reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 64 - Reestablishment of Credit Agencies (§§ 630 — 630x) › § 630x - Existing businesses

Any person who at the date of effectiveness of this act is operating a credit repair business may continue to do so, but shall request a license therefor from the Office of the Commissioner of Financial Institutions within thirty (30) days from the date of effectiveness of this act. Such persons shall comply with all the requirements imposed by law or regulations for obtaining a license within sixty (60) days from the date of effectiveness of this act.
History —Aug. 31, 2004, No. 236, § 28, eff. 60 days after Aug. 31, 2004.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 65 - Credit Unions (§§ 651 — 697) › § 695 - Deductions from salaries of government personnel—Authorization

The officials and employees of the commonwealth government and municipal governments of the Commonwealth of Puerto Rico who are members of a credit union organized under Act No. 10, approved July 1, 1947, as amended by Act No. 153, approved April 29, 1949, may authorize the head of the department or dependency where they work to deduct from their salaries a certain amount for the purchase of shares and the payment of loans and interest thereon, owing by them to the credit union to which they belong; and, in such cases, the said heads of departments or dependencies shall, at the time of making the monthly, fortnightly or weekly payrolls covering the salaries of said officials and employees, deduct therefrom the corresponding amount authorized to be deducted by such officials and employees.
History —May 3, 1951, No. 204, p. 532, § 1; June 17, 1955, No. 76, p. 280, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 65 - Credit Unions (§§ 651 — 697) › § 696 - Deductions from salaries of government personnel—Deduction by officials responsible for payment

The officials responsible for the payment of the salaries of officials and employees of the commonwealth government and municipal governments of the Commonwealth of Puerto Rico shall deduct from the salaries of such officials and employees who have so requested from the head of the department or dependency where they work, the corresponding amount for the payment of the shares acquired and payment of the loans and interest thereon owing by them to such credit union.
History —May 3, 1951, No. 204, p. 532, § 2; June 17, 1955, No. 76, p. 280, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 65 - Credit Unions (§§ 651 — 697) › § 697 - Deductions from salaries of government personnel—Payment to credit unions

The officials responsible for making the deduction mentioned in § 696 of this title shall place at the disposal of the treasurer of each credit union to which said officials and employees belong, by check drawn to the order of such credit union, the amounts so deducted from the salaries of such officials and employees.
History —May 3, 1951, No. 204, p. 532, § 3; June 17, 1955, No. 76, p. 280, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 751 - Creation

The creation of a corporation to operate under the name of “Cooperative Bank of Puerto Rico”, hereinafter called the Bank, is hereby authorized.
History —June 21, 1966, No. 88, p. 257, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 752 - Purpose

The purpose of the Bank is to promote the general welfare of the community by the proper canalization of the resources of cooperative enterprises and their members, in addition to other resources the institution may raise, in order to meet the credit requirements of the cooperative organizations, their members, and the community in general; to facilitate the creation of new cooperatives and other enterprises; and to expand and improve those already existing.
To attain these purposes, the Bank shall pay particular attention to the following activities:
(a) To encourage and facilitate regular saving on the part of cooperative members and other persons.
(b) To solicit the financial resources of cooperative organizations in order to canalize same for their own benefit and for the benefit of cooperative members and the community in general.
(c) To help meet the personal and mortgage credit requirements of cooperative members and other persons.
(d) To help finance housing, educational, cultural, and other programs that may be developed by cooperatives and other organizations.
(e) To contribute toward stepping up our economic development through the granting of credit, particularly intermediate and long-term credit, to cooperative and noncooperative production, service, and distribution enterprises operating in Puerto Rico, and through investment in securities issued by such enterprises.
(f) To develop, on its own account or in collaboration with other public and private entities, cooperative and other educational programs aimed at encouraging among the citizenry a wise and far-seeing handling of their finances.
(g) To orient its activities and services so that they will redound in the strengthening of the cooperative enterprises and their central bodies.
History —June 21, 1966, No. 88, p. 257, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 753 - Principal office, branches or agencies

The principal office of the Bank shall be in San Juan, Puerto Rico. Those branches or agencies that the Board of Directors of the Bank may deem necessary may be established with the approval of the Commissioner of Financial Institutions.
History —June 21, 1966, No. 88, p. 257, § 3; Sept. 25, 1992, No. 79, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 754 - Minimum capital

