reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 587 - Governmental enterprises and authorities—Paying agent

The Bank shall be and is hereby appointed and authorized to act as agent for the payment of interest and principal of bonds, notes or other evidences of indebtedness issued by any public service enterprise or authority owned or controlled by the Commonwealth Government heretofore created or hereinafter created, including but without limiting thereto, the Puerto Rico Electric Power Authority, Puerto Rico Ports Authority, Development Company of Puerto Rico, Puerto Rico Agricultural Development Company, Puerto Rico Aqueduct and Sewer Authority, Puerto Rico Land Authority, Puerto Rico Communications Authority (each of which is hereinafter sometimes referred to as a “unit”). No such unit shall select any other bank, trust company, individual or partnership or corporation to act as such paying agent, for such purposes, unless the Bank shall, by resolution of its Board of Directors, determine not to act as such paying agent, for such unit, in such instance. In the event that the Bank shall determine not to act as such paying agent, for such unit, in such instance, the selection of the paying agent or paying agents, in the event that the appointment of more than one is determined to be advisable, shall be at the election of the Bank and it shall further be within the discretion of the Bank, by resolution of its Board of Directors, to determine to act as co-paying agent for each unit in each instance.
History —May 15, 1945, No. 272, p. 952, §§ 7, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 588 - Governmental enterprises and authorities—Fiscal agent

The Bank shall be and is hereby authorized and appointed to act as agent for any unit for the purpose of registering, authenticating or countersigning, the bonds, notes or other evidences of indebtedness of any such unit, on such terms as may be agreed upon by and between the Bank and such unit. No such unit shall select any other bank, trust company, individual, corporation, association or partnership, to act as such fiscal agent for such purposes, unless the Bank shall, by resolution of its Board of Directors, determine not to act as such fiscal agent for such unit, in such instance. In the event that the Bank shall determine not to act as such fiscal agent for such unit, in such instance, the selection of the fiscal agent or fiscal agents, in the event that the appointment of more than one is determined to be advisable, shall be at the election of the Bank, and it shall further be within the discretion of the Bank, by resolution of its Board of Directors, to act as co-fiscal agent, for each unit, in each instance.
History —May 15, 1945, No. 272, p. 952, §§ 8, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 589 - Governmental enterprises and authorities—Existing contracts with other agents

In the event there is already existent, prior to the enactment of §§ 581—585 of this title, a contract between any such unit and any other bank, trust company, individual, corporation, association or partnership, to act as fiscal agent and/or paying agent, and/or co-paying agent, such contract on such issue for such unit for such purpose, shall not be invalidated by the enactment of §§ 581—585 of this title, until such time as such unit shall have discharged its liabilities for such issue, either thru payment in full of the principal amount of the indebtedness of such issue together with all accrued interest thereon, or until such unit shall redeem such issue thru the call of such issue prior to maturity and shall have discharged its obligation thru the payment in full of the principal amount of such issue then outstanding together with the interest thereon and any and all premiums that may be required thereon or thr[ough] the retirement in full of such issue thr[ough] the purchase of such issue and all coupons or interest obligations appurtenant thereto, either by such unit or by the Commonwealth Government or by the Bank.
The existence of such relationship as described in this section, shall in no way impair the appointment of, nor the authorization of the Bank to act as fiscal agent or paying agent or co-paying agent on any subsequent issue of such unit, nor shall contract, as described in this section, impair the appointment, authorization, powers, duties or obligations of the Bank to act under any other section or §§ 581—595 of this title, singly or severally, as may be determined by resolution of its Board of Directors.
History —May 15, 1945, No. 272, p. 952, §§ 9, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 590 - Governmental enterprises and authorities—Proceeding or fiscal agency purchase and sale contract

