reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 265 - Award in payment

In case of default by the mortgagor, the mortgagee shall promptly notify the Agency in writing. Upon receiving such notice the Agency shall determine the course of action to be followed by the mortgagee. When deemed practicable, and for a provisional period after the default or menace of default by the mortgagor, the Agency may make the corresponding payments on the mortgage to the mortgagee, which payments shall be repaid under the terms that the Agency may determine. When deemed advisable, the Agency may also revise the financing conditions. Once the mortgagee complies with all the requirements imposed by the Agency in accordance with the Mortgage Security Insurance Regulation, he shall be entitled to receive the benefits of the insurance hereby authorized.
History —June 25, 1965, No. 87, p. 216, § 5; July 23, 1974, No. 215, Part 2, p. 123, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 268 - Sale of foreclosed property

In case the proceeds of the sale of a foreclosed property exceed the liability covered by the Agency through payment of the insurance, said excess shall be covered by the Agency into the account of the Insured Mortgages Reserve Fund.
History —June 25, 1965, No. 87, p. 216, § 8; July 23, 1974, No. 215, Part 2, p. 123, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 270 - Guarantee by Commonwealth

The Commonwealth of Puerto Rico guarantees the payment of the principal of and interest on debenture bonds issued by the Agency for the purposes authorized by this chapter in an aggregate principal amount which shall not exceed seventy five million dollars ($75,000,000). The debenture bonds covered by this guaranty shall be those specified by the Agency, and a statement of such guaranty shall be set forth on the face of such debenture bonds. If at any time the funds deposited in the account of the Insured Mortgages Reserve Fund pledged for the payment of principal of and interest on such debenture bonds are insufficient for the payment of such principal and interest when they fall due, the Agency shall draw from any of its unencumbered funds the necessary sums for the payment of such principal and interest overdue, and shall direct that said sums be covered into the Insured Mortgages Reserve Fund; and should said sums be insufficient for the payment of such principal and interest when they fall due, the Secretary of the Treasury shall draw from the Redemption Fund, established by former §§ 401—403 of Title 13, or from any available funds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the sums so drawn be applied to such payments. The good faith and credit of the Commonwealth of Puerto Rico are hereby pledged for such payments.
History —June 25, 1965, No. 87, p. 216, § 10; May 3, 1973, No. 16, p. 54; July 23, 1974, No. 215, Part 2, p. 123, § 1; Dec. 5, 1975, No. 11, p. 961, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 271 - Guarantee by Commonwealth—Provisional loan insurance program

In addition to and as a guarantee separate from that established in § 270 of this title, the Commonwealth of Puerto Rico shall warrant the payment of the unpaid balance of the principal and interest on the mortgage loans or provisional financing secured by the Agency under the provisions of §§ 261—265, 268, and 270—271d of this title, or a part of such balance, as well as debenture bonds that may be issued by the Agency for such purposes, up to an amount which shall not exceed ninety million dollars ($90,000,000). The mortgage loans or provisional financing and the bonds with which payment shall be made of the guarantee authorized by this section shall bear a statement of such guarantee including the amount authorized in each case, on the face of such loans, financing or debenture bonds.
Said bonds shall be paid using the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal of and interest on such debenture bonds. If said funds are insufficient for the payment of such principal and interest upon maturity, the Agency shall draw on any of its unencumbered funds the necessary sums for the payment of such overdue principal and interest and shall direct that said sums be covered into the Special Reserve Fund. The Office of Management and Budget shall consign annually in the General Budget Joint Resolution any amounts needed for the payment of principal and interest on said bonds that cannot be paid as prescribed above. Furthermore, if necessary, the Secretary of the Treasury shall draw on the Redemption Fund, established by former §§ 402—404 of Title 13, or any available funds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the amounts so drawn be applied to such payments. The good faith and the credit of the Commonwealth of Puerto Rico are hereby pledged to such payments; Provided, That provisional financing secured under the provisions of this section shall be guaranteed by a special reserve fund to be established by the Agency, where the premiums to be charged for making mortgage loans or granting provisional financing shall be covered; And Provided, further, That the Agency shall establish through regulations the standards that will govern this program, which regulations shall have the force of law once approved by the Secretary of Housing and the Governor.
History —June 25, 1965, No. 87, p. 216, added as § 11 on Dec. 5, 1975, No. 11, p. 961, § 2; May 30, 1976, No. 72, p. 219, § 1; Sept. 30, 1986, No. 4, p. 798, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 271a - Guarantee by Commonwealth—Special reserve fund to guarantee program

