reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981g - Causes for denying license applications

No license shall be granted to any individual applicant, or to any applicant society or corporation, if such applicant or any associate or official thereof, or director of applicant corporation or employee thereof, has been guilty in any jurisdiction of the crime of forgery, fraud, misrepresentation, larceny, extortion, embezzlement, theft, robbery, bribe or any other crime implying moral turpitude. Additional cause for denying a petition for license shall also be that the applicant has previously been the object of revocation of any license or permit to operate any kind of business that involves the deposit of public funds.
History —June 27, 1968, No. 143, p. 409, § 8.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981h - Resident agent

Every licensee shall keep designated in writing before the Secretary a resident agent through whom he shall notify summons, notices, orders and resolutions of courts and agencies of the government in judicial and administrative proceedings.
History —June 27, 1968, No. 143, p. 409, § 9.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981i - Existing businesses

Any person who on the date of effectiveness of this act is engaged in the business of a collecting agency shall apply for a license within the thirty (30) days following the date in which this act takes effect. Within the term of 60 days from the date of effectiveness of this act such persons must satisfy all the requirements specified in this chapter to obtain the issuance of a license.
History —June 27, 1968, No. 143, p. 409, § 10.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981j - Changes in location of agency

(a) Fifteen (15) days before changing its location in a municipality, a collection agency shall notify the change [of address] to the Department of Consumers Affairs, in order to obtain its written authorization. The Secretary shall amend the license as it corresponds.
(b) It shall be necessary to obtain the authorization of the Secretary to move an agency from one municipality to another.
History —June 27, 1968, No. 143, p. 409, § 11; Oct. 26, 2005, No. 134, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981k - Revocation and relinquishment of license

(a) Revocation of license .—The Secretary may revoke a license on any grounds which may empower him to deny an application therefor, pursuant to this chapter. An additional cause for revocation of the license shall be the violation of any of the provisions of this chapter.
Any order revoking a license shall set forth the reasons on which such action is based and said order shall become effective after the lapse of thirty days from the date in which copy of the order has been sent by certified mail with acknowledgment of receipt to the licensee.
(b) Relinquishment of license.—Any licensee may relinquish the license or licenses by serving a written notice to the Secretary.
(c) Existing contracts.—No revocation or relinquishment of any license shall diminish or affect the obligations derived from any valid existing contract between the licensee and other persons.
(d) The Secretary shall publish in a newspaper of general daily circulation a notice relative to all revocation or relinquishment of license. The cost of the notice shall be on account of the license holder and shall be collected from the bond that the latter may have given.
History —June 27, 1968, No. 143, p. 409, § 12; June 21, 1971, No. 45, p. 132, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981l - Hearings

No license shall be revoked or suspended without the previous holding of a hearing. The Secretary shall notify by certified mail with acknowledgment of receipt the date set for said hearing at least thirty days in advance of the said date.
History —June 27, 1968, No. 143, p. 409, § 13.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981m - Records

Each licensee shall keep such records of accounts to be collected as well as the collections made under this chapter which permit the Secretary to determine if the licensee is complying with same and shall keep, for the purposes of this chapter, said records for at least three years after making the last entry therein. The accounting system of each licensee shall adjust to the principles of accounting generally accepted and shall contain the information that the Secretary may require.
History —June 27, 1968, No. 143, p. 409, § 14.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981n - Faculties to investigate; enforcement through judicial order

In the exercise of his duties the Secretary of the Treasury is authorized to summon witnesses and to administer oaths and take sworn declarations and in compliance with these provisions he may subpoena witnesses; and may compel the witnesses to produce books, letters, documents, papers, records and all other articles that may be considered essential for a complete knowledge of the matter under investigation.
In case of contumacy or refusal to obey a summons issued by the Secretary of the Treasury or by the official designated by him, any competent part of a court may request the Secretary of the Treasury to issue against said person an order summoning him to appear before the Secretary of the Treasury or before the official designated by the latter, to produce evidence, if so ordered, or to declare on the matter under investigation. Said person shall incur in contempt of court if he disobeys the order of the court.
History —June 27, 1968, No. 143, p. 409, § 15.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981o - Orders to comply or to desist