The Bank shall be and is hereby authorized and appointed as agent for each unit for the purpose of creating by and between the Bank and each unit, a proceeding or fiscal agency purchase and sales contract for the issuance, purchase, sale and exchange of all bonds, notes or other evidence of indebtedness, on such terms as to payment of fees and expenses as may be agreed on by and between the Bank and each unit; Provided, That such contract shall authorize and empower the Bank to determine the form of the issue including maturity schedule, redemption privileges and premiums therefor, maximum interest rate or rates, method of sale and all other factors which the Bank may in its discretion determine as being essential for the protection of each unit and of the Commonwealth Government and for proper sale procedure. No unit shall select any investment banker, bank, trust company, individual, corporation, association, partnership, or combination thereof, for the purpose of this section, unless the Bank shall, by resolution of its Board of Directors determine not to act as such agent, for such unit, in such instance, then in such event the selection of an agent, for the purposes of this section, for such unit, shall be at the election of the Bank; Provided, further, That no such contract shall impair the appointment, authorization, powers, duties or obligations of the Bank to act under any other section or §§ 581—595 of this title, singly or severally, as may be determined by resolution of its Board of Directors.
History —May 15, 1945, No. 272, p. 952, §§ 10, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 591 - Governmental enterprises and authorities—Execution and terms of contract

Each unit shall be and is hereby authorized and directed to execute a contract with the Bank for the purposes of § 590 of this title. Such contract shall be a proceeding or fiscal agency purchase and sales contract for the issuance, purchase, sale and exchange of all bonds, notes or other evidences of indebtedness for such unit; Provided, That such contract shall authorize and empower the Bank to determine the form of the issue including maturity schedule, redemption privileges and premiums therefor, maximum interest rate or rates, method of sale and all other factors which the Bank may, in its discretion, determine as being essential for the protection of such unit and of the Commonwealth Government and for proper sale procedure. The terms for payment of fees and expenses by each unit to the Bank for services rendered or to be rendered shall be agreed on by and between each unit and the Bank; Provided, That in the event such terms cannot be agreed upon by and between any unit and the Bank, such unit may appeal to the Governor of Puerto Rico for his judgment in the matter, and both, the unit and the Bank, shall accept the decision of the Governor as final. In the event that any unit shall contest the decision of the Bank as to terms for purchase, sale, issue or exchange of any bonds, notes, or other evidence of indebtedness of such unit, such unit may appeal to the Council of Secretaries for intervention, and, both the unit and the Bank, shall accept the decision of the Council of Secretaries as final.
History —May 15, 1945, No. 272, p. 952, §§ 11, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 592 - Governmental enterprises and authorities—Existing contracts

In the event that there shall exist, prior to the enactment of §§ 581—595 of this title, any proceeding or fiscal agency purchase or sales contract, by and between any unit and any investment banker, bank, trust company, individual, corporation, association, partnership, or a combination thereof, for the issuance, sale, exchange or purchase by any unit, of bonds, notes or other evidences of indebtedness, such contract shall in no way impair the appointment or authorization of the Bank to act as fiscal agent, paying agent or co-paying agent of such unit, on such issue, nor shall it impair the rights, duties, or obligations of the Bank, under any other section or §§ 581—595 of this title, either singly or severally.
History —May 15, 1945, No. 272, p. 952, §§ 12, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 593 - Determination to act as agent; fees and expenses

The Bank is hereby charged with the responsibility of basing its determination to act or not to act for or on the behalf of any unit, on the sole basis that such determination will best serve the Commonwealth of Puerto Rico, its municipalities, agencies, authorities and other political subdivisions, and is further charged with the responsibility of fixing the fees and expenses chargeable to the Commonwealth Government, its agencies and municipalities, and to the Secretary of the Treasury of Puerto Rico, and to units (as described in § 587 of this title) on an amount that would not exceed normal commercial rates for identical services, in each instance, where such rates are a matter of established record in banks and trust com pa nies, and in all other instances, on a basis that will afford reasonable compensation to the Bank for services rendered.
History —May 15, 1945, No. 272, p. 952, §§ 13, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 594 - Power to deal in bonds, etc