The minimum capital required for the establishment of the Bank shall be five hundred thousand dollars ($500,000), which must be paid in before the institution shall commence operations as a bank in Puerto Rico.
History —June 21, 1966, No. 88, p. 257, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 755 - Types of stock

The capital shall consist of common stock which shall have a one hundred dollar ($100) par value.
(a) Common stock shall have the right to vote as provided in §§ 756 and 760 of this title, and shall be held by cooperative organizations operating in Puerto Rico under Commonwealth or federal laws which maintain not less than [fifteen percent] (15%) of the total amount of funds redeposited in the Bank available to be deposited in institutions or dependencies in or outside of Puerto Rico, or which are available to be invested in liquid assets or available to be invested in any other type of investment in which cooperatives can invest their funds by law. In addition, upon the Commissioner of Financial Institutions’ approval of the Bank Offering for the issue of additional capital, the cooperatives shall acquire a minimum of shares for an amount equal to five percent (5%) of the fifteen percent (15%) redeposit requirement referred to in this section, up to a maximum of ten percent (10%) with the prior authorization of the Commissioner of Financial Institutions. It is also provided that at not time shall the investment required herein be greater than ten percent (10%) of the issued or outstanding voting stock of the Bank.
(b) No cooperative may invest in Bank stock a sum in excess of the amount that Act No. 6 of 15 of january of 1990, regarding Cooperative and Credit savings Unions, allows it to invest in certificates of deposits and liquid assets.
History —June 21, 1966, No. 88, p. 257, § 5; Sept. 25, 1992, No. 79, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 756 - Voting

In the exercise of the right to vote, voting by proxy is hereby forbidden, except as provided in § 760 of this title.
Each stockholder shall be entitled to one vote per share acquired.
History —June 21, 1966, No. 88, p. 257, § 6; Sept. 25, 1992, No. 79, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 757 - Application for incorporation

Through the initiative of the Administrator of the Cooperative Development Administration in collaboration with the central bodies of the cooperative movement, eleven (11) or more persons residing in Puerto Rico and who are officials or directors of central bodies and second- and first-class cooperative organizations and members of the latter operating in Puerto Rico, may apply to the Secretary of the Treasury for authorization to establish this Bank by filing an application containing:
(a) The name and address of each one the incorporators and the number of shares of stock subscribed by them;
(b) the exact address of the place where the offices of the Bank will be located;
(c) the authorized capital stock to be had by the institution, and the number of shares into which it will be divided;
(d) the term of its existence, which may be perpetual, and
(e) any other information which the Secretary of the Treasury may deem it proper to require.
The Secretary of the Treasury shall verify with the Administrator of the Cooperative Development Administration the cooperative affiliation and moral solvency of the incorporators for the purpose of determining their legal capacity pursuant to the provisions of this chapter. Once the Secretary of the Treasury shall have approved the application for incorporation, the same shall be filed with the Department of State for the formal incorporation of the institution.
History —June 21, 1966, No. 88, p. 257, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 758 - Commencement of operations

The Bank shall commence operations as soon as the Secretary of the Treasury shall certify that all organization requirements established in this chapter and applicable regulations have been complied with.
History —June 21, 1966, No. 88, p. 257, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 759 - Board of directors