Whenever the Secretary suspects that any person is violating or intends to violate this chapter, he may issue an order upon previous notice and hearing, requiring said person to comply with the provisions of this chapter or to cease, or desist violating same. The party or parties shall be notified in writing at least five days in advance of the date, hour and place of the hearing and the nature of the violations charged.
History —June 27, 1968, No. 143, p. 409, § 16.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981p-1 - Congruity with federal law

The provisions of this chapter shall be interpreted in congruity with the “Fair Debt Collection Practices Act”, 15 USC §§ 1692 et seq.
History —June 27, 1968, No. 143, p. 409, added as § 17a on Sept. 3, 1996, No. 179, § 6.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981p-2 - Claims

Actions to claim compensation for violations of the provisions of this chapter under §§ 2995, 3023, and 5141 of Title 31, known as the Civil Code, may be filed at the Court of First Instance or the Department of Consumer Affairs, at the choice of the claimant.
History —June 27, 1968, No. 143, p. 409, added as § 17b on Sept. 3, 1996, No. 179, § 7.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981q - Regulation

The Secretary shall prepare those rules and regulations as he may deem necessary to carry out the purposes of this chapter.
History —June 27, 1968, No. 143, p. 409, § 18.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981r - Penalties

The Secretary is hereby authorized to impose and collect administrative fines of not less than fifty dollars ($50) nor more than five hundred dollars ($500) for any violation to the provisions of this chapter or to the provisions contained in the rules and regulations promulgated thereunder.
Whenever the nature of the violation of this chapter or of the rules and regulations, or orders and resolutions issued by the Secretary may justify it, instead of the imposition of the administrative fine authorized in the preceding paragraph, the Secretary shall promote a criminal action against the violator.
Any violation to the provisions of this chapter or to the provisions contained in the rules and regulations promulgated thereunder or to the orders and resolutions issued by the Secretary, shall constitute a misdemeanor and shall be punished by a fine of not more than one thousand dollars ($1,000) or by imprisonment in jail not to exceed two years, or both penalties in the discretion of the court.
History —June 27, 1968, No. 143, p. 409, § 19.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 45 - Collecting Agencies (§§ 981 — 981s) › § 981s - Revision

Any determination of the Secretary based on this chapter or in any rule or regulation issued by the Secretary under this chapter may be revised through certiorari in the Court of First Instance, San Juan Part, upon a petition filed by the aggrieved party within 30 days from the date of the notice of the Secretary.
History —June 27, 1968, No. 143, p. 409, § 20.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 47 - Trading Stamps (§§ 991 — 991b) › § 991 - Illegal actions

It shall constitute a public offense that any person, firm, partnership or corporation, use, issue, distribute, give out, supply, exchange, redeem, or that any firm, person, partnership or corporation, provide, supply or furnish to another person, firm or corporation so that the latter may use, distribute, issue, exchange or redeem, jointly in, with or for the sale of goods or merchandise, articles, wares or services, any stamp, coupon, letter, certificate, card, slip of paper, ticket or other similar promotion device, which entitles the buyer receiving same with the sale of goods, articles, merchandise, wares or services to solicit or request from any person, firm, partnership or corporation, any goods, article, merchandise, ware, money in cash, United States Government bonds, United States Government stamps, or services, with the delivery or presentation of any number of such stamps, coupons, letters, certificates, cards, slips of paper, tickets or other similar promotion device.
It shall likewise be unlawful that any person, firm, partnership or corporation, redeem or exchange any stamp, coupon, letter, certificate, card, slip of paper, ticket or other similar promotion device, whose use, distribution, issuance, or supply has been declared unlawful by the previous provisions of this section.
History —June 28, 1969, No. 111, p. 315, § 1, eff. 15 days after June 28, 1969.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 47 - Trading Stamps (§§ 991 — 991b) › § 991a - Exceptions

