reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 3 - Incorporation and Organization (§§ 31 — 39) › § 35 - Capital stock and reserve fund required for organization

No bank shall be organized and established in Puerto Rico with a capital investment of less than five million dollars ($5,000,000) represented by common stock and a reserve fund of one million dollars ($1,000,000). The Commissioner shall require a larger amount of capital when he/she deems it convenient and beneficial for the best public interest. If banks are organized with a larger amount of capital than the minimum prescribed herein, the reserve fund thus required shall amount to at least twenty percent (20%) of the capital. The capital, as well as the reserve fund shall be paid in cash and both payments shall be certified to the Commissioner before the bank is authorized to begin operations.
History —May 12, 1933, No. 55, p. 322, § 8; May 12, 1936, No. 74, p. 374, § 1; May 15, 1950, No. 430, p. 1056, § 2; Mar. 7, 1951, No. 11, p. 24, § 1; Sept. 7, 1961, No. 12, p. 353, § 1; July 23, 1974, No. 165, Part 1, p. 767, § 3; Aug. 28, 1997, No. 108, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 3 - Incorporation and Organization (§§ 31 — 39) › § 36 - Division of stock; transfer; rights of shareholders and creditors

The capital of every bank shall be divided into shares, as provided by the certificate of incorporation. Every bank may issue common and preferred stock, as provided in its certificate of incorporation and pursuant to the provisions of Act No. 144 of August 10, 1995, known as the “General Corporations Law of 1995”. The common stock must be at par value. The bank stock shall be transferred in the bank’s account books in the form prescribed in the bank’s charter or in its certificate of incorporation. Any person who by virtue of said transfer becomes a bank stockholder shall, in proportion to his/her shares, succeed to the rights and liabilities of the prior stockholder; and no change shall be made in the certificate of incorporation by virtue of which the rights or guarantees of the existing creditors of the bank would be impaired.
History —May 12, 1933, No. 55, p. 322, § 9; May 12, 1936, No. 74, p. 374, § 2; June 3, 1948, No. 6, p. 16, § 1; May 15, 1950, No. 430, p. 1056, § 3; Aug. 28, 1997, No. 108, § 9.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 3 - Incorporation and Organization (§§ 31 — 39) › § 36a - Issuing of capital liabilities

A bank may issue capital liabilities with the approval of the Commissioner. Said capital liabilities shall be subordinated by law to the liabilities with depositors and other creditors of the issuer bank and shall not be issued for an expiration period of less than five (5) years. The Commissioner may suspend the payment of principal or interest, of both, of the capital liabilities when they come due or before they come due, when said payment reduces the amount of capital in stock or reserve fund, or otherwise causes the bank to fail to comply with any applicable statutory or regulatory capital requirement, or when in his/her judgment, said payment could affect the financial solvency of the bank or put the interests of the depositors and the general public at risk. Capital obligations shall be deemed as part of the capital for the purposes of §§ 35 and 36 of this title: but they shall be itemized and designated separately in all general balance sheets and shall not be subject to the payment of taxes. No bank shall acquire its own capital obligations as an investment of its trust funds or for its investment portfolio.
History —May 12, 1933, No. 55, p. 322, added as § 9(a) on Aug. 28, 1997, No. 108, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 3 - Incorporation and Organization (§§ 31 — 39) › § 37 - Register of shares; stock certificates

The shares of every bank shall be recorded in a registry of shares which shall be kept at a place designated through a resolution of the Board of Directors and in which all its successor transfers shall also be recorded.
The registry of bank shares may be maintained in the form of punch cards, magnetic tape, photographs, microfiches, computer files or any other means of storing information, provided the records thus kept may be converted into a clearly legible form within a reasonable period of time. Any bank shall convert any file thus kept at the request of any person entitled to examine them; pursuant to the provisions established in Act No. 144 of August 10, 1995, known as the “Corporations Law of 1995”.
Bank shares shall be represented by certificates. Provided, however, That according to the provisions of the certificate of incorporation or the bank statutes, the Board of Directors of the bank may determine by resolution that some or all shares, of any or all classes or series, shall be uncertified shares. Said resolution shall not apply to those shares represented by certificates until the certificate is delivered to the bank. The adoption of said resolution by the Board of Directors notwithstanding, any holder of shares represented by certificates and, by petition, any holder of uncertified shares, shall be entitled to possess a certificate signed by, or on behalf of the bank, by the president or vice-president or the treasurer or subtreasurer or the secretary or undersecretary of such a bank that represents the number of shares registered as certificates. Each and every signature on the certificate may be a facsimile. Should any official, transfer agent or registrar whose signature or facsimile signature appears on the certificate ceases in his/her functions as such before said certificate is issued, the bank may issue said certificate with the same validity as if said official, transfer agent or registrar were still in office as of the date of said issue.
History —May 12, 1933, No. 55, p. 322, § 10; Aug. 28, 1997, No. 108, § 11.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 3 - Incorporation and Organization (§§ 31 — 39) › § 38 - Reduction of capital stock