(a) During the period comprised between the day it commences operations and the date on which its first Board of Directors is elected, the business of the Bank shall be managed and its corporate powers exercised by a Provisional Board of Directors elected by the incorporators.
(b) Said Board shall adopt, at the first meeting held, provisional bylaws for the internal government of the Bank.
(c) Within the term of one hundred and eighty (180) days, from the commencement of operations of the Bank, the provisional Board of Directors shall call the first Regular General Assembly of Stockholders.
(d) The first Regular General Assembly of Stockholders shall approve the bylaws which thereafter shall govern the internal operations of the Bank. Any amendment to said bylaws must be approved by a general assembly of stockholders.
(e) The first Regular General Assembly of Stockholders shall elect nine (9) members of the Board of Directors of the Bank. Among the members of the Board of Directors there shall not be more than one member per cooperative that is a stockholder.
(f) Three of the persons elected to the first Board of Directors shall hold office for one year, three (3) for two (2) years and the other three (3) for three (3) years. Persons subsequently elected members of the Board of Directors shall hold office for a term of three (3) years. No director shall be elected for more than three (3) consecutive three (3) year terms. No person who has been removed from his/her office, through an administrative or judicial order, as a member of the Board of Directors of a cooperative or as an official of a cooperative, or who has been convicted of committing a felony or a misdemeanor that implies moral turpitude or who has been removed from public office, may be a Director. Nor shall any person be a member of the Board of Directors who, in turn, holds office as an official or director of any other noncooperative financial institution, or who is an employee or an advisor of any of the regulatory agencies of Puerto Rico, or who is a stockholder in any other banking institution, or who is an advisor of an affiliate of any other banking institution or of any of the subsidiaries thereof, or is a competition or potential competition in any business which the Bank is empowered to conduct.
(g) The Chairperson of the Cooperative League shall be an ex officio member of the Board of Directors.
(h) The Board of Directors shall hold at least one regular meeting each month. Five (5) members thereof shall constitute quorum.
History —June 21, 1966, No. 88, p. 257, § 9; May 31, 1976, No. 94, p. 277, § 1; Sept. 25, 1992, No. 79, § 4; Aug. 13, 1998, No. 238, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 760 - General Assembly

(a) At least one Regular General Assembly of Stockholders shall be held each year, and as many special assemblies as may be necessary in the opinion of the Board of Directors. The Board may call a Special Assembly at the request of the holders of at least one third (1 / 3) or more of the shares issued and outstanding.
(b) Notice of the General Assemblies shall be served on the stockholders, via registered mail with acknowledgement of receipt to the postal address that appears on the books of the Bank, at least thirty (30) days prior to the date on which the same are to be held.
(c) The bylaws shall determine the time of year for holding, and the form and manner of constituting, the regular and special general assemblies.
(d) Quorum for every general assembly of stockholders shall be more than fifty percent (50%) of the capital available at the time of the call. Matters not contained in the corresponding call shall not be considered in the special assemblies of stockholders.
(e) Resolutions shall only be made by a majority vote of the stockholders present. Directors shall be elected by the affirmative vote of a majority of the stockholders present.
History —June 21, 1966, No. 88, p. 257, § 10; Sept. 25, 1992, No. 79, § 5; Aug. 13, 1998, No. 238, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 762 - Regulation of loans

The Board of Directors shall establish the regulations covering the granting of loans by the Bank.
History —June 21, 1966, No. 88, p. 257, § 12.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 763 - Discounts to employees

Any employee may authorize, with the consent of his employer, that a fixed amount be periodically discounted from his wages or salary to be forwarded to the Bank for the following purposes:
(a) To deposit in a savings account in the Bank to the name of the employee.
(b) For the purchase of the Bank’s stock.
(c) To apply to the payment of loans or obligations incurred by the employee with the Bank.
By mutual agreement with the employer, the Bank shall establish the rules for remitting to the Bank the sums so deducted by the employers.
The agencies, departments and instrumentalities of the Commonwealth and political subdivisions thereof shall be under obligation to make these discounts on petition of their employees.
Any employer excepting the Commonwealth Government, retaining in his possession for more than fifteen (15) days, without just cause, the money deriving from the discounts made from the payroll of employees pursuant to these provisions of law shall be guilty of a misdemeanor and upon conviction punished by a minimum fine of fifty dollars ($50) for each violation.
History —June 21, 1966, No. 88, p. 257, § 13.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 765 - Reserve Fund

The Bank shall annually cover not less than ten percent (10%) of its net income into a fund which shall be known as Reserve Fund. Contributions to said fund shall continue until it becomes equal to the aggregate amount of the Bank’s paid-in capital. The balance of the net income of the year shall be posted upon the surplus account. The board of directors shall be empowered to set the criteria to govern the distribution of the funds in the surplus account.
At no time during its life may the Bank withdraw or permit the withdrawal, either in the form of dividends or otherwise, of any portion of its capital or of the Reserve Fund, except as provided in § 755 of this title.
History —June 21, 1966, No. 88, p. 257, § 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 768 - Inspection

