This is a Prior instruments and Obligations form, in addition to being made subject to all conveyances, reservations, and exceptions or other instruments of record, this assignment is made and assignee accepts this assignment subject to all terms, provisions, covenants, conditions, obligations, and agreements, including but not limited to the plugging responsibility for any well, surface restoration, or preferential purchase rights, contained in any contracts existing as of the effective date of this assignment and affecting the assigned property, whether or not recorded.
Puerto Rico Prior Instruments and Obligations are financial instruments and debts issued by the government of Puerto Rico. They are an essential part of the island's financial landscape and have garnered significant attention in recent years due to Puerto Rico's economic challenges. These instruments and obligations encompass a range of financing methods utilized by the Puerto Rican government to meet its funding requirements and maintain essential public services. They can be broadly categorized into two types: general obligation debt and revenue bonds. 1. General Obligation Debt: Puerto Rico issues general obligation bonds backed by the full faith and credit of the government. These bonds are regarded as the highest priority debt and are secured by the government's ability to levy taxes and use other revenue sources to repay them. They fund various government projects, infrastructure initiatives, and public services. 2. Revenue Bonds: Puerto Rico also issues revenue bonds, which are backed by specific revenue streams such as tolls, parking fees, or electricity charges. These bonds are secured by the revenue generated from the particular project or service they finance. Revenue bonds are often utilized to fund infrastructure development, including transportation systems, utilities, and public facilities. However, it is important to note that Puerto Rico has faced significant economic challenges in recent years, resulting in a debt crisis. As a result, the Puerto Rican government underwent a debt restructuring process in 2016, during which several entities, such as the Puerto Rico Electric Power Authority (PREP) and the Puerto Rico Aqueduct and Sewer Authority (PRADA), also faced financial difficulties. In response to the economic crisis, the Financial Oversight and Management Board for Puerto Rico, established under the Puerto Rico Oversight, Management, and Economic Stability Act (PROM ESA), was created in 2016. This board oversees the restructuring process and coordinates with various stakeholders to ensure the fair treatment of creditors and the stability of Puerto Rico's financial situation. Thus, Puerto Rico Prior Instruments and Obligations constitute the debt and financial obligations of the Puerto Rican government, including general obligation debt and revenue bonds, which have undergone significant restructuring efforts to address the island's economic challenges.