Any bank organized under the laws of Puerto Rico may, through a resolution of its Board of Directors, reduce its capital by repurchasing its shares, whether to retain or withdraw them, to any amount which is not less than that required by §§ 1 et seq. of this title to authorize the establishment of banks; but said reduction shall not be made until the Commissioner has been informed of the amount of the proposed reduction and his/her approval has been obtained.
History —May 12, 1933, No. 55, p. 322, § 11; Aug. 28, 1997, No. 108, § 12.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 5 - Directors, Stockholders, and Meetings (§§ 61 — 66) › § 61 - Bylaws, adoption and amendment of

The initial or subsequent bylaws of the bank may be adopted, amended or repealed by the incorporator or incorporators, by the initial directors if they were named in the certificate of incorporation, or, if the bank has received no payment whatsoever for its shares, by the Board of Directors. After the bank has received payment for any shares, it is the stockholders who shall have the power to adopt, alter or repeal the bylaws. The power to amend the bylaws may be conferred upon the board of directors in the certificate of incorporation. The fact that said power is conferred upon the board of directors shall not deprive or limit the stockholders from having the power to adopt, amend, or repeal the bylaws.
History —May 12, 1933, No. 55, p. 322, § 23; May 12, 1936, No. 74, p. 374, § 8; May 15, 1938, No. 199, p. 387, § 5; Aug. 28, 1997, No. 108, § 24.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 5 - Directors, Stockholders, and Meetings (§§ 61 — 66) › § 62a - Power of bank to indemnity

(a) Any bank may indemnify any person who is, has been, or is at risk of becoming a party to any action, suit or procedure, be it imminent, pending or resolved, or civil, criminal, administrative or investigative (except for an action initiated by the bank or initiated to protect the interests of the bank), because the person has been or is a director, official, employee or agent of the bank, or was or is acting by petition of the bank as director, official, employee or agent of another enterprise.
(b) A bank may indemnify any person who is, has been, or is at risk of becoming a party to any action or suit, which is imminent, pending or resolved, initiated by the bank or initiated to protect the interests of the bank, to obtain a judgment in favor of the bank, because the person is, or has been a director, official, employee or agent of the bank, was acting at the request of the bank as director, official, employee or agent of another enterprise.
(c) Notwithstanding the provisions of subsections (a) and (b), no indemnification shall be made under this sction when it involves the imposition of a fine on the person whose indemnification is contemplated, for violating a provision of §§ 1 et seq. of this title.
(d) A bank may acquire and maintain insurance in behalf of any person who is or has been a director, official, employee or agent of the bank, against any liability that may be claimed against that person or which has been incurred by that person in said capacity, or which arises from his/her position as such.
(e) The provisions of Act No. 144 of August 10, 1995, known as the “General Corporations Law of 1995”, regarding the indemnification of directors, officials, employees and agents, shall apply to the banks, provided they are not in contravention of the provisions of this section. It being understood, however, that the Board of Directors of a bank, or of any other entity entitled to make such a determination, shall not, in any case, authorize the indemnification of directors, officials, employees and agents of a bank, contemplated in this section, without first formally concluding and determining that the person to be indemnified acted in good faith, in behalf of the best interests of the institution and in accordance with the best interests of the bank.
History —May 12, 1933, No. 55, p. 322, added as § 24(a) on Aug. 28, 1997, No. 108, § 26.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 5 - Directors, Stockholders, and Meetings (§§ 61 — 66) › § 63 - Powers of officers

The powers and duties of the Chairperson of the Board, of the President of the bank, of the Vice-presidents and other executive or administrative officials, shall be fixed and determined in the bylaws of the bank, which shall not contain any provision whatsoever which contravenes any legislation in force in Puerto Rico.
History —May 12, 1933, No. 55, p. 322, § 25; June 7, 1967, No. 117, p. 359, § 1; Aug. 28, 1997, No. 108, § 27.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 5 - Directors, Stockholders, and Meetings (§§ 61 — 66) › § 64 - Prohibition on service as director, officer, agent or employee in more than one financial institution

