2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6022 - Use of the product of bonds, notes or other instruments

(a) The product of the bonds, notes and other instruments shall be used for the purpose or purposes authorized in the ordinance or resolution, as the case may be, up to an amount which does not exceed that provided for each purpose in the ordinance or resolution.
(b) If the amount used for any of the purposes specified in an ordinance or resolution authorizing an obligation evidenced by municipal general obligation bonds or notes or notes in advance of municipal general obligation bonds is less than the amount appropriated for such a purpose in said ordinance or resolution, the Legislature may, with the approval of the Government Bank, use any remainder in any of the following manners through a resolution to such effects:
(1) For any of the other purposes specified in the ordinance or resolution which authorizes bonds or notes; or
(2) for any purpose or purposes for which municipal general obligations bonds or notes may be issued, as provided in § 6003 of this title, or
(3) for the payment of the principal and interest on any municipal general obligation bonds or notes or interest on any notes in advance of municipal general obligation bonds of the municipality.
(c) If the amount used for any of the purposes specified in an ordinance or resolution authorizing an obligation evidenced by special obligation bonds, notes or instruments is less than the amount appropriated for such a purpose in said ordinance or resolution, the Legislature may, with the approval of the Government Bank, dispose of the remainder in any of the following manners through a resolution to such effects:
(1) For any of the other purposes specified in the ordinance or resolution which authorizes special obligations; or
(2) for any purpose for which special obligations may be incurred, as provided in § 6003 of this title, or
(3) for the payment of the principal and interest on any special obligation bonds, notes or instruments outstanding in the municipality.
(d) When the remainders referred to in subsections (b) and (c) of this section exceed forty thousand dollars ($40,000), the Legislature shall hold a public hearing in accordance to the procedure established in § 6006 of this title prior to adopting the resolution authorizing the use of the remainder.
(e) If the amount used for any of the purposes specified in an ordinance or resolution authorizing an obligation evidenced by revenue bonds is less than the amount appropriated for such a purpose in said ordinance or resolution, the remainder shall be applied to the payment of the principal, the interest and the premiums, if any, of the revenue bonds object of the issue.
(f) The municipality may desist of one or more purposes specified in an ordinance or resolution authorizing an obligation evidenced by municipal general obligation bonds or notes, notes in advance of municipal general obligation bonds and special obligation bonds, notes or instruments, and apply to other purposes that part of the product appropriated for the purpose or purposes from which the municipality intends to desist, provided that the Legislature, with the approval of the Government Bank, complies with the following procedure:
(1) In cases of obligations evidenced by municipal general obligation bonds, special obligation bonds, or other instruments with maturity greater than eight (8) years, the Legislature shall follow the procedure of notice of public hearing, the holding of a public hearing, the adoption and approval of an ordinance and the publication of a notice of approval established in §§ 6006, 6008a and 6009 of this title, or
(2) in cases of obligations evidenced by municipal general obligation notes, notes in advance of municipal general obligation bonds, special obligation notes or other special obligation instruments with maturity of less than eight (8) years, the Legislature shall follow the procedure of adoption and approval of a resolution and the publication of a notice of approval established in §§ 6004, 6005, 6008a and 6009 of this title.
History —July 3, 1996, No. 64, § 23, renumbered as § 26 and amended on Aug. 12, 1997, No. 75, § 25.