2023 Laws of Puerto Rico › TITLE TWENTY-EIGHT - Public Lands (§§ 1 — 737) › PART II - Land Authority (§§ 241 — 512) › Chapter 33 - Finances (§§ 321 — 373) › Subchapter III - Bonds of the Land Authority (§§ 361 — 373) › § 371 - Powers of Authority as to bonds

In connection with the issuance of bonds and in order to secure the payment thereof, the Authority, in addition to its other powers, shall have power:
(a) To pledge all or any part of its gross or net rents, fees or revenues to which its right then exists or may thereafter come into existence.
(b) To mortgage all or any part of its real or personal property, then owned or thereafter acquired.
(c) To covenant against pledging all or any part of its rents, fees and revenues, or against mortgaging all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence, or against permitting or suffering any lien on such revenues or property; to covenant with respect to limitations on its right to sell, lease or otherwise dispose of any property, and to covenant as to what other or additional debts or obligations may be incurred by said Authority.
(d) To covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof; to provide for the replacement of lost, destroyed or mutilated bonds; to covenant against extending the time for the payment of its bonds or interest thereon; and to redeem the bonds, and to covenant for their redemption, and to provide the terms and conditions therefor.
(e) To covenant, subject to the limitations contained in §§ 241 et seq. of this title, as to the rents and fees to be charged in the administration of any property, the amounts to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made thereof; to create or to authorize the creation of special funds wherein to deposit the amounts held for the construction or operation of works, debt service, reserves, or other purposes, and to covenant as to the use and disposition to be made of the amounts covered into such funds.
(f) To prescribe the procedure that may be necessary to amend or abrogate the terms of any contract with the bondholders; to determine the amount of bonds the holders of which must consent to said amendment or abrogation, and the manner in which such consent must be given.
(g) To covenant as to the use of any or all of its real or personal property; and to covenant as to the maintenance of its real and personal property, the replacement thereof, the insurance to be carried thereon, and the use and disposition of insurance moneys.
(h) To covenant as to the rights, liabilities, powers and duties arising upon the breach of any covenant, condition, or obligation assumed by said Authority; and to covenant and prescribe as to cases of default, and the terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before their date of maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived.
(i) To exercise all or any part or combination of the powers herein granted; to make covenants in addition to those herein expressly authorized, of like or different character; to make such covenants and to do any and all such acts and things as may be necessary, convenient or desirable in order to secure its bonds, or, in the absolute discretion of said Authority, as will tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein.
History —Apr. 12, 1941, No. 26, p. 388, § 54, eff. 90 days after Apr. 12, 1941.