No official, director, agent or employee of a bank organized under §§ 1 et seq. of this title may serve or discharge an office as official, director, agent or employee of another bank organized under §§ 1 et seq. of this title, or finance company, savings and loan association, trust company, companies engaged in granting mortgage loans, or any other institution engaged in the business of lending money in Puerto Rico; Provided, however, That this prohibition shall not apply to the bank’s affiliates, public financing institutions, cooperative institutions, the Economic Development Bank for Puerto Rico or the Government Development Bank for Puerto Rico.
History —May 12, 1933, No. 55, p. 322, added as § 25a on June 3, 1948, No. 6, p. 16, § 2; Sept. 7, 1961, No. 12, p. 353, § 1; July 23, 1974, No. 165, Part 1, p. 767, § 7; Aug. 28, 1997, No. 108, § 28.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 111a - Applicable conditions

(1) No bank may conduct operations or activities or exercise powers under § 111 of this title, except for those incidental to and necessary as preliminary steps for its organization, until the same has been duly authorized by the Commissioner to start business operations.
(2) Provided there is no express prohibition by law or regulations, any bank may conduct any of the activities authorized in subsections (a)—(k) of § 111 of this title, both inclusive, and subsections (n), (o), and (p) of § 111 of this title, whether directly in their own departments or through their branches or divisions.
(3) Subject to the prior approval of and to the conditions established by the Commissioner for such an approval, any bank may conduct any of the activities authorized in this section through a bank subsidiary, provided the exercise of said activity conducted through the proposed bank subsidiary is not expressly prohibited by law or regulations.
(4) Any parent company of a bank authorized under this chapter to operate in Puerto Rico and any subsidiary company of said parent company that conducts any of the activities authorized in this section in Puerto Rico, shall provide, as required by the Commissioner, any or all of the following types of information:
(a) Any information required by the Commissioner regarding any of its activities in Puerto Rico.
(b) Any information directly or indirectly related to the solvency or financial stability of the bank conducting business in Puerto Rico.
History —May 12, 1933, No. 55, p. 322, added as § 14(b) and amended on Nov. 21, 2007, No. 169, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 114 - Checks, unlawful certification

It shall be unlawful for any director, official, agent or employee of any bank or foreign bank to certify any check drawn against said bank unless the person or company drawing the check has on deposit with the bank, at the time the check is certified, an amount not less than the amount specified in such a check. Any check thus certified by duly authorized officials shall become a valid obligation against such a bank or foreign bank when in possession of any holder in good faith. Any director, official, agent or employee of any bank or foreign bank who, knowingly acts in violation of the provisions of this section shall be deemed guilty of a felony and punished with a term of imprisonment of not less than one (1) nor more than two (2) years.
History —May 12, 1933, No. 55, p. 322, § 18; Aug. 28, 1997, No. 108, § 19.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 115 - Embezzlement and other offenses

Any president, director, official, cashier, employee or agent of a bank or foreign bank who commits breach of trust, or who embezzles or willfully misapplies money, funds or credits of the bank, or securities existing therein; or who, without being duly authorized, issues or draws any certificate of deposit, draws any order or bill of exchange, makes any acceptance or assigns any note, bond, draft, bill of exchange, mortgage, judgment or decree or who makes any false entry in any book, report or statement of the bank or foreign bank, or who deceives any employee, director or official of the bank or foreign bank with the intent, in any of such cases, to injure or defraud the bank, or any other company, juridical person or corporation, or any individual person, or to deceive any bank official or any agent appointed to examine the affairs of such a bank or foreign bank; and any person who with like intent aids or abets any official, agent or employee in any violation of this section, shall be deemed guilty of a felony and imprisoned for a term of not more than ten (10) years; Provided, That the bank shall collect and cover into its funds, from the amount of any life insurance policy which the bank may have taken for the employee and paid the premiums thereon, up to the sum embezzled or disposed of by the insured employee, and the employee, his/her beneficiaries, assignees or successors in interest shall lose all rights or benefits of such policy.
History —May 12, 1933, No. 55, p. 322, § 19; Aug. 28, 1997, No. 108, § 20.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 116 - Penalty for receiving deposits when insolvent

Any director, official, agent or employee of any bank or foreign bank doing in business in Puerto Rico, who receives any deposit knowing that said bank or foreign bank is insolvent, shall be guilty of a felony and punished by a term of imprisonment of not less than one (1) nor more than five (5) years, or a fine of not less than one thousand dollars ($1,000) nor more than six thousand dollars ($6,000), or both penalties.
Any bank or foreign bank shall be deemed insolvent for the purposes of §§ 1 et seq. of this title, when upon an examination conducted by the Commissioner, it is found that the total amount of the assets of said bank or foreign bank is less than the total amount of its obligations to its creditors.
History —May 12, 1933, No. 55, p. 322, § 20; May 15, 1938, No. 199, p. 387, § 4; Aug. 28, 1997, No. 108, § 21.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 117 - Preferential transfers, penalties

