2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART IV - Navigation and Marine Trade (§§ 2101 — 3223) › Chapter 102 - Port Authority of the Americas (§§ 2901 — 2923) › § 2915 - Right to appoint trustee

(a) In the event that the Authority defaults on the payment of principal or interest on any of its bonds, after such payment or payments become due, whether for lack of payment of the principal and interest or of interest only when the bonds mature or when their redemption is announced, and such lack of payment persists for a period of thirty (30) days, or in the event that the Authority or its officers, agents, or employees violate any agreement with the bondholders, any bondholder or bondholders (subject to any contractual limitation as to any specific percentage of such holders), or their trustee, shall have the right to request from any court with jurisdiction in Puerto Rico and through the proper judicial proceeding, the appointment of a trustee for the properties or parts thereof, whose income or revenues are committed for the payment of the outstanding bonds, whether or not all the bonds have been declared due and payable, and whether or not such holder or trustee requests or has requested that any other right be enforced or that any other remedy be exercised in connection with such bonds. The court, in accordance with such request, may designate a trustee for such properties; but if the request is made by the holders of twenty-five percent (25%) or more in principal amount of the bonds then outstanding or by any trustee of bondholders for such principal amount, the court shall be required to appoint a trustee for such properties.
(b) The trustee thus appointed may immediately proceed on its own or through its agents and attorneys to enter and take possession of such properties, and may totally exclude the Authority, its officers, agents, and employees, and all persons subject to the authority of the aforementioned from such properties; and the trustee shall have, possess, use, exploit, administer, and regulate the same; and on behalf of the Authority or otherwise, as the trustee deems best, the trustee shall exercise all rights and powers of the Authority with respect to such properties just as the Authority itself would. Said trustee shall conserve, restore, insure, and maintain insured such properties and shall make the necessary or appropriate repairs that it deems pertinent from time to time, and shall establish, impose, maintain, and collect the rates, fees, rents, and other charges in relation to such properties which said trustee deems necessary, appropriate, and reasonable, and shall collect and receive all income and revenues and deposit the same in a separate account and apply such income and revenues thus collected and received in the manner ordered by the court.
(c) When all amounts owed on the bonds, including interest thereon, and on any other promissory notes, bonds, or other obligations and interest thereon, which constitute a lien, obligation or encumbrance on the revenues from such properties in accordance with any of the terms of any contract or agreement with the bondholders, has been paid or deposited as specified therein, and all violations as a consequence of which a trustee may be appointed have been rectified and corrected, the court, at its discretion, after notice and public hearing as the court deems proper and reasonable, may order the trustee to transfer possession of such properties to the Authority; and in subsequent cases of violations the bondholders shall have the same right to obtain the appointment of a trustee, as previously provided.
(d) Said trustee, in compliance with the powers hereby conferred thereto, shall act under the direction and inspection of the court, shall always be subject to its orders and decrees, and may be removed by the court. None of the provisions contained herein shall limit or restrict the jurisdiction of the court to issue those other additional decrees or orders which it deems necessary or appropriate for the exercise, by the trustee, of any of the functions specifically indicated in this chapter.
(e) Notwithstanding any provision to the contrary contained in this section, said trustee shall not have the power to sell, transfer, mortgage, or otherwise dispose of the properties of the Authority, but that the powers of said trustee shall be limited to the exploitation and conservation of said properties, and to the collection and application of the income and revenues thereof, and the court shall not have jurisdiction to issue any order or decree requiring or allowing such trustee to sell, mortgage, or otherwise dispose of any property.
History —Aug. 11, 2002, No. 171, § 16.