The Commissioner of Financial Institutions shall make at least one examination each year of the operations and activities of the Bank. The expenses incurred by the Commissioner in this examination shall be reimbursed by the Bank. Said examination shall cover the conditions and resources of the Bank, the manner of conducting and handling its affairs, the actions of its directors, the investment of funds, the safety and soundness of its management, the guaranty given to insure performance of the obligations contracted, the compliance with the provisions of law affecting the operations of the Bank, as well as any other matter which the Commissioner of Financial Institutions may deem pertinent to investigate. The Commissioner of Financial Institutions shall have the power to direct the Bank to charge against its undistributed profits, its reserve fund or its capital account, any loan or part of a loan, assets or part of assets, which, in his judgment, constitutes a possible loss to the Bank, and may further direct the setting aside of such portion of its future profits as he may deem desirable, until said capital accounts and reserve funds are fully restored.
History —June 21, 1966, No. 88, p. 257, § 18; Sept. 25, 1992, No. 79, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 768a - Suspension or removal of directors and officers

When the Commissioner of Financial Institutions determines there is evidence that any director or officer of the Cooperative Bank of Puerto Rico has violated this chapter, the rules and regulations promulgated hereunder or a final injunction, or has performed acts contrary to sound banking practices in connection with the Bank, or has participated in them, or has committed or participated in the commission of any act, omission or practice constituting a violation of his fiduciary duties as director or officer of the Bank, or the Commissioner of Financial Institutions determines that the Bank has sustained or will probably sustain a substantial financial loss or other injury on account of such violation or practice or failure to carry out his fiduciary responsibilities or that such violation or failure is one involving personal dishonesty on the part of the director or officer, the Commissioner of Financial Institutions may issue a written order suspending or removing him from his position in that Bank. The Commissioner is hereby empowered to appoint substitute directors for such term that in his judgment and discretion he may deem convenient to assure a sound and safe management of the business of the Bank.
History —June 21, 1966, No. 88, p. 257, added as § 18A on May 31, 1976, No. 94, p. 277, § 2; May 5, 1977, No. 16, p. 29; Sept. 25, 1992, No. 79, § 11.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 769 - Designation of receiver

If as a result of the examination made of the Bank the Commissioner of Financial Institutions obtains evidence that the Bank is not in sound economic condition to continue its business, or that it is being managed in such manner that its depositors are in jeopardy of being defrauded, the Commissioner of Financial Institutions shall assume the direction and management of the Bank and shall promptly appoint a receiver, which may be the Federal Deposit Insurance Corporation. The receiver thus appointed shall manage the Bank according to the provisions of this chapter and the applicable regulations.
Said receivership shall terminate with the total liquidation of the Bank, if it were necessary, or when the operations thereof, as certified by the receiver, will allow, in the judgment of the Commissioner of Financial Institutions, the return of the Bank’s management to its officials and officers, duly elected and appointed under such circumstances as the Commissioner of Financial Institutions may stipulate. The Commissioner of Financial Institutions may fix a reasonable compensation for the services of the receiver and his employees. The determination of the Commissioner of Financial Institutions to appoint a receiver shall be reviewable by the Court of First Instance. The decision of the court shall be binding, and, once entered, the said court shall forfeit all jurisdiction over the case. In addition to the above, the Commissioner of Financial Institutions may opt not to decree the receivership and, instead, proceed according to the provisions on the substitution of directors of § 768a of this title, without prejudice to his option for the receivership at any moment.
History —June 21, 1966, No. 88, p. 257, § 19; May 5, 1977, No. 16, p. 29; Sept. 25, 1992, No. 79, § 12.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 771 - Books, papers and affairs

If the Bank shall refuse to submit its books, papers and affairs to the inspection of any examiner of the Treasury Department, or if it should appear that the Bank has violated its charter or any law concerning it, the Secretary of the Treasury shall proceed to declare the liquidation and dissolution of the Bank and shall appoint a receiver to carry out such liquidation or dissolution.
History —June 21, 1966, No. 88, p. 257, § 21.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 772 - Acceptance of gifts; penalties