Sections 991—991b of this title shall not apply to the use, issuance, distribution, exchange, supply of any stamp, coupon, ticket, certificate, letter, card, slip of paper or other similar promotion device, issued, distributed, supplied or exchanged by a manufacturer or packer in regard to the sale of his products manufactured or packed when such stamps, coupons, tickets, certificates or cards, slips of paper or other similar promotion device, can be exchanged, without money in cash or accompanied by money in cash for any product or services of said packers or for a particular product or service which shall be specified, although not packed or manufactured by the said packers or manufacturers, or by cash or credit towards purchase.
History —June 28, 1969, No. 111, p. 315, § 2; Feb. 17, 2003, No. 75, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 47 - Trading Stamps (§§ 991 — 991b) › § 991b - Penalties

Any person, firm, partnership or corporation, who violates the provisions of §§ 991—991b of this title shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not to exceed $ 1,000 or by confinement in jail for a term not to exceed 90 days, or by both penalties, in the discretion of the court; Provided, That each day that said persons, firms, partnerships or corporations incur in the violations herein provided, such violations shall constitute different and separate offenses; and, Provided, further, That when a corporation, firm, partnership or other legal entity violates any of the provisions of §§ 991—991b of this title, the directors, officials, trustees, managers or agents of said firm, partnership or corporation or other legal entity who have authorized, ordered or committed the acts which have constituted such violation shall also be subject, in their personal character, to the penalties specified in §§ 991—991b of this title for such violation.
History —June 28, 1969, No. 111, p. 315, § 3, eff. 15 days after June 28, 1969.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996 - Short title

The short title of this chapter shall be: “Personal Property Leasing Institutions Act”.
History —May 8, 1973, No. 20, p. 71, § 1; Aug. 12, 1994, No. 65, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996a - Definitions

For the purposes of this chapter the following terms shall have the meanings hereinbelow set forth:
(1) Person. — Shall include individuals, partnerships, associations, trusts, corporations and any other legal entities.
(2) Secretary. — Shall mean the Secretary of the Treasury of the Commonwealth of Puerto Rico.
(3) Department. — Shall mean the Department of the Treasury of the Commonwealth of Puerto Rico.
(4) License. — Shall mean the authorization issued by the Commissioner to engage in the business of leasing personal property in accordance with the provisions of this chapter.
(5) Grantee. — Shall mean a person to whom a license has been issued under this chapter.
(6) Office of the Commissioner. — Shall mean the Office of the Financial Institutions Commissioner of the Commonwealth of Puerto Rico created by virtue of §§ 2001 et seq. of Title 7.
(7) Commissioner. — Shall mean the Financial Institutions Commissioner of the Commonwealth of Puerto Rico.
History —May 8, 1973, No. 20, p. 71, § 2; July 2, 1987, No. 91, p. 355, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996b - License—Scope

No person shall engage directly or indirectly in the personal property leasing business in the Commonwealth of Puerto Rico without obtaining previously a license issued by the Commissioner as provided below, except those persons or entities whose assets devoted to the personal property lease business have a value of less than ten thousand dollars ($10,000) or who engage exclusively in the underwriting of personal property leasing contracts for terms of less than one (1) year.
History —May 8, 1973, No. 20, p. 71, § 3; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 2; Aug. 12, 1994, No. 65, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996c - License—Application and fees; resident agent

(a) Application and license fees .—The application for the issuance of a license shall be made under oath. It shall state the address where the main office of the business shall be established and shall also contain the information required by the Commissioner, including the identification of each applicant, in order to provide the grounds for the investigations provided in § 996d of this title.
Upon filing the application, the applicant shall pay five hundred dollars ($500) to the Commissioner as an examination fee and five hundred dollars ($500) for the annual license provided in § 996e of this title, for the current calendar year, in a certified check payable to the Secretary of the Treasury. If the license is issued after June 30 of any year, the annual fee shall be two hundred and fifty dollars ($250) for that year.
(b) Resident agent.—Every grantee shall file with the Commissioner a written appointment of a resident of Puerto Rico with the name, business, residential and mailing addresses, as his agent for the service of any judicial proceeding or other proceeding or legal notice, unless the grantee has appointed another agent for these purposes under any other law of Puerto Rico, in which case the grantee shall submit to the Commissioner, the name, business, residential and mailing addresses of said agent.
History —May 8, 1973, No. 20, p. 71, § 4; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 3.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996d - License—Procedure