All transfers of notes, bonds, bills of exchange or credits of any bank or foreign bank or deposits to the credit thereof, and all assignments of mortgages, surety on real property or of judgments or decrees its behalf and all deposits of money, gold and silver ingots, or any other thing of value for its use or for the use of its stockholders and creditors, and all payments of money to said stockholders or creditors made after said bank is in a state of insolvency as defined in §§ 1 et seq. of this title, or in expectation thereof, with the intent of preventing the application of an asset in the manner prescribed, or with the intent of giving preference to one creditor over another, shall be null and ineffective, and no attachment, foreclosure or writ of injunction shall be issued against said bank or foreign bank, or against its properties, before final judgment is rendered in any suit, action or proceeding in the Court of First Instance of Puerto Rico.
Should the directors of a bank or a foreign bank knowingly violate or knowingly allow any official, agent or employee of the bank or foreign bank to violate the provisions of this section, the penalties prescribed in § 115 of this title shall be applied to the guilty directors.
History —May 12, 1933, No. 55, p. 322, § 21; May 12, 1936, No. 74, p. 374, § 7; Aug. 28, 1997, No. 108, § 22.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 118 - Loss of license, personal liability of directors

Should the directors of a bank or foreign bank knowingly violate or knowingly allow any official, agent or employee of the bank or foreign bank doing business in Puerto Rico, to violate the provisions of §§ 112—121 of this title, the license of the bank may be canceled at the request of the Commissioner, who can declare the bank in liquidation. Such violation shall, however, be determined and decided by the Superior Part of the Court of First Instance of the place where the main office of said bank is located, in a suit brought for that purpose by the Secretary of Justice at the request and in the name of the Commissioner, before the corporation has been declared dissolved. And in the event of such violation, every director who has participated in or agreed to it shall be held liable in his/her personal and individual capacity for all damages which the bank, its stockholders or any other person may have sustained as a result of such violation.
History —May 12, 1933, No. 55, p. 322, § 22; Aug. 28, 1997, No. 108, § 23.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 119 - Unlawful fees and commissions, penalties

Any official, director, employee or agent of a bank or foreign bank who stipulates, receives, acquiesces or agrees to receive any fee, commission, gift or thing of value, from any person, firm or corporation, for obtaining or trying to obtain for said person, firm or corporation, or for any other person, firm or corporation, any loan, or the purchase or discount of any document, promissory note, draft, check or bill of exchange, by said bank or foreign bank, shall be deemed to be guilty of a felony and, upon conviction thereof, shall be punished by imprisonment for not more than one (1) year, or a fine of not more than ten thousand dollars ($10,000), or both penalties.
History —May 12, 1933, No. 55, p. 322, added as § 36b on May 15, 1950, No. 430, p. 1056, § 14; Aug. 28, 1997, No. 108, § 41.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 9 - Banking Transactions (§§ 111 — 121) › § 121 - Discrediting banks; penalties

Any person or publication that knowingly and maliciously makes, circulates or transmits to another or to others, any statements, rumor or indication, whether written, printed or by word of mouth, which directly or by inference leads to the discredit of the financial condition, or affects the solvency or credit of any bank, foreign bank, or branch of a bank or foreign bank doing business in Puerto Rico, or that advises, aids, procures or induces another to originate, transmit or circulate any such statement or rumor, shall be guilty of a felony, and upon conviction thereof, shall be punished by a fine of not less than one thousand dollars ($1,000), or a term of imprisonment of not more than five (5) years, or both penalties.
History —May 12, 1933, No. 55, p. 322, § 41; June 24, 1977, No. 113, p. 285, § 1; renumbered as § 40 and amended on Aug. 28, 1997, No. 108, § 47.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 152 - Affidavit of paid-in capital and reserve fund

No bank or foreign bank shall commence its business until its president or vice-president and manager have prepared and subscribed an affidavit stating that the full amount of its capital and reserve fund has been duly paid in cash. Said affidavit may be sworn to before any notary public or other official authorized to administer oaths in the municipality in which the bank has its main office, and it shall be filed with the Office of the Commissioner.
History —May 12, 1933, No. 55, p. 322, § 29; May 15, 1950, No. 430, p. 1056, § 10; Aug. 28, 1997, No. 108, § 32.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 153 - Protection through bonds