Any officer, director, employee or agent of the Bank who receives or agrees to receive anything of value from any person or enterprise, for procuring for him or it, or for any other person or enterprise, any loan, or the purchase of or discount on any negotiable document of the Bank shall be guilty of a felony and punished by imprisonment for a minimum term of one (1) year and a maximum of five (5) years or with a fine of not more than five thousand dollars ($5,000) or double the amount received by said director, official, employee, or agent of the Bank, whichever is the greatest of the two, or both penalties at the discretion of the court.
History —June 21, 1966, No. 88, p. 257, § 22; July 6, 1978, No. 100. p. 304, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 772a - Violation of this chapter, penalties

Any director, officer, employee or agent of the Bank who, knowingly and maliciously violates or allows the violation of the provisions of this chapter, or the regulations promulgated hereunder by the Commissioner of Financial Institutions, shall be guilty of a felony, and upon conviction, shall be punished with imprisonment for a term of not less than one (1) year nor more than five (5) years, or a minimum fine of five hundred dollars ($500) and a maximum of five thousand dollars ($5,000), or both penalties, at the discretion of the court.
History —June 21, 1966, No. 88, p. 257, added as § 22A on July 6, 1978, No. 100, p. 304, § 2; Sept. 25, 1992, No. 79, § 14.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 773 - Discredit of financial situation or solvency; penalties

Any person or publication that knowingly and maliciously makes, circulates or transmits to another, or to others, any statement, hearsay or suggestion, written, printed, or oral, which directly or by inference detracts from the financial condition of the Bank, or which affects the solvency or credit of the Bank, or any person or publication that advises, aids, procures, or induces another to originate, transmit, or circulate any such statement or hearsay, shall be guilty of a felony and upon conviction punished by a fine of not less than five hundred dollars ($500) or by confinement in the penitentiary for a term of not more than five (5) years, or both.
History —June 21, 1966, No. 88, p. 257, § 23.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 774 - Investments—Cooperatives

All types of cooperatives organized under the laws of the Commonwealth of Puerto Rico are hereby authorized to invest in stocks and bonds of the Bank.
History —June 21, 1966, No. 88, p. 257, § 24.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 775 - Investments—Commonwealth and instrumentalities

The Commonwealth, its municipalities, instrumentalities and public corporations, savings and retirement funds administered by the Commonwealth and its instrumentalities, including the Teachers’ Retirement Fund as well as the Savings and Loan Fund of the Employees Association of the Government of Puerto Rico, are hereby authorized to invest funds in any type of debenture issued by the Bank.
History —June 21, 1966, No. 88, p. 257, § 25.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 776 - Investments—Cooperative Development Administrator

The Cooperative Development Administrator is hereby authorized to invest his/her funds in the organization and promotion of the Bank.
History —June 21, 1966, No. 88, p. 257, § 26; Aug. 13, 1998, No. 238, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 777 - Fines

Any violation of the provisions of this chapter or of regulations promulgated hereunder by the Commissioner of Financial Institutions shall be subject to an administrative fine to be determined by the Commissioner of Financial Institutions, and which shall in no case exceed one thousand dollars ($1,000). Provided, That any director, officer, employee or agent of the Bank who violates or permits any violation of the provisions of this chapter or the regulations promulgated hereunder by the Commissioner of Financial Institutions shall answer personally with his assets for all damages suffered by the corporation, its shareholders or any other person as a result of said violations.
History —June 21, 1966, No. 88, p. 257, § 27; July 6, 1978, No. 100, p. 304, § 3; Sept. 25, 1992, No. 79, § 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 778 - Application of the “Banking Law”

The provisions of the “Banking Law” in force, §§ 1 et seq. of this title, shall be applicable to the Bank insofar as compatible with the provisions of this chapter.
History —June 21, 1966, No. 88, p. 257, § 28.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 779a - Guaranteed payment obligations for capital

The Government of Puerto Rico is authorized to guarantee the payment at maturity of a series of capital obligations for an amount of up to ten million dollars ($10,000,000), plus interest pending payment thereon; to be issued by the Cooperative Bank of Puerto Rico. This guarantee shall be effective at the time that the Commissioner of Financial Institutions certifies that the Bank’s shareholders have invested an equal sum in additional capital through the purchase of common stock of the Bank. This guarantee shall be in effect for a term not to exceed ten (10) years from the effective date of the present act.
History —July 14, 1994, No. 42, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 779b - Issuance of capital obligations with a fixed or variable rate of interest