The Bank may in good faith, buy, sell, own, hold and deal in any of the bonds, notes, evidences of indebtedness and/or interest coupons or evidences of interest appurtenant thereto, of the Commonwealth Government, its agencies and municipalities, and of the Secretary of the Treasury of Puerto Rico, and of any units, as described in § 587 of this title, and may join in any action which any bondholder, noteholder or holder of evidence of indebtedness, may be entitled to take with like effect, as if the Bank were not acting singly or severally under any section or §§ 581—595 of this title.
History —May 15, 1945, No. 272, p. 952, §§ 14, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 595 - English text prevails

If in the interpretation and application of §§ 581—595 of this title any conflict arises as between the Spanish and the English texts thereof, the latter shall prevail over the former.
History —May 15, 1945, No. 272, p. 952, § 16.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 601 - Incentive program

The Government Development Bank for Puerto Rico is hereby authorized to establish a program for the payment of a subsidy which shall serve as an incentive so that the banks and institutions that grant loans to students of post-secondary level under Title IV of the “Federal Education Act of 1965”, as amended, may increase the granting of said loans.
History —May 30, 1969, No. 19, p. 33, § 1, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 602 - Payment of subsidy

The Government Development Bank is hereby authorized to pay to those banks and institutions authorized, and which make loans to students residents of Puerto Rico, which loans are secured by the Government of the United States under the above-mentioned federal act, a subsidy which shall not exceed two percent (2%) annually on the balance of the principal of each loan, in excess of the interest allowed under said federal act. The borrowing students shall not be under the obligation to pay or reimburse said subsidy.
History —May 30, 1969, No. 19, p. 33, § 2, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 603 - Regulations

The Government Development Bank for Puerto Rico is hereby authorized to establish by regulations the norms that will govern the payment of the subsidy referred to in § 602 of this title, on loans to students authorized hereunder.
History —May 30, 1969, No. 19, p. 33, § 3, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 604 - Appropriation

The sum of $200,000 is hereby appropriated to the Government Development Bank for Puerto Rico from any unencumbered funds in the Commonwealth Treasury to carry out the purposes of §§ 601—606 of this title.
History —May 30, 1969, No. 19, p. 33, § 4, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 605 - Reports

Any bank or institution authorized to make and which makes loans to students under the said federal act, and which receives from the Government Development Bank supplementary payment as subsidy under the provisions of §§ 601—606 of this title, shall be under the obligation to furnish to said Development Bank such information as the latter may require to determine accurately the supplementary amount to be paid or to allow the Development Bank or its employees or agents to audit the books of the Bank or the lending institution to determine the accuracy of the supplementary amount to be paid.
History —May 30, 1969, No. 19, p. 33, § 5, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter III - Incentive Program for Loans Under Title IV of the Federal Education Act of 1965 (§§ 601 — 606) › § 606 - Pledge

The good faith and the credit of the People of Puerto Rico is hereby pledged to pay the supplementary subsidy authorized by §§ 601—606 of this title to banks or institutions which make loans to students under Title IV of the “Federal Education Act of 1965”, as amended, and to appropriate to the Government Development Bank the additional funds necessary for such purpose.
History —May 30, 1969, No. 19, p. 33, § 6, eff. July 1, 1969.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607 - Negotiation and execution of instruments