All the banks and foreign banks doing business in Puerto Rico shall provide themselves with protection and indemnity against burglary, embezzlement and other similar insurable losses. In case a bank or foreign bank refuses to comply with this requirement, the Commissioner shall make arrangements to provide said protection and indemnity, charging the cost thereof to the bank or foreign bank.
History —May 12, 1933, No. 55, p. 322, added as § 36a on May 15, 1950, No. 430, p. 1056, § 13; Aug. 28, 1997, No. 108, § 40.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 154 - Reports—Duty to report

Every bank or foreign bank doing business in Puerto Rico shall submit to the Commissioner the reports needed to perform the supervisory functions.
History —May 12, 1933, No. 55, p. 322, § 32; May 15, 1938, No. 199, p. 387, § 7; Sept. 7, 1961, No. 12, p. 353, § 1; Aug. 28, 1997, No. 108, § 35.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 155 - Reports—Penalties for failure to report and false reports

Should any bank or foreign bank fail to render its reports within the term fixed by the Commissioner, said bank shall be penalized with an administrative fine of up to one thousand dollars ($1,000) for each day said reports are delayed.
Should any bank or foreign bank fail to render its reports on two consecutive occasions, the Commissioner can request the cancellation of the license of said bank or foreign bank, as provided in subsection (c) of § 64 of this title.
Should any director, official or employee or a bank or foreign bank knowingly make a false entry or furnish data or information, or make any statement in any report requested by the Commissioner under the provisions of § 154 of this title, with the intent to harm or defraud the bank or any other company, person or corporate entity, or any individual or to deceive any bank official or examiner, or the Commissioner, said director, official or employee shall be deemed to be guilty of a felony and shall be punished by imprisonment for a term of not more than five (5) years.
Any person who knowingly, on his own behalf or in representation of a natural or juridical person, furnishes a bank or foreign bank false information or financial statements with the purpose of inducing the bank or foreign bank to grant credit, provide banking facilities or to conduct any business deal with the natural or juridical person in relation to whom said false financial statements were rendered or said false information was given, shall be guilty of a felony and upon conviction thereof shall be punished by a fine of not less than five thousand dollars ($5,000) or by imprisonment for not less than one (1) year, or both penalties, at the discretion of the court.
History —May 12, 1933, No. 55, p. 322, § 33; May 15, 1950, No. 430, p. 1056, § 11; Sept. 7, 1961, No. 12, p. 353, § 1; Aug. 28, 1997, No. 108, § 36.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 156 - Publication of annual reports; accounting system

It shall be the duty of every bank or foreign bank to publish annually in a newspaper of general circulation in the locality where it is established, a report of its financial condition within the term of one hundred and twenty (120) days from the closing of its books. Failure to publish said information shall make the bank subject to an administrative fine of one thousand dollars ($1,000) for each offense.
It shall be the duty of every bank or foreign bank to keep an accounting system which reflects the financial condition of the bank or foreign bank, and its relationship, operations and transactions with third persons, whether natural or juridical, and government entities, and to keep and maintain such books, records and documents which reflect said relationships, operations and transactions or photocopies of their contents which shall be deemed as originals for all purposes. Every bank or foreign bank may destroy such original books, records or documents after their contents have been photographed.
Every bank or foreign bank may destroy such books, records, documents and photographs with the authorization and under the supervision of the Commissioner or by any other method established by the Commissioner through an order to that effect, after a lapse of five (5) years from the date of the last entry made in such books or records or from the date on which any obligation may have ceased to be demandable under the documents in its possession; subject to the provisions of the §§ 2001 et seq. of Title 30; “Mortage Law”.
History —May 12, 1933, No. 55, p. 322, § 34; May 15, 1950, No. 430, p. 1056, § 12; June 21, 1962, No. 85; Aug. 28, 1997, No. 108, § 37.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 157 - Filing of annual reports

Every bank organized under §§ 1 et seq. of this title, now existing or hereafter organized, shall file in the Department of State annually and not later than April fifteenth, a report sworn to by the president or any other officer, or by any two (2) directors of the corporation, stating:
(1) The name of the bank;
(2) the location, town or city, street and number, if any, of its main office in Puerto Rico;
(3) the object or objects of its business;
(4) the amount of its authorized capital and type of stocks allowed, the amount actually issued and outstanding, and the amount of capital actually paid-in and how so paid; a general statement of all operations conducted and an itemized statement of its assets and liabilities;
(5) the names and mailing addresses of all directors and officers of the bank and the date when the term of office of each expires, and
(6) the date appointed for the next annual meeting of the stockholders for the purpose of electing its directors.
If a bank fails to render a complete report, or refuses or to amend the same when required by the Secretary of State, should the Commissioner determine that the report is incomplete or unsatisfactory, the Commissioner may impose an administrative fine of one thousand dollars ($1,000).
History —May 12, 1933, No. 55, p. 322, § 35; Aug. 28, 1997, No. 108, § 38; Dec. 26, 2006, No. 304, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 159 - Annual licenses; fees