The Cooperative Bank of Puerto Rico, created by §§ 751—778 of this title, is hereby authorized to issue capital obligations with a fixed or variable rate of interest and a term of maturity which shall not exceed ten (10) years from the effective date of this act, and in compliance with the provisions of § 779a of this title.
History —July 14, 1994, No. 42, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 779c - Funds

The Secretary of the Treasury is authorized to acquire an advance of any liquid resources of the General Fund of the Commonwealth Treasury, or to borrow from the Government Development Bank or from private banks, those sums that are necessary to comply with the purposes of the §§ 779a—779c of this title.
History —July 14, 1994, No. 42, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 801 - Creation

The creation of a corporation to operate under the name of “Savings and Loans Labor Bank of Puerto Rico”, hereinafter to be referred to as the Labor Bank, is hereby authorized.
History —June 14, 1960, No. 86, p. 162, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 802 - Purpose; activities

The purpose of the Savings and Loans Labor Bank of Puerto Rico is to promote the welfare of the Puerto Rican workers by encouraging regular and systematic saving on their part, and the utilization of such savings, in addition to other resources the institution may avail itself of, for:
(a) Meeting the legitimate credit needs of the workers, and
(b) facilitating the creation of new employment sources and the expansion and improvement of those already existing, for which reason its public end is in all respects for the benefit of the people of Puerto Rico.
In the attainment of this purpose the Labor Bank shall lend particular attention to the following activities:
(a) Develop and establish mechanisms or systems that will encourage and facilitate regular savings on the part of workers-preferably through the purchase of stock of the Labor Bank-and on the part of other moderate-income persons.
(b) Facilitate the depositing in the bank of the financial resources accumulated by labor unions, in order that the same may be utilized for directly benefiting the workers themselves.
(c) Help meet the legitimate personal and mortgage credit needs of the workers and other moderate-income persons.
(d) Help finance housing, educational, cultural, and other kinds of programs that may be developed by the labor unions for the benefit of their members.
(e) Contribute toward the expansion of employment opportunities and the increasing of the workers’ income through the granting of credit, particularly intermediate and long-term credit, to productive undertakings operating in Puerto Rico.
(f) Develop, on its own account or in collaboration with other entities, educational programs aimed at encouraging among workers the sound and farseeing management of their finances.
History —June 14, 1960, No. 86, p. 162, § 2; June 26, 1961, No. 115, p. 248, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 803 - Principal office; branches

The principal office of the Labor Bank shall be located in San Juan, Puerto Rico. Such branches as the Board of Directors of the Labor Bank may deem necessary may be established, but the same shall be approved by the Secretary of the Treasury. The Board of Directors may request the transfer of its principal office and branches from one place to another. This transfer shall be approved by the Secretary of the Treasury after determining that it is advantageous and convenient to the community.
History —June 14, 1960, No. 86, p. 162, § 3; July 1, 1975, No. 134, p. 404, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 804 - Minimum capital

The minimum capital required for the establishment of the Labor Bank shall be one hundred thousand dollars ($100,000), which must be paid in before the institution commences to operate as a bank in Puerto Rico.
History —June 14, 1960, No. 86, p. 162, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 805 - Classes of stock

The capital shall consist of four (4) types of common stocks: Class “A” shares, Class “B” shares, Class “C” shares, and Class “D” shares, which shall have the same par value, and preferred Class “E” shares. Class “A” shares shall be voting stock, and shall be held by natural persons who are accredited members of labor unions recognized in Puerto Rico or of teachers’ organizations and employees’ associations. Class “A” shares shall cease to be voting stock and to draw dividends when no longer held by natural persons who are accredited members of labor unions in Puerto Rico recognized in Puerto Rico or teachers’ and employees’ organizations.
Class “B” shares shall not be voting stock, and shall be held by labor unions recognized in Puerto Rico or teachers’ and employees’ organizations. Class “C” shares shall not be voting stock, and shall be held by the welfare, pension and retirement funds of the labor unions recognized in Puerto Rico or of teachers’ and employees’ organizations. No union may at any time hold more than fifteen percent (15%) of the totality of Class “B” shares issued. At no time shall there exist a proportion larger than three (3) Class “B” and “D” shares for each Class “A” share.
Common Class “D” shares shall be voting stock, and may be held by workers whether or not members of labor unions recognized in Puerto Rico. The total number of common Class “D” shareholders may at no time exceed ten percent (10%) of the total number of Class “A” shareholders. The issuance of these stocks shall be subject to a regulatory provision approved in a regular or special general assembly of the General Board of Stockholders of the bank.
Preferred Class “E” shares may be divided into series, and each series may have different characteristics including name, preferences or restrictions with respect to dividends and redemptions by decision of the Board of Directors.
History —June 14, 1960, No. 86, p. 162, § 5; June 26, 1961, No. 115, p. 248, § 1; June 28, 1969, No. 117, p. 327, § 1; July 1, 1975, No. 134, Part 1, p. 404, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 806 - Voting rights