It is hereby required that all departments, agencies, instrumentalities and public corporations of the Commonwealth of Puerto Rico identified in column A of § 607a of this title and their successors, negotiate and execute with the Government Development Bank for Puerto Rico, the agreements, promissory notes or finance contracts necessary to establish, recognize and formalize, restructure and/or refinance the advances, repayment pledges, obligations and/or loans of said government institutions with the Government Development Bank itemized in column B of § 607a of this title. The effectiveness of said agreements, promissory notes or finance contracts shall be retroactive to July 1, 2001. Said advances, pledges, obligations and loans may be restructured and refinanced more than once, if necessary. Each of these government entities are further authorized to pay or to include as part of the principal on their advances, pledges, obligations and/or loans all expenses related to said restructuring and/or refinancing, including, but without it being understood as a limitation, the expenses incurred by said government entity or the Government Development Bank to carry out said restructuring or refinancing or when disposing of said obligations and loans, the expenses concerning any bond issue relative to the placement of said obligations and loans, including the bonds of the Puerto Rico Public Financing Corporation, the amounts that may be necessary to deposit in the reserve accounts established to assure the repayment of any of said bonds, the premiums for any financial guarantee, bond insurance or letter of credit obtained, and all interest accrued to the date of the approval of this act. Said restructured or refinanced obligations shall provide that, in addition to the payment of the principal and the interest, these government entities are under the obligation to make the payments that are necessary pursuant to the interest rates swaps related to Puerto Rico Public Financing Corporation bonds, payments for termination or breach of investment contracts or interest rates swaps related to said bonds, payments required to be deposited in any reserve account for the benefit of said bonds, payments of redemption premiums on said bonds, payments to any trustee of said bonds, payments to any provider of a letter of credit or liquidity facility for the benefit of all or part of said bonds and any other payments payable under said bonds or pursuant to the trust agreement for said bonds. The total annual payment of the principal, the interest and any other payment under said advances, pledges, obligations and loans shall not exceed two hundred twenty-five million dollars ($225,000,000).
History —Dec. 17, 2001, No. 164, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607b - Budget appropriations

The Commonwealth of Puerto Rico shall honor, through budget appropriations made by the Legislature in the operating budgets for each fiscal year for the next thirty (30) years, beginning with fiscal year 2001-2002, the payments of the principal, the interest and any other payment allowed in § 607 of this title concerning the advances, pledges, obligations and loans identified in § 607a of this title, as they are restructured and/or refinanced pursuant to the provisions of this subchapter. Pursuant to this purpose, the Director of the Office of Management and Budget shall include in the operating budgets of the Commonwealth of Puerto Rico submitted annually by the Governor of the Commonwealth of Puerto Rico to the Legislature, beginning with the budget for fiscal year 2001-2002, the amount needed to meet the payment of the principal, the interest and any other payment related thereto. The budget appropriation may not exceed two hundred twenty-five million dollars ($225,000,000) each year, and said annual appropriation shall be made for the term that is necessary to settle the same, but said term shall not exceed thirty (30) fiscal years. The budget appropriations for the payment of the principal and the interest on the loan related to the budget deficiency for fiscal year 2001, which is included in § 607a of this title, shall be included in the operating budget beginning with fiscal year 2002-2003.
History —Dec. 17, 2001, No. 164, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607b-1 - Negotiate and execute agreements, notes or financial contracts

Every department, agency, instrumentality and public corporation of the Commonwealth of Puerto Rico, and their successors (hereinafter denominated as “government entities”) are hereby require to negotiate and execute with the Government Development Bank for Puerto Rico, agreements, notes or financial contracts as are necessary to establish, recognize, and execute, restructure and/or refinance any advances, repayment agreements, obligations, and/or loans of said government entities with the Government Development Bank for Puerto Rico. Said new agreements, notes, or financial contracts shall be effective on July 1st, 2016. If necessary, said advances, agreements, obligations and loans may be restructured or refinanced more than once. Furthermore, these government entities are hereby authorized to pay or include as part of the principal of their advances, agreements, obligations and/or loans, any expenses related to said restructuring and/or refinancing, including, but not limited to expenses incurred by such government entity or the Government Development Bank for Puerto Rico in carrying out said restructuring and/or refinancing, or in disposing of said obligations and loans, the expenses related to any bond issue in connection with the trading of such bonds and placement of such loans, including the bonds of the Puerto Rico Public Finance Corporation, the amounts that must be deposited in the reserve accounts to be established to ensure the repayment of any such bonds, premiums for any financial guarantee, surety bond, or letter of credit obtained and the interest accrued as of the date of approval of this act. Restructured or refinanced obligations shall provide that, in addition to the payment of the principal and interest, these government entities shall be required to make: the necessary payments under interest rate swaps in connection with the bonds of the Puerto Rico Public Finance Corporation; payments for termination or breach of interest rate swaps or investment agreements in connection with said bonds; payment required for deposit in any reserve account for the benefit of such bonds; payment of redemption premiums of such bonds; payment to any trustee of such bonds; payment to any letter of credit provider or liquidity facility for the benefit of all or part of such bonds; and any other payment to be made under the terms of said bonds or bond trust indenture agreement.
History —Dec. 17, 2001, No. 164, added as § 4 on Feb. 13, 2014, No. 24, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607b-2 - Advances, agreements, and/or loans that may be entered into or executed, restructured, and/or refinanced