The Agency shall establish a special reserve fund to guarantee the provisional loan insurance program authorized under § 271 of this title, and the Commonwealth hereby pledges to appropriate such funds as may be necessary to cover any net loss[es], if any, as a result of operations and obligations incurred under the above-mentioned insurance program; Provided, That the Agency shall be bound to render a report to the Governor of Puerto Rico through the Bureau of the Budget, on the amount and causes of any losses in the Special Reserve Fund, and the Bureau of the Budget, in turn, shall include the necessary legislative appropriations to cover such net losses in the proposed budget for the second fiscal year following the year in which such loss is incurred.
History —June 25, 1965, No. 87, p. 216, added as § 11-A on May 30, 1976, No. 72, p. 219, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 271b - Bonds, authorization

The Agency is hereby authorized to issue bonds from time to time for the purposes established in § 271 of this title, up to the maximum amount of ninety million dollars ($90,000,000), plus the capitalization of interest for a maximum term of one (1) year and the costs of said bond issue. Said bonds shall have a maximum maturity of twenty (20) years from the date of issue. The good faith and credit of the Commonwealth of Puerto Rico shall not be pledged for the payment of the principal and interest of such bonds. Once said bonds have been issued and the proceeds thereof used to pay up the provisional construction financing by virtue of § 271 of this title, the warranty of the Commonwealth of Puerto Rico and the authority of the Agency to issue debenture bonds under the provisions of § 271 shall be revoked.
Said bonds shall be paid using the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal and interest on the debenture bonds. If said funds are insufficient for the payment of such principal and interest upon maturity, the Agency shall draw on any of its unencumbered funds such sums needed for the payment of such overdue principal and interest and shall direct that said sums be covered into the Special Reserve Fund.
The sums needed for the payment of the principal and interest of said bonds that cannot be paid in the manner previously prescribed are hereby appropriated to the Agency from unencumbered funds in the Commonwealth Treasury. The Office of Management and Budget shall annually consign said sums in the General Budget Joint Resolution beginning with fiscal year 1987-88 to cover the total payment on said bonds.
History —June 25, 1965, No. 87, p. 216, added as § 11-B on Sept. 30, 1986, No. 4, p. 798, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 271c - Plan to minimize losses

In the case of loans whose unpaid balances and interest must be paid by the Agency through a bond issue or by using the Reserve Fund, the Agency must adopt a plan of action directed towards minimizing the incurred losses. Among other things, it shall ensure that inadmissible claims due to violations of regulations are not paid, and it shall make every effort to recoup the losses of the persons who served as guarantors, and to dispose of the assets to be acquired in order to recover their highest value possible.
The Agency according to its powers shall exercise the discretion necessary to decide upon the course of action to be followed to achieve the above objectives in each project that suffers a loss. The Agency shall support its decisions with cost-benefit analyses, appraisals, legal analyses, financial studies and any other mechanism it considers appropriate and necessary to justify its decision and show that it has acted with the highest degree of diligence and in harmony with the interest of the Commonwealth to provide housing.
History —June 25, 1965, No. 87, p. 216, added as § 11-C on Sept. 30, 1986, No. 4, p. 798, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 271d - Quarterly reports

After the effective date of this act and no later than the fifteen (15) days after the end of each quarter, the Agency shall submit a quarterly report to the Governor of Puerto Rico, to the Office of Management and Budget and to the Legislature on each loan paid by means of the unsecured bond issue authorized by §§ 271 et seq. of this title. Said reports shall specify the following:
(1) Balance of each loan when liquidated, itemized by principal and interest.
(2) Evidence of the source of the payments made, including guaranteed evidence that the mortgagee made the collection procedures required by regulations.
(3) Actions taken to recoup the losses of the guarantors and the amounts recovered, if any.
(4) Description of the assets recovered and an itemization of their value.
(5) Current costs of conservation, management, maintenance, security, insurance, losses due to vandalism and any others, with regard to each project for the quarter covered by the report on a cumulative basis.
(6) Interest paid to date on bonds.
(7) List of liquidated assets indicating the sale price and criteria or standards observed in such liquidation or sale.
(8) An itemization of the actual loss incurred in each project, after charging subsequent costs to the purchase of the project by the Agency, and credits by the sale of assets.
(9) Any other pertinent information related to the disposition of the project.
(10) Evidence of compliance with the provisions of § 271c of this title in regards to the diligent administration and disposition of the loans and the minimization of losses.
History —June 25, 1965, No. 87, p. 216, added as § 11-D on Sept. 30, 1986, No. 4, p. 798, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 19 - Insured Mortgages Reserve Fund (§§ 261 — 272) › § 272 - Exemption from payment and cancellation of internal revenue stamps

