Puerto Rico Gov. Alejandro García Padilla signed legislation on Tuesday to allow the commonwealth to sell up to $1.2 billion in tax and revenue anticipation notes.
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The Senate passed the bill Monday, approving a measure the Puerto Rico House had passed in September. The law will set up a special fund to receive monies dedicated to repaying the notes. A third party trustee will oversee the fund.
Additionally, the law would allow disputes about the note to be heard in courts in New York City. It would have Puerto Rico waive immunity from suits concerning the TRAN.
The Government Development Bank for Puerto Rico is expected to sell the notes in the next few weeks. A GDB spokesman said earlier that he expected the TRAN to be $900 million.