Any bank or foreign bank which is doing business in Puerto Rico at present, or that is established in Puerto Rico in the future, shall renew the license for its main place of business in Puerto Rico on or before January 10 of each year, and for each branch, including mobile units, through the payment of an annual fee of one thousand dollars ($1,000) for each main office and of five hundred dollars ($500) for each branch or mobile unit.
History —May 12, 1933, No. 55, p. 322, § 38; May 12, 1936, No. 74, p. 374, § 13; June 30, 1971, No. 124, p. 375, § 3; Aug. 28, 1997, No. 108, § 44.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 11 - Examinations, Reports, and Licenses (§§ 151 — 160) › § 160 - Unauthorized banks

Should any corporation, as of the date of approval of this section, commence a banking business in Puerto Rico without having previously complied with the requirements contained herein, the Secretary of Justice, at the request of the Commissioner, shall institute the proper action in the Court of First Instance, Superior Part, of the place where such banking business has been established, against said person, firm or corporation; and if the court finds that the charges brought are true, it shall issue a decree ordering the immediate closing of the establishment thus charged, until all the requirements prescribed by §§ 1 et seq. of this title have been complied with, and in addition thereto, the court shall impose a fine of not less than two thousand dollars ($2,000) nor more than ten thousand dollars ($10,000), pursuant to the law.
History —May 12, 1933, No. 55, p. 322, § 36; Aug. 28, 1997, No. 108, § 39.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 201 - Receivership and liquidation because of unsound condition

If, as a result of an examination performed or a report rendered by an examiner, the Commissioner has evidence that a bank or a foreign bank is not in sound financial condition to continue doing business, or it is managed in such a manner that the public or the persons and entities having funds or securities in its custody are in danger of being defrauded, the Commissioner shall take over the management and administration of the bank, shall promptly appoint a receiver, that in the case of insured banks may be the Federal Deposit Insurance Corporation, and shall immediately report the details of and the grounds for his/her actions to the Governor of Puerto Rico. The receiver thus appointed shall manage the bank according to the provisions of §§ 1 et seq. of this title and the regulations promulgated thereunder.
Said receivership shall end with the total liquidation of the bank, if necessary, or when the operations thereof, as certified by the receiver, permit, in the judgment of the Commissioner, that the management of the bank be returned to its executives and officials, duly elected and appointed, under such circumstances as the Commissioner may stipulate. The Commissioner may fix a reasonable compensation for the services of the receiver and his/her employees. The determination of the Commissioner to take over the administration and management of a bank or to appoint a receiver may be reviewed by the Court of First Instance, San Juan Superior Part, by a petition filed within the term often (10) days from the date of the determination.
History —May 12, 1933, No. 55, p. 322, § 30; Sept. 7, 1961, No. 12, p. 353, § 1; Aug. 28, 1997, No. 108, § 33.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 202 - Receivership and liquidation because of refusal to submit to inspection, violation of law or charter

Should a bank or foreign bank refuse to submit its books, papers and affairs for the inspection of a duly appointed examiner, or if it is found that its charter or any law relative thereto has been violated, the Commissioner shall proceed to decree the liquidation and dissolution of said bank and shall appoint a receiver, that in the case of insured banks, may be the Federal Deposit Insurance Corporation, to conduct said liquidation and dissolution.
Once appointed, said receiver shall, under the direction of the Commissioner, take possession of the assets and liabilities, books (including the minutes), records, papers and files of every description belonging to said bank, and shall collect all pertinent loans, fees and claims of the bank and see to the payment of its obligations and debts and the necessary expenses of the receivership. He/she shall then proceed to liquidate the affairs of the bank as soon as possible, and to this end, may sell the personal and real property and other assets of the bank, subject to the orders and with the approval of the Commissioner; and said receiver shall continue to perform his/her duties as indicated until such a bank or foreign bank is finally liquidated; Provided, That at any time within the ten (10) days following the date on which the Commissioner has appointed said receiver, the bank may petition the Court of First Instance, San Juan Superior Part, to issue an order requiring the Commissioner to show cause as to why the court should not annul the appointment of the receiver made by him/her and enjoining him/her from continuing in possession of the bank. The Court of First Instance, San Juan Superior Part may, upon lawful cause, order the Commissioner to abstain from subsequent proceedings and to return the bank to its directors.
History —May 12, 1933, No. 55, p. 322, § 31; Sept. 7, 1961, No. 12, p. 353, § 1; Aug. 28, 1997, No. 108, § 34.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 204a - General penalty