Advances, agreements, obligations, and/or loans that may be entered into or executed, restructured, and/or refinanced under the provisions of § 607b-1 of this title, and the estimated amounts thereof as of December 31st, 2013, including interest accrued pending payment as of said date, shall be those advances, agreements, obligations, and/or loans agreed by the Government Development Bank for Puerto Rico and the Office of Management and Budget up to an aggregate limit of five hundred million dollars ($500,000,000) of the principal, interest, and any other payment allowed under § 607b-1 of this title.
History —Dec. 17, 2001, No. 164, added as § 5 on Feb. 13, 2014, No. 24, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607b-3 - Honoring the payment of principal, interest and any other payment

The Commonwealth of Puerto Rico shall honor, by means of budget appropriations made by the Legislative Assembly in the operating budgets of every fiscal year for the next thirty (30) years, beginning in Fiscal Year 2016-2017, the payment of the principal, interest, and any other payment allowed under § 607b-1 of this title related to advances, agreements, obligations and/or loans stated in § 607b-2 of this title, as these are restructured and/or refinanced in accordance with the provisions of this subchapter. For such purposes, the necessary amount to meet the payment of the principal of, interest on, and any other payment related thereto shall be appropriated in the operating budgets of the Commonwealth of Puerto Rico, annually submitted to the Legislative Assembly by the Governor of the Commonwealth of Puerto Rico beginning with the budget of fiscal year 2016-2017. Said budget appropriation shall be made during the necessary period to pay off the same, but such period shall not exceed thirty (30) years.
History —Dec. 17, 2001, No. 164, added as § 6 on Feb. 13, 2014, No. 24, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607c - Budget appropriations—Uses; claims

The budget appropriations provided under this subchapter shall be used solely for the payment of these advances, pledges, obligations and loans and may not be used for other purposes, nor shall they be subject to claims from other creditors of the government entity.
History —Dec. 17, 2001, No. 164, § 4; renumbered as § 7 on Feb. 24, 2014, No. 24, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607d - Authorization to advance funds

The Secretary of the Treasury is hereby authorized to advance the funds needed for the payment of the principal, the interest and any other payment related to said advances, pledges, obligations and loans. Any amount advanced shall be reimbursed to the Secretary of the Treasury through the budget appropriations authorized under this subchapter.
History —Dec. 17, 2001, No. 164, § 5; renumbered as § 8 on Feb. 24, 2014, No. 24, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607e - Special account

The Secretary of the Treasury shall deposit in a special account in the Government Development Bank, or in any other banking entity, the amount needed to meet the payment of the principal, the interest and other payments allowed by this subchapter, prior to each date on which the principal and the interest are to be paid.
History —Dec. 17, 2001, No. 164, § 6; renumbered as § 9 on Feb. 24, 2014, No. 24, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607f - Transfer of debts