In the exercise of the voting right of Class “A” and “D” shares, vote by proxy is hereby forbidden.
It is hereby established that there shall be only one vote to each Class “A” and Class “D” shareholder regardless of the number of shares of this kind held by him.
In case the bank comes into possession of any Class “A” and “D” shares it shall be bound to dispose of them through public or private sale within a period of one (1) year from the date of acquisition.
History —June 14, 1960, No. 86, p. 162, § 6; June 28, 1969, No. 117, p. 327, § 2; July 1, 1975, No. 134, Part 1, p. 404, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 807 - Incorporation

Five (5) or more natural persons residing in Puerto Rico, each and every one of them being accredited members of different central bodies of labor unions recognized in Puerto Rico, may request of the Secretary of the Treasury authorization to establish the Savings and Loans Labor Bank of Puerto Rico, by filing an application containing:
(a) The name and address of each of the incorporators; and the number of shares subscribed by them;
(b) the exact address of the place where the offices of the Labor Bank shall be located;
(c) the authorized capital stock to be had by the institution, and the number of shares into which it will be divided;
(d) the term of its existence, which may be perpetual, and
(e) any other information which the Secretary of the Treasury may deem it proper to require by regulations promulgated for implementing this chapter.
The Secretary of the Treasury shall verify with the Secretary of Labor and Human Resources the labor affiliation and moral solvency of the incorporators for the purpose of determining the legal capacity thereof pursuant to the provisions of this chapter. Once the Secretary of the Treasury has approved the application for incorporation, the same shall be filed with the Department of State for the formal incorporation of the institution.
History —June 14, 1960, No. 86, p. 162, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 808 - Commencement of operations

The Labor Bank shall commence its banking operations as soon as the Secretary of the Treasury shall certify that all organization requirements established by law or regulations have been complied with.
History —June 14, 1960, No. 86, p. 162, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 810 - Stockholders’ meetings

There shall be held at least one (1) regular general meeting of stockholders for the election of the Board of Directors, every two (2) years and as many special meetings as may be necessary in the opinion of the Board of Directors.
Notice of the general meetings shall be served through labor unions to stockholder at least thirty (30) days prior to the date on which the same are to be held, and, in addition, an advertisement of each meeting of shareholders shall be published twice a week during the four (4) consecutive weeks immediately preceding the date of the meeting, in two (2) newspapers of general circulation in Puerto Rico. If for any reason the election of directors should not take place on the date set therefor, another election may be held on any subsequent day with twenty- (20) day notice published in a newspaper of general circulation in Puerto Rico.
The bylaws shall determine the time of year for holding, and the form and manner of constituting the general regular meetings.
The meeting shall be held and legally constituted with whatever the number of attending shareholders. No matter not contained in a call may be considered at any special meeting, and a twenty- (20) day notice of each first call shall precede the day on which the meeting is to be held.
Resolutions shall be made only by a majority vote of the stockholders present at the meeting.
History —June 14, 1960, No. 86, p. 162, § 10; June 26, 1961, No. 115, p. 248, § 1; June 28, 1969, No. 117, p. 327, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 812 - Loan regulations; wage deductions upon default