(a) Issuance of license.—Upon the filing of application and payment of fees, the Commissioner shall make the necessary investigations, and should he find that the financial solvency, experience, character and general ability of the applicant are such as to justify the belief that the business shall be administered legally and fairly within the scope of the law, and that the issuance of the license shall be convenient and profitable for the community within which business shall operate, he shall approve said application and shall issue a license to the applicant which shall be the authorization to operate in accordance with the provisions of this chapter.
(b) Denial of license.—Should the Commissioner deny the application, the investigation fees shall be withheld by the Commissioner and the annual license fee shall be returned to the applicant.
(c) Existing businesses.—Any person who on the date of effectiveness of this act is engaged in the business of personal property lease may continue in such business, but shall apply for a license within 30 days following the date on which this act takes effect. Within the term of sixty (60) days on and from the date of effectiveness of this act, such person shall meet all requirements imposed by law or by regulation to attain the issuance of a license.
History —May 8, 1973, No. 20, p. 71, § 5; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 4.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996f - License—Revocation, suspension or waiver

(a) Revocation of license .—After due notice and hearing to the grantee, the Commissioner may revoke any license if he finds that:
(1) There is any fact which if it had existed or been known at the time the application was filed, would have justified the nonissuance of the license, or
(2) the grantee has violated any of the provisions of this chapter, after its compliance was required by an order issued under the provisions of § 996i of this title.
The hearing shall be held no later than ten (10) days after the written notice by certified mail. The date, time and place of the same shall be stated in said notice and the grounds for the revocation shall be succinctly stated.
(b) Revocation order.—Every revocation of license and its date of effectiveness shall be established through written notice which shall contain findings of fact, conclusions of law a copy of which shall be remitted to the grantee. Said order, findings and conclusions, and the evidence considered by the Commissioner shall be filed in the public records of the Officer of the Commissioner.
(c) Temporary suspension of license.—Should the Commissioner determine that there is probable cause for the revocation of any license, he may suspend said license temporarily for a period not to exceed twenty (20) days after due notice and hearing, while the proper investigation is being carried out.
(d) Waiver of license.—Any grantee may waive a license through written notice to the Commissioner.
(e) Existing contracts.—Any license revoked, suspended or waived shall neither diminish nor affect the obligations derived from any valid contract existing between the grantee and other persons.
History —May 8, 1973, No. 20, p. 71, § 7; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 6.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996g - Powers of the Commissioner

The Commissioner or his authorized representatives or agents shall have power to:
(1) Carry out investigations at the request of an interested party or on his own initiative, relative to the alleged violations of this chapter, as well as any other investigations necessary for the proper administration of same.
(2) Require persons engaged in the lease of personal property to keep the records, data and blank forms and render the reports that he may deem necessary to fulfill the purposes of this chapter.
(3) Issue notices and summon the appearance of witnesses and the production of the information that he deems necessary for the administration of this chapter.
(4) Administer oaths and receive testimonies, data or information.
(5) Examinations. — Audit the books, records and registries of any office to which a license has been issued under the provisions of this chapter, for the purpose of determining if the businesses carried out meet the requirements established by this chapter or its regulations. The grantee shall pay the Commissioner an auditing fee of three hundred dollars ($300) for each day or fraction thereof for each inspector intervening in each auditing, in addition to the expenses incurred in per diems and mileage in accordance to the norms established for officials and employees of the Commonwealth of Puerto Rico, through a certified check payable to the order of the Secretary of the Treasury.
If a summons issued by the Commissioner is not duly complied with, the Commissioner may appear before the Court of First Instance of Puerto Rico and request it to order the compliance thereof. The Court of First Instance shall have the power to punish as contempt of court any noncompliance of its orders, making compulsory the appearance of witnesses or the production of any data or information that the Commissioner may have previously required.
No natural person may refuse to comply with a summons from the Commissioner, or a judiciary order thus issued by alleging that the testimony, data or information so required could incriminate him or lead to a penalty, but shall not be criminally prosecuted with regard to any transaction, matter or thing in connection with which he may have given testimony or produced data or information.
History —May 8, 1973, No. 20, p. 71, § 8; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 7; July 19, 1998, No. 154, § 2.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996h - Duties of the grantee