The Government Development Bank may sell, transfer or otherwise dispose of any advance, pledge, obligation or loan covered by the provisions of this subchapter to any financial institution and/or subsidiary of the Government Development Bank, or dispose thereof in the capital markets.
History —Dec. 17, 2001, No. 164, § 7; renumbered as § 10 on Feb. 24, 2014, No. 24, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607g - Loans to government entities—Prohibited

After the effective date of this act, the Government Development Bank for Puerto Rico or any subsidiary thereof is hereby banned from granting loans to any government entity other than a Bank’s subsidiary, whose source of repayment, as determined by the Board of Directors of the Government Development Bank for Puerto Rico or the Board of Directors of any of the Bank’s subsidiaries, as applicable, are future General Fund budget appropriations, without the Legislative Assembly’s approval of such appropriations. Notwithstanding said prohibition, the Government Development Bank for Puerto Rico and the subsidiaries thereof may, from time to time, lend and collectively hold in their portfolios up to one hundred million dollars ($100,000,000) in one or more loans whose source of repayment are future General Fund budget appropriations, without these having been approved by the Legislative Assembly, provided that the Bank obtains a written authorization of the Governor and the Director of the Office of Management and Budget. Budget appropriation bills for the repayment of such loans shall be submitted for the Legislative Assembly’s consideration in the legislative session following the granting of the loan. Once the budget appropriation is approved, the amount of such loan shall be included in the one hundred million-dollar ($100,000,000) limit of the total amount of loans lacking an approved source of repayment that, from time to time, the Bank and the subsidiaries thereof may collectively hold in their portfolios. Notwithstanding the prohibition in the first sentence of this Section and the one hundred million-dollar ($100,000,000) limit provided in the third sentence of this Section, the Government Development Bank is hereby authorized, in any case, to grant loans to any government entity that is unable to honor the payment of the principal of or interest on its obligations to bondholders or financial entities, other than the Government Development Bank, and to grant any type of loan to the Secretary of the Treasury, pursuant to §§ 63 et seq. of Title 13, and §§ 57 et seq. of Title 13, and any other legislation approved to authorize the Secretary of the Department of the Treasury to borrow for similar purposes.
History —Dec. 17, 2001, No. 164, § 8; Jan. 14, 2009, No. 4, § 1; June 30, 2013, No. 45, § 1, eff. July 1, 2013; renumbered as § 11 by § 7 and amended by § 4 on Feb. 13, 2014, No. 24.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607g-1 - Loans to government entities—Other prohibitions

After the effective date of this act, the Government Development Bank for Puerto Rico or any subsidiary thereof is hereby banned from granting loans to any government entity other than a Bank’s subsidiary, whose source of repayment, as determined by the Board of Directors of the Government Development Bank for Puerto Rico or the Board of Directors of any of the Bank’s subsidiaries, as applicable, is contingent on future increases in rates, or surcharges, or other increases in the cost of services rendered, or other source of income of said government entity, or on future bond issues whose feasibility, in the judgment of the Board of Directors of the Government Development Bank, is contingent on future increases in rates, changes or other source of income of such government entity, without having duly approved, in each one of the aforementioned situations, such increase or source of repayment, in accordance with its Organic Act, including the approval of the Board of Directors or governing body of the government entity, or of the Legislative Assembly of Puerto Rico, in the event said approval authorizing such increase or source of payment is required. However, the Bank may grant emergency loans in the event essential public services may be affected, as determined by the Board of Directors of the Government Development Bank for Puerto Rico. A government entity may obtain an emergency loan for up to an aggregate limit that shall not exceed ten percent (10%) of its total average gross income in the last two fiscal years preceding the date on which the loan was requested, up to an aggregate limit for emergency loans granted to a government entity of fifty million dollars ($50,000,000). The amount of each emergency loan granted by the Bank to a government entity shall be included in the aggregate limit of the total amount of emergency loans granted to said government entity once it repays such loans or a duly authorized source of repayment or source of income is approved therefor.
Notwithstanding the limitations set forth in the first paragraph of this section, the Government Development Bank for Puerto Rico is hereby authorized, in any case, to grant loans to any government entity of the Commonwealth of Puerto Rico that is unable to honor the payment of principal of or interest on its obligations to bondholders or financial entities, other than the Government Development Bank for Puerto Rico.
History —Dec. 17, 2001, No. 164, added as § 12 on Feb. 13, 2014, No. 24, § 6.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607h - Other laws

