2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 3 - General Provisions (§§ 621-639 — 1100a) › Chapter 74 - Municipal Finance Agency (§§ 681 — 697) › § 687 - Bonds

In order to provide funds for the purchase of municipal bonds or municipal notes on bond anticipation, as authorized by § 686 of this title, or to refinance bonds of the Agency, or to establish or increase reserves to secure bonds of the Agency, the Agency is hereby authorized to provide by resolution, at one time or from time to time, for the issuance of bonds of the Agency in such amount or amounts as the Agency shall determine. Such bonds shall be payable from funds of the Agency, including, but without limitation:
(1) Funds received in payment of principal of and interest on municipal bonds or municipal notes on bond anticipation in possession of the Agency;
(2) the proceeds of the sale of any such municipal bonds or municipal notes on bond anticipation, and
(3) any moneys appropriated or transferred to the Agency by the Commonwealth, as shall be provided by the resolution of the Agency authorizing any such bonds.
The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding the maximum permitted by law and shall mature at such time or times, not exceeding forty (40) years from their date or dates, as may be determined by the Agency, and may be made redeemable before maturity, at the option of the Agency, at such price or prices and under such terms and conditions as may be fixed by the Agency prior to the issuance of the bonds. The Agency shall determine the form of the bonds, including any interest coupons to be attached thereto, and the manner of execution of the bonds, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereof, which may be at any bank or trust company within or without the Commonwealth of Puerto Rico. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if he would have remained in office until such delivery. All bonds issued under the provisions of this chapter shall have and are hereby declared to have, as between successive holders, all the qualities and incidents of negotiable instruments under Act Apr. 22, 1930, §§ 1–196. The bonds may be issued in coupon or in registered form or both as the Agency may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion of any bonds registered as to both principal and interest into coupon bonds. The Agency may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine to be for its best interests. The proceeds of the sale of such bonds shall be disbursed for the purposes for which such bonds shall have been issued under such restrictions, if any, as the resolution authorizing the issuance of such bonds or the trust indenture hereinafter mentioned may provide. Prior to the preparation of definitive bonds, the Agency may under like restrictions issue temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Agency may also provide for the replacement of any bond which shall become mutilated, destroyed or lost. Such bonds may be issued without the need to observe any other proceeding, act or thing not provided for in this chapter.
History —June 30, 1972, No. 29, p. 432, § 7; June 7, 1973, No. 115, p. 467, § 3.