Persons engaged in the leasing of personal property shall be bound to:
(1) Place at the disposal of the Commissioner the accounting books, records, documents and any other data that he may deem necessary and allow the Commissioner or his representatives free access to the property, facilities and places of operation.
(2) Preservation of documents. — Each grantee shall keep those records of leases that may allow the Commissioner to determine if the grantee is complying with this chapter and shall preserve said records for the purposes thereof, for at least four (4) years after making the last entry in them.
(3) Reports. — Every grantee shall submit those reports required by the Commissioner, on the dates and under the terms that the Commissioner provides.
History —May 8, 1973, No. 20, p. 71, § 9; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 8; July 19, 1998, No. 154, § 3.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996i - Orders to cease and desist

Whenever the Commissioner has grounds to believe that any person is violating or attempting to violate this chapter, he may issue an order, after due notice and hearing, requiring said person to comply with the provisions thereof or to cease and desist from violating it. The parties shall be notified, in writing, no less than five (5) days in advance, of the date, time, and place of the hearing and the nature of the violation. The Commissioner may prescribe the corrective terms and conditions that he may determine from the evidence on hand to be in benefit of the public interest.
The orders issued shall be served on the proper defendant at his place of business or by certified mail to his last known address.
History —May 8, 1973, No. 20, p. 71, § 10; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 9.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996j - Regulations

The Commissioner shall prescribe the regulations that he deems necessary for the fulfillment of the provisions of this chapter.
History —May 8, 1973, No. 20, p. 71, § 11; July 2, 1987, No. 91, p. 355, § 10.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996k - Penalties

The Commissioner is hereby authorized to levy and collect administrative fines of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for any violation of the provisions of this chapter or of the provisions contained in the rules and regulations promulgated hereunder.
When the nature of the violation of this chapter or of the rules or regulations, or orders and resolutions issued by the Commissioner do so justify, the Commissioner shall promote criminal action against the violator in lieu of the administrative fine authorized by the preceding paragraph.
Any violation of the provisions of this chapter or of the provisions contained in the rules and regulations promulgated hereunder or of the orders and resolutions issued by the Commissioner shall constitute a misdemeanor, and be punishable by a fine of not more than five hundred dollars ($500) or by imprisonment for a term not to exceed six (6) months, or both penalties in the discretion of the court.
History —May 8, 1973, No. 20, p. 71, § 12; July 2, 1987, No. 91, p. 355, § 11.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49A - Lease of Personal Property (§§ 996 — 996l) › § 996l - Review

Any decision of the Commissioner based on the law, or on any rule or regulation issued by the Commissioner hereunder, may be reviewed by certiorari filed by the injured party in the Court of First Instance, San Juan Part, within thirty (30) days on and from the date of notice of the decision of the Commissioner to the injured party.
History —May 8, 1973, No. 20, p. 71, § 13; July 23, 1974, No. 135, Part 1, p. 634, § 2; July 2, 1987, No. 91, p. 355, § 12.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997 - Definitions

The following words and phrases as used in this chapter shall have the meaning hereinbelow expressed:
(a) Multi-level distribution company. — Means any natural or [juridical] person who grants in exchange for an economic retribution, a franchise or concession for the distribution and/or sale of properties or services, to dealers who serve as intermediaries to enlist other dealers to the program and where other benefits or economic incentives are also offered for the purpose of promoting said enlistment.
(b) Dealer. — Means any natural or [juridical] person to whom is granted a franchise or concession for the distribution and/or sale of properties or services as dealer, agent or participant for the purpose of developing a market therefor in Puerto Rico.
(c) Distribution contract. — Means the relationship established between a dealer and a multi-level distribution company whereby the dealer takes charge of the distribution and/or sale of properties or services in Puerto Rico.
(d) Benefit. — Means any retribution, wage, incentive, commission, dividend, consideration, bonus, agent’s fee, reimbursement, deduction or any other type of profit with regard to a distribution contract.
History —June 5, 1973, No. 96, p. 409, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997a - Prohibited activities