The mortgage modification deeds executed to modify the terms of any mortgage insured under the mortgage insurance established by virtue of this chapter, so as to temper the same with the terms established by the Agency through regulations, shall be exempted from the payment and cancellation of internal revenue stamps and shall be recordable in the Property Registry free of charge as regards the fees provided under §§ 1767a—1767c of Title 30. [Likewise, the second mortgage deeds that are granted under the program authorized by § 145 of Title 13, shall be exempt from the payment and cancellation of the internal revenue stamps and shall be recordable in the Property Registry free of charge as regards to the fees provided under §§ 1767a—1767c of Title 30.] Furthermore, the provisions of § 2131(3)(a) of this title, shall apply to all deeds mentioned in this section.”
History —June 25, 1965, No. 87, p. 216, added as § 12 on Mar. 9, 2009, No. 9, § 17.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 20 - Statement of Interest Paid (§§ 275 — 278) › § 275 - Statement

All loan, banking and credit institutions, as well as all commercial entities that sell merchandise on the installment plan and charge interest therefor, and whose gross volume of sales exceeds one hundred thousand dollars ($100,000), shall send each client a statement of the amount of interest he has paid during the previous calendar year, to his last known address, on or before February 28 of each year.
History —July 13, 1978, No. 39, p. 501, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 20 - Statement of Interest Paid (§§ 275 — 278) › § 276 - Complaints

The client of a loan, banking or credit institution or a commercial entity which sells merchandise on the installment plan and charges interest therefor, whose gross volume of sales exceeds one hundred thousand dollars ($100,000), who does not receive a statement of interest paid, within the term established in § 275 of this title, shall be entitled to present a complaint before the Department of Consumer Affairs to enforce compliance of this chapter. The client’s complaints shall be governed by the adjudication procedures in the Department of Consumer Affairs Organic Act, §§ 341 et seq. of Title 3.
History —July 13, 1978, No. 39, p. 501, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 20 - Statement of Interest Paid (§§ 275 — 278) › § 277 - Administrative fines

The Department of Consumer Affairs may impose administrative fines on the institutions that violate this chapter or the regulations thereunder, pursuant to the provisions of § 341q of Title 3.
History —July 13, 1978, No. 39, p. 501, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 20 - Statement of Interest Paid (§§ 275 — 278) › § 278 - Petition for reconsideration

Any loan, banking or credit institution, or commercial entity which sells merchandise on the installment plan, bound by the provisions of this chapter, which is adversely affected by a decision of the Secretary, may file a petition for reconsideration, and prosecute an appeal for review, pursuant to §§ 341o and 341p of Title 3.
History —July 13, 1978, No. 39, p. 501, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 31 - General Provisions and Definitions (§§ 301 — 305) › § 301 - Short title; application

Sections 301—503 of this title shall be known as the “Trust Company Law” and shall be applicable to all corporations heretofore or hereafter organized for the purpose of engaging in trust-company business in Puerto Rico.
History —Apr. 23, 1928, No. 40, p. 234, § 1, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 31 - General Provisions and Definitions (§§ 301 — 305) › § 302 - Definitions

The term “trust company”, for the purposes of §§ 301—503 of this title, means a domestic corporation formed for the purpose of taking, accepting and executing such trusts as may lawfully be committed to it, acting as trustee in the cases prescribed by law, receiving deposits of money and other personal property, and issuing its obligations therefor, and lending money on real or personal securities.
The term “foreign trust company”, for the purposes of §§ 301—503 of this title means a corporation organized for the purpose of engaging in trust-company business, under the laws of another territory or state, or of the United States, or of a foreign country, whether or not operating a trust company at the place of its incorporation.
History —Apr. 23, 1928, No. 40, p. 234, § 2, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 31 - General Provisions and Definitions (§§ 301 — 305) › § 303 - Compliance with requirements; banking business