(a) Sections 1151 et seq. of Title 15, § 7035nt of Title 24, §§ 430 et seq. of Title 5 and §§ 353 et seq. of Title 13, and Act No. 179 of August 18, 2000, are hereby amended to the degree that they may be in conflict with the provisions of this subchapter, in order to prevent the duplication of the payment source and in conflict with the terms and conditions established in this subchapter.
(b) Except as provided in subection (a) of this section, this subchapter shall not be construed to repeal or amend any other previous Act of the Legislature of Puerto Rico authorizing any government entity to execute loans with the Government Development Bank.
History —Dec. 17, 2001, No. 164, §§ 9, 10; renumbered as §§ 13 and 14 on Feb. 24, 2014, No. 24, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter IV - Debt Refinancing for Governmental Entities (§§ 607 — 607i) › § 607i - Penalty

Any person who grants financing payable from the General Fund of the Commonwealth of Puerto Rico without the authorization established herein or who grants financing that is inconsistent with the provisions of § 607g-1 of this title shall be personally liable and shall commit a violation of this subchapter. To such effect, said person shall be guilty of a felony entailing penalties of up to three (3) years of imprisonment.
History —Dec. 17, 2001, No. 164, § 11; renumbered as § 15 by § 7 and amended by § 5 on Feb. 13, 2014, No. 24.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608 - Implementation

The Government Development Bank (the Bank) and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, in their capacity as public corporations, shall implement a staggered Voluntary Early Retirement Program for all employees who meet the requirements established in this chapter. These employees shall constitute the following group:
(a) The first group shall be constituted by those persons who have been employees of the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, for at least one (1) year prior to the date of their retirement and who by December 31, 2007, have completed twenty-four (24) years or more of credited services in the Retirement System.
(b) The second group shall be constituted by those persons who have been employees of the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, for at least one (1) year prior to the date of their retirement and who by March 31, 2008, have completed twenty-four (24) years or more of credited services in the Retirement System.
Implementation of the Voluntary Early Retirement Program for the employees of the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, herein authorized, shall be done in strict compliance with all labor laws, the collective bargaining agreements in effect and with due respect to the Merit Principle, to the legal provisions that prohibit political discrimination and to the vested rights of the public servants employed in said entity.
History —Dec. 12, 2007, No. 188, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608b - Special incentives

The special incentives that the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority shall grant to those employees who comply with the parameters consigned in § 608 of this title, are the following:
(a) A lump sum for voluntary retirement equal to fifty percent (50%) of the annual salary of the employee who avails him/herself of the program authorized by this chapter.
(b) Continuation of the life and cancer insurance benefit provided by the Bank to employees, without age limit, fixed according to the coverage and conditions in effect to December 31, 2007.
(c) The medical plan until the insured (the employee) reaches the age of sixty-four (64) years. The coverage shall be fixed according to those in effect December 31, 2007, while the Bank, and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, retains the power to amend the coverage of the medical plan applicable to those employees who belong to the plan as well as to change its administrator when deemed convenient, as is presently occurring, and under equal conditions with the medical plan provided for the employees of the Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority. There may not be any changes in the status of the beneficiaries except to cancel their membership. A pensioner who becomes a member of the plan and subsequently goes to work in a position which makes him/her eligible for a medical plan shall loose his/her right to continue participating of these benefits. The Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, may require that once a year all employees who wish to continue under this coverage submit to the Department of Human Resources and Labor Relations of the Bank a sworn statement about their eligibility.
(d) As an alternative, in lieu of the medical plan described above, an employee may choose to receive an amount of money to be offered, which shall fluctuate between five thousand dollars ($5,000) and fifty five thousand dollars ($55,000) according to the years remaining to the employee before reaching the age of sixty-four (64). Choosing this alternative in lieu of the medical plan shall be done on the date in which the employee gives notice of his/her intention of joining the plan.
(e) Grant a Christmas Bonus of eight point seventy five percent (8.75%), for up to a maximum of five thousand two hundred and fifty dollars ($5,250), on the income received from the date of the last bonus to the date on which the early retirement of the employee is effective.
History —Dec. 12, 2007, No. 188, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608c - Exercise of decision