No multi-level distribution company may, by itself or through dealers, agents or participants, carry out the following activities in the Commonwealth of Puerto Rico:
(a) Operate or directly or indirectly participate in the operation of any marketing program in which the benefits of the participants depend primarily on the continuous and successive enlistment of other participants and where the distribution and/or sale of properties or services is not required as a prerequisite to obtain said benefits.
(b) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants in consideration only for the search and enlistment of new participants.
(c) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants unless said persons exercise actual control and effective supervision in the distribution, sale, delivery or remittance of the merchandise or services to an ultimate consumer.
(d) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants when such payment depends or is caused to depend on any aleatory or lucky element that prevails over the ability or judgment of said persons; or when such ability or judgment does not influence in any degree the obtainment of the benefits to be received by said persons, or when the dealer, agent or participant does not have a sufficient degree of control over the operations performed as to substantially affect the benefits to be received by him.
History —June 5, 1973, No. 96, p. 409, § 2.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997b - Contracts

(1) Every distribution contract shall contain clauses permitting the dealer to cancel the contract:
(a) At any time and for any reason within the term of ninety (90) days after the signature thereof, and/or
(b) at any time upon showing noncompliance with any of the essential obligations of the distribution contract on the part of the multi-level distribution company or any act or omission by the latter affecting adversely the interests of the dealer in the development of the market of the properties or services.
(2) The notice of cancellation shall be made in writing and shall be sent to the company by registered mail.
(3) At the time of the cancellation of the contract, the multi-level distribution company shall be bound to perform the following:
(a) Reacquire the total of the products acquired by the dealer which are in his possession and in good condition at a price of not less than ninety percent (90%) of their original net cost.
(b) Return to the dealer not less than ninety percent (90%) of the original net cost of any services acquired by him.
(c) Return to the dealer not less than ninety percent (90%) of any sum paid by him for the purpose of participating in the business.
History —June 5, 1973, No. 96, p. 409, § 3.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997c - Reasonable stock of merchandise available

No multi-level distribution company may, by itself or through its dealers, agents or participants, require the acquisition of products or services or payment of any sum as an indispensable condition to participate in the business, unless the company, its dealers or agents have a reasonable stock of merchandise available, or are in a condition readily to render services.
History —June 5, 1973, No. 96, p. 409, § 4.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997d - Enlistment of new participants; information on gains or benefits obtainable

No multi-level distribution company may, directly or indirectly through its dealers, agents or participants, use as propaganda in the enlistment of new participants information on the profits or benefits obtained in the past by its dealers, agents or participants, or assure to prospective participants in this type of business a given amount of profits or benefits, unless the profits or benefits mentioned are those obtained at present by a reasonable number of participants in the Commonwealth or a similar geographical area and reflect the average profits and benefits obtained by them through the distribution and/or sale of properties or services. Likewise it is prohibited to make use of propaganda aimed at showing the facility of enlisting and retaining new participants and their operational or economic success.
History —June 5, 1973, No. 96, p. 409, § 5.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997e - Injunction

The Secretary of Justice of the Commonwealth of Puerto Rico shall have power to bring injunction or any other kind of proceeding to prevent, avert, detain and punish violations of this chapter or to obtain any other proper remedy.
History —June 5, 1973, No. 96, p. 409, § 6.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997f - Noncompliance with orders; penalties

Noncompliance of an order of the court to enforce the provisions of this chapter shall be punishable as contempt of court and the person guilty of said violation shall be sentenced to pay a fine not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) for each day elapsed without complying with the court’s order; Provided, That the provision of this section shall not be construed as a limitation of the powers inherent in the courts to enforce its orders.
History —June 5, 1973, No. 96, p. 409, § 7.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997g - Provisions of public order; waiver prohibited