For a corporation to engage in trust-company business in Puerto Rico, compliance with the requirements of §§ 301—503 of this title shall first be necessary; and engaging in such business without compliance therewith shall be punishable as hereinafter provided. Any trust company that is organized on or before the date of approval of this act and engaged in the banking business in Puerto Rico shall comply with the provisions of the “Banking Law of Puerto Rico” (§§ 1 et seq. of this title) regarding such banking business.
History —Apr. 23, 1928, No. 40, p. 234, § 3; June 26, 1980, No. 14, p. 900, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 31 - General Provisions and Definitions (§§ 301 — 305) › § 304 - Name of company; use of word “trust”

The name of every trust company formed under §§ 301—503 of this title shall contain the word “trust”, in either Spanish or English, but shall not be that of any other existing corporation of Puerto Rico without the specific consent of such existing corporation; Provided, however, That if such trust company shall be incorporated for the purpose of succeeding any other trust company of Puerto Rico, such new trust company may assume the name of the trust company which it is intended to succeed; and Provided, further, That hereafter no corporation shall be organized for the purpose of carrying on a trust-company business in Puerto Rico except under §§ 301—503 of this title, and no company hereafter organized under any other act shall use the word “trust” as a part of its name.
History —Apr. 23, 1928, No. 40, p. 234, § 4, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 33 - Incorporation and Organization (§§ 331 — 333) › § 332 - Filing of articles; certificate of incorporation

Upon subscribing and acknowledging the articles of incorporation as hereinbefore provided and upon submitting the two copies of the same to the Secretary of State of Puerto Rico, and payment of the proper filing fees, and upon the issuance by the Secretary of State of Puerto Rico, and under his seal, of his certificate that the said articles containing the statements required by the foregoing section have been filed in the Department of State, the existence of the trust company named in the said articles of incorporation shall begin, and from and after the date of such filing said trust company shall be and shall constitute a body corporate under the name set forth in the said articles, subject, however, to dissolution as §§ 301—503 of this title provided.
Upon the issuance by the Secretary of State of Puerto Rico of his certificate, as hereinbefore provided, he shall so notify the Secretary of the Treasury of Puerto Rico, and at the same time shall transmit to him the duplicate copy of the articles of incorporation.
The articles of incorporation filed in accordance with the provisions of §§ 301—503 of this title, or a copy thereof duly legalized by the Secretary of State of Puerto Rico, shall be prima facie evidence of the facts therein contained.
History —Apr. 23, 1928, No. 40, p. 234, § 7, eff. 90 days after Apr. 23, 1923.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 33 - Incorporation and Organization (§§ 331 — 333) › § 333 - Commencement of business

From the moment the corporate existence of the trust company begins, as provided in § 332 of this title, it shall have the power to elect officers and transact such other business related to its organization. But such trust company shall transact no other business until:
(1) All of its capital stock shall have been fully paid in cash and affidavit stating that it has been so paid, subscribed and sworn to by its two principal officers, shall have been filed in the Department of State of Puerto Rico and a certified copy thereof filed in the office of the Secretary of the Treasury of Puerto Rico.
(2) It shall have filed in the Department of State a list of its stockholders, verified by two of its principal officers, giving the name, residence, post office address and number of shares of stock held by each stockholder.
(3) It shall have made the deposit required by § 361 of this title with the Secretary of the Treasury of Puerto Rico.
(4) The Secretary of State of Puerto Rico shall have duly issued to it the certificate specified in § 332 of this title.
(5) It has obtained a license issued by the Secretary of the Treasury through the payment of five hundred dollars ($500) for each office to be established in the Commonwealth of Puerto Rico. All licenses shall become effective by paying a fee of five hundred dollars ($500) for each office that is in operation no later than January 10 of each year, unless said license is suspended or revoked by the Secretary of the Treasury or waived by the concessionaire.
History —Apr. 23, 1928, No. 40, p. 234, § 8; June 26, 1980, No. 14, p. 900, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 361 - Legal reserve

