271b

The Agency is hereby authorized to issue bonds from time to time for the purposes established in § 271 of this title, up to the maximum amount of ninety million dollars ($90,000,000), plus the capitalization of interest for a maximum term of one (1) year and the costs of said bond issue. Said bonds shall have a maximum maturity of twenty (20) years from the date of issue. The good faith and credit of the Commonwealth of Puerto Rico shall not be pledged for the payment of the principal and interest of such bonds. Once said bonds have been issued and the proceeds thereof used to pay up the provisional construction financing by virtue of § 271 of this title, the warranty of the Commonwealth of Puerto Rico and the authority of the Agency to issue debenture bonds under the provisions of § 271 shall be revoked.Said bonds shall be paid using the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal and interest on the debenture bonds. If said funds are insufficient for the payment of such principal and interest upon maturity, the Agency shall draw on any of its unencumbered funds such sums needed for the payment of such overdue principal and

ds are insufficient for the payment of such principal and interest upon maturity, the Agency shall draw on any of its unencumbered funds such sums needed for the payment of such overdue principal and interest and shall direct that said sums be covered into the Special Reserve Fund.The sums needed for the payment of the principal and interest of said bonds that cannot be paid in the manner previously prescribed are hereby appropriated to the Agency from unencumbered funds in the Commonwealth Treasury. The Office of Management and Budget shall annually consign said sums in the General Budget Joint Resolution beginning with fiscal year 1987-88 to cover the total payment on said bonds. History —June 25, 1965, No. 87, p. 216, added as § 11-B on Sept. 30, 1986, No. 4, p. 798, § 2.