The provisions of this chapter are of a public order and therefore may not be waived.
History —June 5, 1973, No. 96, p. 409, § 8.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49B - Multi-Level Distribution Companies (§§ 997 — 997h) › § 997h - Prescription of action

Any action arisen from this chapter shall prescribe after three years reckoning from the date of the definitive expiration of a distribution contract.
History —June 5, 1973, No. 96, p. 409, § 9.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998 - Rate of interest

No natural or [juridical] person shall demand or receive in or for loans or renewals of money or merchandise, or in or for any kind of obligation, agreement or contract, directly or indirectly a rate of interest exceeding nine dollars ($9) annually on each one hundred dollars ($100) or on its equivalent in value, when the principal, the object of the loan or of the agreement, obligation or contract does not exceed $3,000 and eight dollars ($8) annually for each one hundred dollars ($100), when exceeding such amount.
History —Oct. 15, 1973, No. 1, p. 849, § 1.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998b - Interest exceeding stipulated maximum rates

Notwithstanding the provisions of § 998 of this title and in § 4591 of Title 31, there may be demanded or received, in or for loans or extensions of money or merchandise, or in or for any type of obligation, agreement or contract, an interest rate higher than the maximum rates stipulated in § 998 of this title, as well as other charges to compensate for research, analysis and loan negotiation expenses, provided they are maximum rates of interest or charges fixed by the Financing Board created by § 2008 of Title 7.
History —Oct. 15, 1973, No. 1, p. 849, § 3; Oct. 23, 1999, No. 319, § 8.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998f - No interest or interest less than that fixed by law or regulation

The fact that no interest or charge has been fixed in an obligation, contract or agreement, or that the interest or charge set in said obligation, contract or agreement is at an equal or lower rate than that fixed by law or regulation shall not be conclusive evidence of the rate of interest or charge fixed and evidence on the circumstances under which the contract, obligation or agreement was made can be admitted to prove the illegality of the interest or charge really demanded or received.
History —Oct. 15, 1973, No. 1, p. 849, § 7.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998g - Construction with other laws

The provisions of this chapter shall in no way affect, modify or alter the civil liability that any natural or juridical person may incur under the articles of the Civil Code of Puerto Rico that deal with the fixing of legal interest and the manner of recovering the excess amounts paid thereon, it being understood, however, that the interest rates or charges the Board may fix, or the determination of the Board of not fixing maximum interest rate and leaving the market open to free competition in such case, shall prevail over the provisions of said Code.
When a borrower prepays a debt, he/she shall not be charged interest on that part of the principal paid in advance. In such case, however, the creditor may charge the debtor an adequate compensation. The Financing Board is hereby authorized to prescribe, through regulations, the terms, rates and/or conditions needed for the computing of said compensation. To such effect, the Board shall take into consideration the prevailing market conditions and harmonize them with the debtor’s right to protection against the assessment of excessive charges.
History —Oct. 15, 1973, No. 1, p. 849, § 8; June 2, 1976, No. 120, p. 349; Oct. 23, 1999, No. 319, § 12.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998j - Penalties

Any natural or juridical person who violates the provisions of §§ 998—998k of this title or of the regulations prescribed by the Financing Board from time to time, shall be subject to the penalties and sanctions provided in §§ 2001 et seq. of Title 7.
History —Oct. 15, 1973, No. 1, p. 849, § 11; Oct. 23, 1999, No. 319, § 15.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998k - Maximum rates of interest or charges in effect

Until the Board fixes maximum rates of interest or charges for a specific area, sector or line of economic activity, the legislation regarding the fixing of maximum rates of interest or charges in effect at the time this act is approved, applicable to such area, sector or line shall continue with full force and effect.
History —Oct. 15, 1973, No. 1, p. 849, § 13.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998l - State usury laws; inapplicable in Puerto Rico