Every trust company shall, until an order of the Supreme Court of Puerto Rico is obtained declaring the business of the trust company settled and closed, maintain as deposit with the Secretary of the Treasury of Puerto Rico, interest-bearing bonds of the Government of the Commonwealth of Puerto Rico or of a political subdivision thereof, whose par value amounts to ten percent (10%) of its paid-up capital. Such bonds shall be registered in the name of the Secretary of the Treasury of Puerto Rico in trust for the creditors and depositors of such trust company, and shall be subject to sale and transfer, and the proceeds thereof shall be at the disposal of the Secretary of the Treasury only on the order of a court of competent jurisdiction. As long as the trust company continues to be solvent and complies with the laws of Puerto Rico, the Secretary of the Treasury may permit it to collect the interest on said bonds so deposited, and from time to time examine, compare and exchange the same for others acceptable as deposit, as provided herein.
History —Apr. 23, 1928, No. 40, p. 234, § 9; June 26, 1980, No. 14, p. 900, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 362 - Legal reserve—For deposits

Every trust company receiving deposits of money subject to check or payable on demand shall at all times comply with the provisions of the “Banking Law of Puerto Rico” (§§ 1 et seq. of this title) as to legal reserve.
History —Apr. 23, 1928, No. 40, p. 234, § 10, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 364 - Contracts, limitations

No trust company shall have any right or power to make any contract, or to accept or execute any trust whatever, which it would not be lawful for any individual to make, accept or execute.
History —Apr. 23, 1928, No. 40, p. 234, § 12, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 365 - Possession of real property

All real property purchased by any trust company or acquired by it in settlement of debts due it, shall be conveyed to it directly by name and the conveyance recorded in the office of the proper recording officer of the place in which such real property is located. Every parcel of real estate purchased or acquired by any trust company shall be sold by it within five (5) years of the date on which it shall have been acquired unless there shall be a building thereon occupied by the trust company as an office.
History —Apr. 23, 1928, No. 40, p. 234, § 13, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 367 - Designated depositaries of money

No trust company shall receive funds and moneys paid or brought into a court of Puerto Rico except it be designated by the Secretary of the Treasury of Puerto Rico a depositary of moneys paid into court. Nothing in this section contained shall, however, be deemed to preclude the deposit, in any trust company organized under the laws of Puerto Rico, of any funds pursuant to the order or direction of a court of any other territory or state or of the United States making such trust company a depositary of such funds.
History —Apr. 23, 1928, No. 40, p. 234, § 15, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 368 - Book entries, prescribed method

(a) No trust company shall by any system of accounting or any device of bookkeeping, directly or indirectly enter any of its assets upon its books in the name of any other individual, partnership, unincorporated association or corporation, or under any title or designation that is not truly descriptive thereof.
(b) The stocks, bonds and other interest-bearing corporate securities purchased by a trust company shall be entered on its books at the actual cost thereof, and for the purpose of calculating the undivided profits applicable to the payment of dividends, such stocks and securities shall not be estimated at a valuation exceeding their present cost as determined by amortization, that is, by deducting from the cost of any such stock or security purchased for a sum in excess of the amount payable thereon at maturity, and charging to profit and loss, a sufficient sum to bring it to par at maturity, or adding to the cost of any such stock or security purchased at less than the amount payable thereon at maturity, and crediting to profit and loss, a sufficient sum to bring it to par at maturity; but nothing herein contained shall prevent a trust company from carrying such stocks, bonds and other interest-bearing corporate securities on its books at their market value.
(c) No trust company shall, except with the approval in writing of the Secretary of the Treasury of Puerto Rico, enter or at any time carry on its books the real estate and the building or buildings thereon, used by it as its place or places of business, at a valuation exceeding their actual cost to such trust company.
(d) Every trust company organized under the laws of Puerto Rico shall conform its method of keeping its books and records to such orders in respect thereto as shall be made and promulgated by the Secretary of the Treasury of Puerto Rico. Any trust company that refuses or neglects to obey such order or orders shall be subject to a penalty of one hundred dollars ($100) for each day it so refuses or neglects.
(e) Every trust company organized under the laws of Puerto Rico holding any funds or moneys paid into court shall keep a book or books in which it shall make an exact account thereof. Such book or books shall state the name of the court, the title of the case, the date of receipt, from whom received, the amount of money, if any, and a description of the securities or other property received, if any, and each addition of interest; also the date and description of each order for payment and the dates and amounts of payments thereunder and to whom paid; also an account of each change of investment, if any.
History —Apr. 23, 1928, No. 40, p. 234, § 16, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 369 - Branch offices

