Puerto Rico Registered Investment Bond

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Multi-State
Control #:
US-01646BG
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Description

An investment bond (sometimes called a debenture) issued by a corporation is an instrument promising to repay a loan to a corporation, which is may be secured by corporate assets. The relation between a bondholder and the corporation is that of a creditor-debtor. The principal on the debt is paid on the maturity date. The obligations evidenced by the bond may be secured or unsecured.


A registered bond is one issued with the name of the owner printed on the face of the certificate. It can be transferred to another individual only with the owner's endorsement.

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FAQ

By 2015, Puerto Rico defaulted on a $58 million bond payment and by January 2016 had defaulted on another $174 million in bond debt. As a result, the value of Puerto Rico's municipal bonds (and any corresponding closed-end bond funds) has fallen dramatically, causing substantial losses for investors.

More than eight years after the Puerto Rico Electric Power Authority stopped paying its bonds and with most other Puerto Rico municipal issuers having since restructured their bonds, eight Puerto Rico bonds continue to pay in full and on time.

Registered bond. A bond whose issuer records ownership and interest payments. Differs from a bearer bond, which is traded without record of ownership and whose possession is the only evidence of ownership.

All bonds issued by the Government of Puerto Rico, or by its authority, shall be exempt from taxation by the Government of the United States, or by the Government of Puerto Rico or of any political or municipal subdivision thereof, or by any State, Territory, or possession, or by any county, municipality, or other ...

Bonds issued by the government of Puerto Rico and its subdivisions are exempt from federal, state, and local taxes (so called "triple tax exemption"). However, unlike other triple tax exempt bonds, Puerto Rican bonds uphold such exemption regardless of where the bond holder resides.

September 28, 2023 WASHINGTON ? U.S. Senator Roger Wicker, R-Miss., recently reintroduced the Puerto Rico Status Act, legislation which would provide Puerto Ricans the full range of options for a future referendum on the island's status as a commonwealth.

They are issued under resolutions adopted by COFINA's board of directors will be payable from and secured by a security interest created by the Resolution in a specified portion of the Puerto Rico Sales and Use Tax ("Pledged Sales Tax").

The crisis began in 2014 when three major credit agencies downgraded several bond issues by Puerto Rico to "junk status" after the government was unable to demonstrate that it could pay its debt. The downgrading, in turn, prevented the government from selling more bonds in the open market.

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Puerto Rico Registered Investment Bond