Any violation of the provisions of §§ 1 et seq. of this title or of the provisions contained in the rules and regulations promulgated thereunder, or the orders and resolutions issued by the Commissioner, for which no penalty is provided therein, shall constitute a misdemeanor punishable by a fine of not more than five hundred dollars ($500) or by imprisonment that shall not exceed six (6) months, or both penalties at the discretion of the court.
History —May 12, 1933, No. 55, p. 322, added as § 42-A on June 24, 1977, No. 113, p. 285, § 2; renumbered as § 41(a) and amended on Aug. 28, 1997, No. 108, § 49.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 204b - Abbreviated title; use of the term “bank”

Any bank organized under the provisions of §§ 1 et seq. of this title and any foreign bank doing business in Puerto Rico under the provisions of §§ 1 et seq. of this title, before or after it has become effective, shall be governed by its provisions. Sections 1 et seq. of this title shall not impair, restrict or affect the rights, privileges and immunities conferred or acquired under to any law prior to the approval of this act. Sections 1 et seq. of this title shall neither impair, restrict or affect any pending lawsuits or causes of action that have arisen; nor the duties, restrictions, obligations and penalties imposed or required by prior laws or pursuant thereto.
History —May 12, 1933, No. 55, p. 322, added as § 42 on Aug. 28, 1997, No. 108, § 50.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 205 - Committee to take charge of and administer bank in emergency

Whenever in the opinion of the Governor of Puerto Rico, due to the excessive withdrawal of money or to other reasons not implying insolvency, any bank organized under the laws of Puerto Rico may be in imminent danger of being obliged to close its doors for lack of cash to meet the abnormal withdrawal of deposits, a Committee, which is hereby constituted, composed of the Governor of Puerto Rico, the Chairman of the Finance Committee of the Senate and the Chairman of the Finance Committee of the House of Representatives of Puerto Rico, is hereby authorized to direct the Secretary of the Treasury of Puerto Rico to take charge of such bank and to administer it on the basis of the restricted withdrawal of the deposits, or on any other basis that may be approved by said Committee, until said bank may be out of danger; Provided, That this provision shall not be applicable to any bank which, after having been examined by the Secretary of the Treasury of Puerto Rico and his report studied by the Committee, may be found to have lost three-fourths (¾) parts of its capital.
History —Mar. 21, 1933, No. 2, p. 184, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 206 - Closed bank—Plan for reopening, reorganization, or liquidation

The Secretary of the Treasury of Puerto Rico is hereby authorized to examine and recommend any plan for the reopening, reorganization, or liquidation of a closed bank, and likewise to examine and recommend any plan by virtue of which a bank organized in accordance with the laws of Puerto Rico may take charge of the liquidation or realization of the assets, and the payment of the liabilities of a closed bank, whether or not it is under receivership; Provided, That for the purposes of §§ 206—209 of this title, a closed bank shall be understood to be every bank that has closed or closes its doors to the public and, on the expiration of three (3) months counting from the day of its closing, is not able to resume the ordinary course of its banking operations, or which, in the opinion of the Secretary of the Treasury of Puerto Rico, may not be in a condition to be able to resume such operations after the time hereinabove fixed has expired.
History —Apr. 18, 1933, No. 17, p. 218, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 207 - Closed bank—Approval of plan

Said plan, when approved by such depositors and creditors of the closed bank the reopening, reorganization, liquidation, or realization of the assets, and the payment of the liabilities of which, is being considered, as represent not less than two-thirds (⅔) of the total amount of its credits and deposits after deducting such compensations as are proper under the law, and excluding the duly secured funds of the Commonwealth or Federal Government, municipalities, courts, and other dependencies of the Commonwealth or Federal Government, preferred credits, and other secured credits shall be returned to the Secretary of the Treasury of Puerto Rico for final approval thereof.
History —Apr. 18, 1933, No. 17, p. 218, § 2; Apr. 30, 1948, No. 60, p. 118, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 208 - Closed bank—Obligatory plan, except preferred creditors

After the said plan has been approved by the Secretary of the Treasury of Puerto Rico it shall be obligatory on all depositors and creditors of the said closed bank, except creditors having secured credits, trust funds, and preferred credits in general, for the payment of which there shall be stipulated in the said plan a form of liquidation and payment that does not prejudice their rights in any way; Provided, That the Governor of Puerto Rico, in the name of the Commonwealth Government, is hereby fully empowered to make agreements as to form of liquidation and payment of the credits of the Commonwealth Government, courts, municipalities, and other dependencies of the Commonwealth Government.
History —Apr. 18, 1933, No. 17, p. 218, § 3; Apr. 30, 1948, No. 60, p. 118, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 209 - Closed bank—Retroactive effect