No trust company or any officer or director thereof shall transact its usual business at any place other than its principal place of business, except that with the written approval of the Secretary of the Treasury of Puerto Rico a trust company may open and occupy a branch office or branch offices in one or more cities in Puerto Rico; provided, that the actual paid-in capital of such trust company shall exceed by the sum of one hundred thousand dollars ($100,000) the amount required by § 331, subsection (3) of this title, for each branch so opened.
History —Apr. 23, 1928, No. 40, p. 234, § 17, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 371 - Deposits by or for minors

When any deposit shall be made by or in the name of any minor, the same shall be held for the exclusive right or benefit of such minor, and free from the control or lien of all other persons, except creditors, and shall be paid, together with the interest thereon, to the person in whose name the deposit shall have been made, and the receipt or acquittance of such minor shall be a valid and sufficient release and discharge for such deposit or any part thereof to the trust company.
History —Apr. 23, 1928, No. 40, p. 234, § 19, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 372 - Interpleader of other claimants in actions on deposits

In all actions against any trust company to recover moneys on deposit therewith if there be any person or persons, not parties to the action, who claim the same fund, the court in which the action is pending, may, on the petition of such trust company, and upon eight (8) days’ notice to the plaintiff and such claimants, and without proof as to the merits of the claim, make an order amending the proceedings in the action by making such claimants parties defendant thereto; and the court shall thereupon proceed to determine the right and interests of the several parties to the action in and to such funds. The remedy provided in this section shall be in addition to and not exclusive of that provided by the Code of Civil Procedure.
The funds on deposit which are the subject of such action may remain with such trust company to the credit of the account until final judgment therein and be entitled to the same interest as other deposits of the same class, and shall be paid by such trust company in accordance with the final judgment of the court; or the deposit in controversy may be paid into court to await the final determination of the action; and when the deposit is so paid into court the trust company shall be struck out, as a party to the action, and its liability for such deposit shall cease.
The costs in all actions against a trust company to recover deposits shall be in the discretion of the court, and may be charged against the fund affected by the action.
History —Apr. 23, 1928, No. 40, p. 234, § 20, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 373 - Legal interest allowed

A trust company may take, receive, reserve and charge on every loan and deposit made, or upon any note, bill of exchange or other evidence of debt, interest at such rate, as shall not be in violation of law; and such interest may be taken in advance, reckoning the days for which the note, bills or evidence of debt has to run.
History —Apr. 23, 1928, No. 40, p. 234, § 21, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 35 - Powers and Limitations (§§ 361 — 374) › § 374 - Penalties

Every trust company, its officers, directors or employees shall be subject to the same penalties provided for banks, their officials, directors and employees in the act entitled the “Banking Law”, §§ 1 et seq. of this title, in its amendments as to:
(a) Usury;
(b) falsely certifying checks;
(c) embezzlement, misappropriation or willful misapplication of funds or credits, or
(d) receiving deposits when insolvent.
History —Apr. 23, 1928, No. 40, p. 234, § 22; June 26, 1980, No. 14, p. 900, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 37 - Earnings and Surplus Fund (§§ 401 — 403) › § 401 - Determination of earnings

(a) To determine the amount of gross earnings of a trust company for a dividend period the following items may be included:
(1) All earnings actually received during such period, less interest accrued and unpaid included in the last previous calculation of earnings.
(2) Interest accrued and unpaid upon debts owing to it secured by collateral as authorized by this section upon which no default of more than one (1) year exists and upon corporate stocks, bonds, or other interest-bearing obligations owned by it upon which no default exists.
(3) The sums added to the cost of securities purchased for less than par as a result of amortization, provided the market value of such securities is at least equal to their present cost as determined by amortization.
(4) Any profits actually received during such period from the sale of securities, real estate or other property owned by it.
(5) Sums recovered on items previously charged off, and any amount allowed by the Secretary of the Treasury of Puerto Rico on account of assets previously disallowed and charged off.
(6) Provided the Secretary of the Treasury of Puerto Rico shall have approved, and only to the extent of such approval, any increase in the book value of an office building owned by it, which building or a portion thereof is used by it as a place of business.
(b) To determine the amount of net earnings for such dividend period the following items shall be deducted from gross earnings:
(1) All expenses paid or incurred, both ordinary and extraordinary, in the transaction of its business, the collection of its debts, and the management of its affairs, less expenses incurred and interest accrued upon its debts deducted as the last previous calculation of net earnings for dividend purposes.
(2) Interest paid, or accrued and unpaid, upon debts owing by it.
(3) The amount deducted through amortization from the cost of corporate stocks, bonds or other interest-bearing obligations purchased above par in order to bring them to par at maturity.
(4) All losses sustained by it. In the computation of such losses all debts owing to it shall be included upon which no interest shall have been paid for more than two (2) years or on which a judgment has been recovered which shall have remained unsatisfied for two years; and such other assets as shall have been disallowed by the Secretary of the Treasury of Puerto Rico.
The balance thus obtained shall constitute the net earnings of such trust company for such period.
History —Apr. 23, 1928, No. 40, p. 234, § 23, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 37 - Earnings and Surplus Fund (§§ 401 — 403) › § 402 - Surplus fund

