Act 43-2005: authorizes Commonwealth bonds up to $575 million (2006 public improvements)

On August 1, 2005, Act No. 43 was approved, authorizing the Treasury Secretary to issue and sell Commonwealth of Puerto Rico bonds in a principal amount not exceeding $575 million, designated “Commonwealth of Puerto Rico Public Improvement Bonds of the Year 2006,” to cover the cost of necessary public improvements (useful life ≥5 years; no operating expenses in the financing).

The statute breaks down estimated proceeds by line: transportation/communications $78.95 million; hospitals/schools/welfare/health/labor $71.273 million; agricultural/industrial/tourist $25.884 million; parks/recreation/culture $53.8 million; flood control/solid waste $55.75 million; issuance costs $3.5 million; municipal works $73.369 million; construction of works $79.379 million; housing $68.95 million; law and order/corrections/justice $35.395 million; river channeling $28.75 million (total $575 million).

The Commonwealth’s full faith, credit and power to tax are irrevocably pledged to payment of principal and interest. It also authorizes bond anticipation notes (maturity ≤5 years from first issuance), temporary General Fund advances repayable from proceeds, and a “2006 Public Improvements Fund.” Of proceeds, $28.75 million remain under OGP (incl. $6 million for the Manatí Municipal Coliseum roof; remainder to Río La Plata/Toa Baja and Río Grande de Manatí channeling in equal parts). Bonds and notes are exempt from local taxes.

Legislative authorization ≠ bonds already sold or funds disbursed to projects. Primary: Act 43-2005 (LexJuris).

Source: LexJuris / Asamblea Legislativa. https://www.lexjuris.com/LEXLEX/Leyes2005/lexl2005043.htm