2023 Laws of Puerto Rico › TITLE TWENTY-EIGHT - Public Lands (§§ 1 — 737) › PART I - Lands Generally; Mines (§§ 1 — 226) › Chapter 6 - Development of Mineral Resources (§§ 91 — 91z) › § 91r - Default of payment of bonds; receivership

(a) In the event that the Corporation 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 at their maturity or upon call for redemption, and such default continues for a period of thirty (30) days, or in case the Corporation violates any agreement made with the bondholders, any holder or holders of bonds (subject to any contractual limitation as to a specific percentage of such holders) or the 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 for the Corporation, the revenues of which are pledged to the payment of the bonds 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 other remedy in connection with such bonds. Upon such application the court may appoint, and if the application is made by the holders of twenty-five percent (25%) in principal amount of the outstanding bonds or by any trustee for the holders of bonds in such principal amount, it shall appoint, a receiver.
(b) The receiver so appointed shall forthwith, personally or by his agents and attorneys, enter into and take possession of the Corporation, and he may wholly include the Corporation, its officers, agents and employees and all persons thereunder, and shall have, possess, use, operate, administer and control the Corporation and, in the name of the Corporation or, otherwise, as he may deem best, shall exercise all rights and powers of the Corporation as the Corporation itself might do. Said receiver shall maintain, restore, insure and keep insured, the properties of the Corporation and from time to time shall make all such necessary and pertinent repairs as he may deem convenient; shall establish, levy, maintain, and collect such fees, rentals and other income as he may deem necessary, proper and reasonable, and shall collect and receive all revenues and deposit them in a separate account and shall apply said revenues so collected and received in such manner as the court may direct.
(c) When all that is due upon the bonds, including interest thereon, and upon any other notes which constitute a lien, encumbrance or obligation on the revenues of the Corporation and under any terms of any contract or agreement with the bondholders, shall have been paid or deposited as provided therein, and all violations in consequence of which a receiver may be designated shall have been corrected and made good, the court may, in its discretion and after such notice and public hearing as it may deem reasonable and proper, order the receiver to surrender possession of the Corporation, and the same right of the bondholders to obtain the appointment of a receiver upon any subsequent violation as previously provided shall subsist.
(d) In the performance of the powers above conferred upon him, said receiver shall act under the direction and supervision of the court and shall at all times be subject to its orders and decrees, and he may be removed by said court. Nothing herein contained shall limit or restrict the jurisdiction of the court to issue such other further orders and decrees as it may deem necessary and proper to permit the receiver to exercise any of the functions specifically set forth in this chapter.
(e) Notwithstanding any provision to the contrary contained in this section, said receiver shall have no power to sell, assign, mortgage, or otherwise dispose of any assets of whatever kind or nature belonging to the Corporation, but the powers of such receiver shall be limited to the operation of the Corporation and to the collection and application of the income that may accrue and be received, and the court shall not have jurisdiction to issue any order or decree requiring or permitting said receiver to sell, mortgage or otherwise dispose of any such assets.
History —July 2, 1975, No. 145, p. 433, § 19.