2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 3 - Government Bonds (§§ 31-34 — 64) › § 36 - Redemption or purchase of government bonds from available surpluses—Investment of balances belonging to various funds in Commonwealth, municipal, and federal bonds; investment funds; Interest on Investment Fund

The Secretary of the Treasury of Puerto Rico is hereby likewise authorized to use, with the approval of the Governor of Puerto Rico, up to seventy percent (70%) of the balance on hand belonging to special funds and to trust funds, any part of the Commonwealth Emergency Fund that he may consider reasonable, and a sum not exceeding seventy percent (70%) of the balance on hand belonging to the general funds that he may consider reasonable to expend in acquiring or purchasing bonds or any other certificate of indebtedness of the Commonwealth Government of Puerto Rico, or of the municipalities of Puerto Rico, or of the Government of the United States of America; Provided, That in determining the reasonable amount to be expended it shall be necessary to take into consideration the economic program of the Government of Puerto Rico so that there may be at all times funds available to carry out the said program. Likewise in the selection of securities for which the said funds shall be expended the terms thereof and especially their maturity shall be studied so that the maturity of these investments may periodically provide sufficient funds to meet such disbursements as may have to be made from general funds by virtue of legislative appropriations. This investment shall be made in the most advantageous form possible, for the interest of the Government of Puerto Rico or of its municipalities, the Secretary of the Treasury being authorized to pay additional interest or premiums as well as such expenses as may be necessary in order to make these investments, and said bonds or certificates of indebtedness, either original or interim, so acquired or purchased, shall be considered as cash on hand belonging to the respective funds from which the disbursement is made. In making any operation of this nature, the Secretary of the Treasury of Puerto Rico shall set up accounts on his accounting books, headed: “Investments of General Funds,” “Investments of Commonwealth Emergency Fund,” and “Investments of Trust Funds,” according to the kind of funds used to buy the bonds or certificates of indebtedness; accounts to which the Secretary of the Treasury shall charge the amounts invested by the Secretary of the Treasury of Puerto Rico in bonds or certificates of indebtedness acquired or purchased with those funds, and shall credit to the “General Account of the Secretary of the Treasury of Puerto Rico” the total of said amounts. The interest from these investments shall be deposited in a special fund known as “Interest on Investments” from which the Secretary of the Treasury of Puerto Rico may pay additional interest or premium as well as all expenses incurred in the bond issues or certificates of indebtedness issued for the purpose of redeeming, consolidating or refinancing the Commonwealth or municipal public debt, and from which he may purchase, amortize, or redeem any bond issue or certificates of indebtedness belonging to the Commonwealth Government or to the municipal governments. When the Secretary of the Treasury of Puerto Rico decides to pay, redeem, consolidate, or purchase bonds or certificates of indebtedness in accordance with the provisions of §§ 35—43 of this title, he shall use the authorized balances of “General Funds”, of the “Commonwealth Emergency Fund,” of special funds and trust funds, as provided in §§ 35—43 of this title, issuing in their stead, if necessary, interim certificates of indebtedness against said funds, until the corresponding bonds or original certificates of indebtedness are issued. Any bond or certificate of indebtedness, either original or interim, issued by the Secretary of the Treasury of Puerto Rico under the provisions of §§ 35—43 of this title shall be signed by the Governor and by the Secretary of the Treasury of Puerto Rico.
History —Dec. 7, 1942, No. 33, p. 174, § 2; May 15, 1945, No. 318, p. 1198.