Every trust company shall create a fund to be known as a surplus fund. Such surplus fund may be created or increased by contributions, by transfers from undivided profits, or from net earnings. Such surplus fund, up to twenty percent (20%) of the capital of the trust company, shall be used only for the payment of losses in excess of undivided profits.
History —Apr. 23, 1928, No. 40, p. 234, § 24, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 37 - Earnings and Surplus Fund (§§ 401 — 403) › § 403 - Dividends

When the net earnings of a trust company have been determined at the close of a dividend period as provided in § 401 of this title, if its surplus fund does not equal twenty percent (20%) of the trust company’s capital, one-tenth (1/10) of such net earnings shall be credited to the surplus fund or so much thereof, less than one-tenth (1/10), as will make such fund equal twenty percent (20%) of such capital. The balance of such net earnings, or the entire amount thereof if such fund equals such twenty percent (20%), may be credited to the trust company’s profit-and-loss account; or, if its expenses and losses for such dividend period exceed its gross earnings, such excess shall be charged to its profit-and-loss account. The credit balance of such amount shall constitute the undivided profits at the close of such dividend period, and shall be available for dividends. The directors of any trust company may annually, semi-annually or quarterly, but not more frequently declare such dividends as they shall judge expedient from such undivided profits. No trust company shall declare, credit or pay any dividends to its stockholders until it shall have made good any existing impairment of its capital and any existing encroachment on its reserves required to be maintained against deposits.
History —Apr. 23, 1928, No. 40, p. 234, § 25, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 432 - Monthly report; liquidation for failure to make

Every trust company shall make written report of its condition on the last day of each month, in such form as may be prescribed by the Secretary of the Treasury of Puerto Rico, to whom such report shall be transmitted within the first ten (10) days of the next succeeding month, Sundays and legal holidays not included. Such reports shall be subscribed by the president or managing officer of such trust company, verified by his oath stating that the same is true and correct in all respects. If any trust company shall fail to make such report within the time herein prescribed, such delinquent trust company shall be subject to an administrative fine of five dollars ($5.00) for each day that such report is delayed. If any trust company shall fail to make a report for two (2) consecutive months, the Secretary of Justice on request of the Secretary of the Treasury of Puerto Rico, shall institute an action in the proper court, and if the court shall find that the charges made are true it shall decree the dissolution and liquidation of such trust company. If any director, officer or employee of any trust company shall knowingly make or cause to be made false entry in such monthly report, with the intention of damaging or defrauding the trust company or any company, person or corporation, or of deceiving any officer of the trust company, or any examiner or the Secretary of the Treasury of Puerto Rico, such director, officer or employee shall be deemed guilty of a felony and upon conviction thereof shall be punished by imprisonment for a term of not less than one nor more than five years.
History —Apr. 23, 1928, No. 40, p. 234, § 29, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 433 - Publication of annual statement

Every trust company shall publish every year in a newspaper of general circulation in the locality where it is established, a report of its financial condition, and any such trust company failing to make such publication shall be subject to a fine of one hundred dollars ($100) for each offense so committed.
History —Apr. 23, 1928, No. 40, p. 234, § 30, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 434 - Examination of financial status by directors

