SELECTION OF PROPONENTS

6.1 Disqualifying Events. The Project Committee shall treat as ineligible and shall not select a Proponent in accordance with this Regulation if it comes to the attention and knowledge of the Project Committee, after a Proponent has been qualified, that the Proponent or any affiliated Person has been convicted of any of the offenses set forth in Act 458-2000, as amended. Any Person by virtue of its participation in an RFQ or RFP process, authorizes the Authority to apply to the relevant competent governmental authority to obtain further information regarding the prospective Proponent or Proponent and in particular, details of convictions of the offenses listed in Act 428-2004. 6.2 Other Grounds for Disqualification. The Project Committee may treat a Proponent as ineligible, or decide not to select such Proponent or approve an Award of Contract to such Proponent on one or more of the following grounds, namely that such Proponent (or any of its members in the case of a consortium): (a) is bankrupt or insolvent, or shall have made a general assignment for the benefit of its creditors, or any proceeding shall have been instituted by or against it seeking to adjudicate it bankrupt or insolvent, or seeking liquidation or winding up, protection, composition of its debts or any similar relief under any law relating to bankruptcy, insolvency or reorganization or relief of debtors; (b) makes a formal, public announcement that it is unable to or intends not to pay its debts and obligations as they become due; (c) has been convicted or has pled guilty in Puerto Rico or in any jurisdiction within the United States or foreign jurisdictions, of any of the criminal offenses set forth in Act 428-2004, including not only the Proponent's but the Proponent's and the respective consortium -32- member's President(s), Vice-president(s), executive director(s) or chief executive officer(s), managing member(s), member(s) of the board(s) of directors, or persons occupying equivalent positions, as required under Act No. 56-2014. (d) has not fulfilled its obligations relating to the payment of taxes under the laws of the Commonwealth or the relevant jurisdiction in which it maintains its principal operations; or (e) has engaged in collusive acts or is guilty of serious misrepresentation in any information provided to the Authority or the Project Committee or otherwise provided to comply with this Regulation; (f) has experienced a material change in the nature of its business or its financial condition since qualifying to participate in the RFP; (g) fails to comply with any substantive requirement of the RFP; or (h) is otherwise in material breach of this Regulation. 6.3 Information as to Financial Condition. In assessing whether a prospective Proponent or Proponent meets any minimum standards of financial condition required by the Project Committee for the purpose of Section 4.4 of this Regulation and in selecting the Proponents under an RFQ or an RFP, the Authority may take into account any of the following information: (a) appropriate statements from the principal bank(s) of the Proponent; (b) financial statements for the previous three fiscal years; and (c) any other information acceptable to the Authority that would allow the Proponent to demonstrate its financial condition. -33- The Project Committee shall specify in the RFQ, the RFP or any other notice or invitation for a proposal, the financial information which the Proponent must provide to comply with the applicable minimum standards of financial condition.