All the provisions of §§ 206—209 of this title shall be applicable both to the banks that hereafter close their doors to the public as well as to those already closed when §§ 206—209 of this title take effect.
History —Apr. 18, 1933, No. 17, p. 218, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 210 - Borrowing by receiver or liquidator—Application to court

When the receiver, either temporary or permanent, or the liquidator of a closed bank or of a bank in liquidation believes that the assets of the said bank are sufficient to pay, wholly or partly, the claims of the depositors and of the creditors, but if, at that particular time and due to the condition of business, or for any other reason, it is impossible to realize said assets without a substantial sacrifice of their value, said receiver or liquidator may, from time to time, request from the court that appointed him or the court having jurisdiction in the matter, authorization to borrow such sum or sums of money as, in his judgment, may be advisable, guaranteeing said loan or loans by the conveyance, pignoration, and/or mortgaging of the property of the bank.
History —July 15, 1935, No. 12, p. 80, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 211 - Borrowing by receiver or liquidator—Contents of application

Said application shall contain a complete, detailed statement of the reasons on which he bases his application; the amount of the loan involved; the rate of interest to be paid thereon; the term; the kind of guaranty to be conveyed, pignorated, and/or mortgaged; the sum to be paid to the creditors and/or to the depositors; the percentage to be paid to each kind of creditors and/or to each depositor, and any other information which, in his judgment, may be pertinent.
History —July 15, 1935, No. 12, p. 80, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 212 - Borrowing by receiver or liquidator—Notice to Secretary of Treasury

Before filing said application, he shall send a true and exact copy thereof to the Secretary of the Treasury of Puerto Rico who shall thereafter be notified of all proceedings concerning said application and be given an opportunity to be heard in regard thereto.
History —July 15, 1935, No. 12 p. 80, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 213 - Borrowing by receiver or liquidator—Publication of notice

When the application has been filed, the court shall issue an order fixing the date for the hearing thereof, which date shall not be before the twenty (20) days following the date of the order, and a notice of said hearing shall be published at least twice a week in one or more newspapers of general circulation; Provided, That the court may order the hearing to be held before the expiration of the term of twenty (20) days; Provided, That just cause therefor is shown.
History —July 15, 1935, No. 12, p. 80, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 214 - Borrowing by receiver or liquidator—Authority to borrow

After the hearing is held, the court may authorize the receiver or liquidator to borrow the sum of money mentioned in the application, or a lesser sum, and it may likewise authorize the conveyance, pignoration, and/or mortgaging of sufficient bank property to guarantee said loan; and to authorize the lender to foreclose or realize the guarantee conveyed, pignorated, and/or mortgaged, at the maturity of the obligation, and to use the sums realized for amortizing the total amount of the loan; and to pay pro rata the creditors and/or the depositors of the bank, in accordance with the amount and kind of each claim; Provided, That in the case of banks not in receivership, the court shall not authorize said loans unless the claimants, representing not less than two-thirds (⅔) of the total amount owed to the creditors and depositors, grant their consent.
History —July 15, 1935, No. 12, p. 80, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 15 - Receivership and Liquidation; Emergency Provisions (§§ 201 — 215) › § 215 - Emergency regulations to prevent black market transactions

For the purposes of preventing black market dealings through credit or cash transactions, it is hereby provided that during any emergency period proclaimed by the President of the United States of America, any bank or foreign bank heretofore or hereafter established in Puerto Rico shall operate subject to the rules, regulations, limitations and restrictions prescribed and promulgated by the Secretary of the Treasury of Puerto Rico with the approval of the Governor of Puerto Rico. Any person, partnership, association or corporation, or any director, official or employee thereof violating the provisions of this section, or the rules and regulations promulgated hereunder, shall be guilty of a misdemeanor and shall, upon conviction, be punished by a fine not exceeding five thousand dollars ($5,000), and in the case of a natural person, he may, in addition to said fine, be punished by imprisonment for a term not exceeding five (5) years. Each day such violation subsists shall be considered a separate violation.
History —Mar. 7, 1951, No. 10, p. 22, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART I - Banks (§§ 1 — 278) › Chapter 16 - International Banking Center (§§ 231 — 232x) › § 232b - Interest rates and reserves

The Commissioner may not establish interest rates to be paid or charged by an international banking entity, nor require that deposit reserves be kept.
History —Aug. 11, 1989, No. 52, p. 178, § 4.