Those employees who meet the requirements established in §§ 608(a) and 608a of this title shall have to exercise their decision to join the Early Retirement Program on or before January 31, 2008, and the date for the payment of the pension shall be May 1, 2008.
[Those employees who meet the requirements established in §§ 608(b) and 608a of this title shall have to exercise their decision to join the Early Retirement Program on or before March 31, 2008, and the date for the payment of the pension shall be May 1, 2008.]
Any decision of an employee about joining the Voluntary Early Retirement Program herein provided shall be deemed final, firm and irrevocable for all legal purposes.
History —Dec. 12, 2007, No. 188, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608d - Judicial or administrative claims

It is hereby provided that the opportunity for eligible employees to join the Voluntary Early Retirement Program shall not be conditioned by their having to waive any present or pending judicial adjudication or administrative claims against the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority.
History —Dec. 12, 2007, No. 188, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608f - Actuarial cost

The actuarial cost of the pensions provided in this chapter, as determined by the Administrator of the Retirement System of the Employees of the Government and the Judiciary, shall be paid in advance by the Government Development Bank and its affiliate, the Puerto Rico Infrastructure Financing Authority and its subsidiary, the Puerto Rico Housing Financing Authority, to the Retirement Systems Administration of the Employees of the Government and the Judiciary according to the payment schedule established by the Administrator of the Retirement Systems. Said actuarial cost shall consist of the difference between the present value of the accelerated pension provided in this chapter and the present value of a pension for years of service under the provisions of §§ 761 et seq. of Title 3, and according to the provisions of the present legislation. It is further provided that the GDB and its affiliate, the IFA and its subsidiary, the HFA shall annually compensate the Retirement Systems Administration of the Employees of the Government and the Judiciary for the costs incurred for the implementation and administration of the Voluntary Early Retirement Program authorized by this chapter and for all actuarial studies requested or to be requested by the Bank, it affiliate and its subsidiary from the Retirement System. The funds for paying for the Voluntary Early Retirement Program shall proceed from the GDB and its affiliate, the IFA and its subsidiary, the HFA, and therefore the resources of the General Fund of the Commonwealth of Puerto Rico shall not be encumbered.
In case the payment made by the GDB and its affiliate, the IFA and its subsidiary, the HFA, is greater than the actuarial cost, the Retirement Systems Administration of the Employees of the Government and the Judiciary shall reimburse to the GDB and its affiliate, the IFA and its subsidiary, the HFA, as the case may be, the excess of the amount paid within a period of not more than thirty (30) days [following] the effective date of the Program. If on the contrary, the payment made by the GDB and its affiliate, the IFA and its subsidiary, the HFA, were inefficient, these shall issue a payment for the additional cost certified by the corresponding Retirement Systems Administration, within a period of not more than thirty (30) days [following] the effective date of the Program.
History —Dec. 12, 2007, No. 188, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61A - Voluntary Early Retirement Program for the Employees of the Government Development Bank for Puerto Rico (§§ 608 — 608h) › § 608g - Payment of new benefit

The GDB and its affiliate, the IFA and its subsidiary, the HFA, shall be liable for the payment of any other new benefit granted by law to the pensioners who have availed themselves of this Early Retirement Program.
History —Dec. 12, 2007, No. 188, § 7[bis]