It shall be the duty of the board of directors of each trust company during the months of March and April and during the months of September or October in every year to examine, or to cause a committee of at least three of its members to examine fully the books, papers and affairs of the trust company, and the loans and discounts thereof, and particularly the loans or discounts made directly or indirectly to its officers or directors, or for the benefit of such officers or directors or for the benefit of other corporations of which such officers or directors are also officers or directors, or in which they have a beneficial interest as stockholders, creditors, or otherwise with the special view of ascertaining their safety and present value, and the value of the collateral security, if any, held in connection therewith, and into such other matters as the Secretary of the Treasury of Puerto Rico may require. Such directors shall have the power to employ such assistance in making such examination as they may deem necessary.
History —Apr. 23, 1928, No. 40, p. 234, § 31, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 435 - Reports of examinations

On or before the fifteenth (15th) day of the month of May or November succeeding any examination made pursuant to the requirements of § 434 of this title, a report in writing thereof, sworn to by the directors making the same, shall be made to the board of directors of such trust company and placed on file in said trust company, and a duplicate thereof filed in the Department of the Treasury of Puerto Rico. Such report shall particularly contain a statement of the assets and liabilities of the trust company examined, as shown by the books, together with such deductions from the assets and the addition of such liabilities, direct, indirect, contingent or otherwise, as such directors or committee, after such examination, may find necessary in order to determine the true condition of the trust company. It shall also contain a statement showing, in detail, every known liability to such trust company direct, indirect, contingent or otherwise, of every officer or director thereof and of every corporation in which any such officer or director owns to the amount of twenty-five percent (25%) of the total outstanding stock, or of which any such officer or director is also an officer or director. It shall also contain a statement, in detail, of loans, if any, which in their opinion are doubtful or worthless, together with their reasons for so regarding them; also a statement of loans made on collateral security which in their opinion are insufficiently secured, giving in each case the amount of the loan, the name and market value of the collateral, if it has any market value, and, if not, a statement of this fact, and its actual value as nearly as possible. Such report shall also contain a statement of overdrafts, of the names and amounts of such as they consider doubtful or worthless, and a full statement of such other matter as would affect the solvency or soundness of the institution. If the directors of any trust company shall fail to make, or to cause to be made, or to file such report of examination in the manner and within the time specified, such trust company shall forfeit to the Commonwealth of Puerto Rico one hundred dollars ($100) for every day such report shall be delayed.
History —Apr. 23, 1928, No. 40, p. 234, § 32, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 436 - Report of unclaimed deposits, dividends, or interest

On or before the tenth day of September of each year, every trust company shall make a written report to the Secretary of the Treasury of Puerto Rico, verified by the oath of the president or vice-president and any other principal officer of the trust company, which shall contain a true and correct statement of all deposits made with the trust company, and all dividends declared and interest accrued upon any of its stock or evidence of indebtedness, which on the first day of August preceding such report, amounted to fifty dollars ($50) or over and had not been claimed by any person or persons authorized to receive the same during the next five (5) years. Such statement shall set forth the date of each such deposit, its amount and the last-known place of residence or post-office address of the person making it, the name of each person in whose favor any such dividend may have been declared or any such interest may have accrued, the date and amount of such dividends or interest, and the number or value of the shares, or what type of documents evidence the indebtedness of such trust company on which said dividends or interest were declared or approved. In case any such trust company shall have held no such deposits, dividends or interest at said date, it shall, on the specified date, make a written report to the Secretary of the Treasury of Puerto Rico so stating, which report will be verified under oath as hereinbefore provided. No deposits, dividends, or interest shall be termed unclaimed within the meaning of this section, if it appears from the books of the trust company or from other written evidence on file, that the person or persons authorized to receive them have no knowledge thereof. Every such trust company which reports as unclaimed any deposits, dividends or interest under the provisions of this section shall, at its own expense, cause to be published once each week for two consecutive weeks in a newspaper, designated by the Secretary of the Treasury of Puerto Rico, a true copy of such report, and on or before the first day of October in each year, shall file evidence before the Secretary of the Treasury of Puerto Rico, by affidavit, of such publication. Any trust company that fails to make any report or to file any affidavit of publication required by this section shall be subject to an administrative fine of one hundred dollars ($100) for each day such report or the filing of such affidavit of publication shall be so delayed or withheld, unless the time therefor shall have been extended by the Secretary of the Treasury of Puerto Rico.
History —Apr. 23, 1928, No. 40, p. 234, § 33; June 26, 1980, No. 14, p. 900, § 7.