2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 6 - Interest Rate Exchange Agreements (§§ 81 — 85) › § 81 - Definitions

The following terms shall have the meaning expressed below and the words used in the singular shall include the plural and vice-versa:
(a) Independent financial advisor. — Means any person or entity experienced in financial matters and in the risks of the qualified interest rate exchange agreements, contracted by the Secretary of the Treasury or the Government Development Bank for Puerto Rico on behalf of the Secretary of the Treasury to advise the Commonwealth regarding qualified interest rate exchange agreements. Neither the independent financial advisor nor any of its affiliates or agents may be the other party under a qualified interest rate exchange agreements in relation to which said independent financial advisor is advising the Commonwealth.
(b) Authority. — Means the Public Buildings Authority of Puerto Rico created through §§ 901—917 of Title 22.
(c) Qualified interest rate exchange agreement. — Means a agreement, including the confirmation of a transaction conducted under an original agreement, executed by the Secretary of the Treasury according to and in compliance with the requirements of this chapter, which, in the judgment of the Secretary of the Treasury, is designed to control the risks or costs of the Commonwealth related to interest rates fluctuations, investments, changes in price levels or credit risks of the Commonwealth, including but not limited to financial exchange agreements, interest rate limits, coverage agreements that provide interest rates bases and ceilings, corridors, maximum and minimum interest rate limits agreements, deferred delivery agreements, flotation agreements, interest rates option agreements, basis swaps agreements and other similar agreements which in the judgment of the Secretary of the Treasury shall assist the Commonwealth in managing said risks or costs.
(d) Qualified interest rate exchange agreement of the Authority. — Means a agreement, including the confirmation of a transaction conducted under an original agreement, executed by the Authority according to and in compliance with the requirements of this chapter, which, in the judgment of the Executive Director, is designed to control the risks or costs of the Authority related to interest rates fluctuations, investments, changes in price levels or credit risks of the Authority, or to obtain other economic benefits equal to reductions in the interest rates or the service of the debt of outstanding bonds, including but not limited to financial exchange agreements, interest rate limits, coverage agreements that provide interest rates bases and ceilings, corridors, maximum and minimum interest rate limits agreements, deferred delivery agreements, flotation agreements, interest rates option agreements, basis swaps agreements and other similar agreements which in the judgment of the Executive Director shall assist the Authority in managing said risks or costs.
(e) Executive Director. — Means the Executive Director of the Authority.
(f) Commonwealth. — Means the Commonwealth of Puerto Rico.
(g) Guarantee. — Shall have the meaning given in § 83a of this title.
(h) Obligations. — Means bonds, notes, notes in anticipation of bonds, commercial paper or other evidence of debt (including financial lease agreements or financial installment agreements) with fixed or variable rates of interest, issued, executed or unconditionally guaranteed by the Commonwealth or by the Authority, as the case may be.
(i) Secretary of the Treasury or Secretary. — Means the Secretary of the Department of the Treasury acting on behalf and in representation of the Commonwealth.
History —Aug. 1, 2005, No. 39, [art. 2]