For the purpose and intention that the provisions of §§ 501(a)(1), 511, 521, 522, 523, and 524 of Public Law No. 96-221, approved by the Congress and signed by the President of the United States of America on March 31, 1980, cease to be applicable to Puerto Rico, and to render ineffective the preemption established by Public Law No. 96-221, from the date this act takes effect, it is here expressly provided that the Commonwealth of Puerto Rico does not wish the applicability of:
(a) The provisions of § 501(a)(1) with regard to loans, mortgages, credit sales, and advances made within its territorial limits, pursuant to the provisions of § 501(b)(2) of Public Law No. 96-221;
(b) the provisions of § 511 on business and agricultural loans of Public Law No. 96-221, to loans made within its territorial limits, pursuant to the provisions of § 512(2) of said act;
(c) the amendatory provisions included in §§ 521, 522, and 523 on other loans, of Public Law No. 96-221, pursuant to the provisions of § 525 of said act with regard to loans made within its territorial limits, and
(d) the provisions of § 524 on credits granted by institutions organized under the Small Business Investment Act of 1958, pursuant to the provisions of § 524 of Public Law No. 96-221.
History —June 14, 1980, No. 3, p. 871, § 1, eff. 10 days after June 14, 1980.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998m - Definitions

For the purposes of §§ 998 l —998q of this title, the following shall be the definitions given to the terms set forth hereinafter:
(a) Financing charges. — Is any charge levied other than discounts, for the sale of a credit in a secondary market, attorney’s fees and incidental expenses, such as title search, title insurance, appraisal, credit reporting, and others, excluding interest accrued by the credit.
(b) Prime rate. — Is the short-term rate of interest charged by the principal banks of New York City to their best commercial or industrial clients. If the prime rate were not uniform for all the principal banks, the average rate charged by the following banks: The Chase Manhattan Bank, the Chemical Bank, Citibank, the Manufacturers Hanover Trust, and the Morgan Guaranty Trust Company shall be considered as the prime rate.
(c) Personal loans. — Are loans made to individuals for personal or family purposes.
(d) Annual rate of interest computed on the add-on credit amount for the full term thereof. — For the purpose of determining this rate, the amount of interest for the entire credit payment period shall be added onto the principal amount of the credit, and divided among the number of installments to be paid, to obtain the monthly payment to be made by the debtor. In order to determine what part of each monthly payment corresponds to interest, a chart shall be prepared using the method known as the addition of digits. The difference between the monthly payment and the interest thus determined shall be applied to the principal of the loan.
(e) Conventional loans. — Are those mortgage loans for constructing or acquiring housing, or its refinancing, which are not insured by the Federal Housing Administration or the Veterans Administration.
(f) Credit. — Are loans or any other form of debt through which short- or long-term monetary resources may be obtained for future repayment.
(g) Federal Home Loan Mortgage Corporation (FHLMC). — Is the quasi-government agency or corporation specialized in the acquisition of conventional mortgage loans.
History —June 14, 1980, No. 3, p. 871, § 2, eff. 10 days after June 14, 1980.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998o - Effectiveness of definitions, maximum rates of interest and finance charges

The provisions of §§ 998m and 998n of this title shall remain in effect until the Financing Board, created by §§ 2001 et seq. of Title 7, approves regulations for the purpose of amending the same.
History —June 14, 1980, No. 3, p. 871, § 4; Oct. 23, 1999, No. 319, § 17.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998p - Repeal

Regulation No. 19-4 approved by the Board for Regulating Rates of Interest and Financing Charges on April 2, 1980, is hereby repealed.
History —June 14, 1980, No. 3, p. 871, § 5, eff. 10 days after June 14, 1980.
2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 49C - Interest Rates or Charges (§§ 998 — 998q) › § 998q - Violation of provisions; penalties

Any natural or juridical person who violates the provisions of §§ 998 l —998q of this title shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a minimum fine of fifty dollars ($50), and a maximum fine of five hundred dollars ($500), or by imprisonment in jail for a term of not less than thirty (30) days nor more than six (6) months, or by both penalties, in the discretion of the court. Each transaction in violation of the above provisions shall constitute a separate infringement and shall be punished as such.
History —June 14, 1980, No. 3, p. 871, § 6, eff. 10 days after June 14, 1980.