The Board of Directors shall establish the regulations covering the granting of loans by the Labor Bank; Provided, That in establishing such regulations, the Board shall provide for the granting of loans to workers in seasonal employment.
After the approval of this act, when the worker so authorizes in writing under his signature, the Labor Bank is hereby authorized to direct the discount, from the payroll of the worker or employee to whom it may have granted loans, of up to fifteen percent (15%) of such payroll, so as to credit the sum so deducted to the debt installments in default. The Labor Bank may request that such a discount be made in the payroll of the worker or employee whenever the laborer’s debt has at least two (2) installments in default and the Bank has followed the normal collection procedure. When the worker so authorizes under his hand and notice is served to the employer or officer, the amount of the loan shall be deducted by his employer or official in monthly installments which shall be forwarded to the Labor Bank.
The provisions of this section shall also be applicable to employees of the Commonwealth of Puerto Rico, its municipalities, agencies and subdivisions thereof. Every employer or officer who after having been required by the Labor Bank fails to deduct and remit or who deducts but fails to remit to the Bank any of both things, within thirty (30) days after said requirement, shall be guilty of a misdemeanor, unless he has proof to the effect that the debt is not liquid and demandable. Upon conviction of any of said offenses the employer or officer shall pay a fine for each offense of not less than twenty five dollars ($25.00) nor more than five hundred dollars ($500.00) or sentenced to imprisonment in jail for a term not to exceed six (6) months, or both penalties in the discretion of the court.
History —June 14, 1960, No. 86, p. 162, § 12; June 26, 1961, No. 115, p. 248, § 1; June 28, 1969, No. 117, p. 327, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 813 - Wage deductions for savings accounts or stock purchases; funeral expenses

When a worker or employee signs an authorization, the employer or officer shall regularly deduct from his wages or salary the authorized amount to be forwarded to the Labor Bank and deposited in a savings account to the name of the said worker or employee. Also, when an accredited member of a labor union or of a teacher’s and employee’s organization duly recognized signs an authorization, the employer shall regularly deduct the authorized amount from his wages to be forwarded to the Labor Bank and used for the purchase of Class “A” shares. Any employer or officer failing to deduct and send the deducted amount within the term of fifteen (15) days shall be guilty of a misdemeanor. Upon conviction for any of said offenses the employer or officer shall pay a fine for each offense of not less than twenty five dollars ($25.00) nor more than five hundred dollars ($500.00), or imprisonment in jail for a term which shall not exceed six (6) months, or both penalties, in the discretion of the court.
In the event of the death of a depositor there may be withdrawn from his deposits up to the sum of five hundred dollars ($500) for funeral expenses without court order, upon presentation of an affidavit by the surviving spouse, or, in default thereof, by the next of kin residing in Puerto Rico, setting forth the fact that the money will be used for funeral expenses. The death certificate of the depositor shall accompany such affidavit.
History —June 14, 1960, No. 86, p. 162, § 13; June 26, 1961, No. 115, p. 248, § 1; June 28, 1969, No. 117, p. 327, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 815 - Dividends; reserve fund

The directors of the Labor Bank may periodically declare dividends to its stockholders in such amount as they may deem reasonable; Provided, That the Labor Bank shall, before declaring dividends on its common stock, cover not less than ten percent (10%) of its net income during the period to which the dividends so declared apply into a fund which shall hereinafter be known as the Reserve Fund. These annual contributions to the Reserve Fund shall continue until said Fund becomes equal to the aggregate amount of the available capital of the Labor Bank.
Never in its life may the Labor Bank withdraw or permit the withdrawal of, either in the form of dividends or in any other form, any portion of its capital stock or of the Reserve Fund.
History —June 14, 1960, No. 86, p. 162, § 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 67 - Savings and Loans Labor Bank of Puerto Rico (§§ 801 — 825) › § 816 - Exemption from taxes

The Labor Bank, including its capital, reserves and surpluses, and its loans and income, shall be exempt from all kinds of taxes heretofore or hereafter levied by the Commonwealth of Puerto Rico or any political subdivision thereof, and all stock and capital debentures issued shall be exempt, in their value and in the income deriving therefrom, from all kinds of taxes heretofore or hereafter levied by the Commonwealth of Puerto Rico or any political subdivision thereof.
History —June 14, 1960, No. 86, p. 162, § 16; July 1, 1975, No. 134, Part 1, p. 404, § 7.