reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1255 - Investment in proprietary interests of a fund—Gains in sale, exchange or other disposition

(a) Every gain in the sale, exchange or other disposition other than a transfer through a gift or legacy, of an investment in eligible proprietary interests in an investment capital fund or a designated entity, including the transfer of eligible proprietary interests in a fund caused by the fund’s total liquidation, shall be deemed as a capital gain and will be taxed pursuant to the provisions of § 1252 of this title.
(b) Notwithstanding the provisions of subsection (a), in the event the total product of the sale, exchange or other disposition that is not a transfer by gift or legacy is reinvested in eligible proprietary interests of another fund or a designated entity within the term of ninety (90) days from the day of said sale, exchange or other disposition, the gain shall not be subject to income taxes.
(c) When the sale or exchange of an investment in eligible proprietary interests in a fund or a designated entity results in the nontaxation of the gain derived by the sale or exchange of the investment in eligible proprietary interests in the fund or the designated entity pursuant to subsection (b), the adjustments to the base shall include a reduction for an amount equal to that of the gain not acknowledged in the sale of the investment in eligible proprietary interests in the fund or a designated entity upon determining the adjusted base of the new eligible proprietary interests in a fund or a designated entity acquired by the investor on any date following the sale of the investment in eligible proprietary interests in the investment capital fund or the designated entity.
History —Oct. 6, 1987, No. 3, p. 840, § 15, renumbered as § 16 and amended on July 11, 1996, No. 70, § 16.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1256 - Investment in proprietary interests of a fund—Credit for losses

(a) Every loss from the sale, exchange or other disposition of an investment in eligible proprietary interests of a fund or a designated entity shall be deemed as a capital loss.
(b) Notwithstanding the provisions of subsection (a), the taxpayer, at his/her option, may take the amount of said loss as a credit against the tax determined in the taxable year of said loss and for the following four (4) taxable years. The amount of the loss that he/she may take as a credit during each one of the abovementioned taxable years shall not exceed one third (1 / 3) of the amount of the loss.
(c) Any excess in the credit assigned by subsection (b) on the tax determined for said five (5) taxable years shall not be taken as a deduction or credit, or backdated or carried over to another taxable year.
(d) Assignment of credit. —
(1) The credit for loss provided by subsection (b) of this section may be assigned, sold or otherwise transferred, in whole or in part, by an investor to any other person. The person acquiring the credit may claim a credit against his/her income tax for the amount of the credit assigned.
(2) The property moneys or securities received by the assigning investor shall be exempted from taxation under §§ 8401 et seq. of Title 13, up to the amount of the credit for loss assigned.
(3) When the person acquiring the credit for loss also acquires a proprietary interest in the fund or designated entity with regard to which the credit for loss arises, the tax base of said purchaser of the proprietary interest shall not be increased by the amount of the credit for loss acquired.
(4) The investor who has assigned all or part of his/her credit for loss, and the person acquiring said credit for loss shall notify the assignment to the Secretary through a statement to such effects, which shall be included with their respective income tax returns for the year in which the assignment of the credit for loss was made. The statement shall include such information required by the Secretary through regulations.
History —Oct. 6, 1987, No. 3, p. 840, § 16, renumbered as § 17 and amended on July 11, 1996, No. 70, § 17.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1257 - Investment in proprietary interests of a fund—Transfer of title

The transfer of proprietary interests in an investment capital fund or in a designated entity shall be subject to the requirements established by the Commissioner through regulations. The regulations to be promulgated by the Commissioner shall provide for the reporting by the fund or the designated entity to the Secretary of any transfer of proprietary interests in the fund or the designated entity of which said fund or designated entity has knowledge.
History —Oct. 6, 1987, No. 3, p. 840, § 17, renumbered as § 18 and amended on July 11, 1996, No. 70, § 18.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1258 - Other exemptions

(a) Personal property tax. — The investments in proprietary interests in funds or in designated entities, or in shares in trusts created by the Bank pursuant to § 1253 of this title, shall be exempted from personal property taxes in Puerto Rico and shall not have to be listed in the personal property tax return, if any, that the investor is bound to file. The investment capital funds and trusts created by the Bank pursuant to § 1253 of this title shall be exempted from personal property taxes in Puerto Rico, and said entities shall be exempted from the requirement to file a personal property return in Puerto Rico.
(b) Municipal license tax. — The income received by investment capital funds and trusts created by the Bank pursuant to § 1253 of this title, as well as the distributions such entities and the designated entities make to their investors, shall not be deemed as “gross income”, nor shall they be included in the definition of “volume of business” for the purposes of §§ 651 et seq. of Title 21, known as the “Municipal License Tax Act”.
(c) Tax on estates and gifts. — The proprietary interests in an investment capital fund, in a designated entity, or in a trust created by the Bank pursuant to § 1253 of this title, shall be deemed to be an investment in property located in Puerto Rico for the purposes of Sections 52 and 206 of Act No. 167 of June 30, 1968, and of §§ 9152 and 9207 of Title 13.
History —Oct. 6, 1987, No. 3, p. 840, § 18, renumbered as § 19 and amended on July 11, 1996, No. 70, § 19.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1259 - Regulations

(a) In addition to the other regulations provided in this chapter, the Commissioner shall adopt regulations to govern what regards to:
(1) The commissions or sales charges that will be collected for the purchase or sale of proprietary interests in a fund or a designated entity.
(2) The maximum percentage of the money of an investment capital fund or designated entity that can be used and attributed to its administrative expenses, to professional and consulting services and others related to its investments.
(3) The prospectus, pamphlet, circular, newsletter, advertisement or any other sales literature or advertising material addressed to, or intended for distribution to potential investors, including the clients or prospective clients of an investment advisor, to watch over and closely supervise all types of advertising and publicity developed by each fund or designated entity, in order to protect the participating investors at all times.
(4) Any other rules and regulations needed to ensure compliance with this chapter and the protection of the investor’s interests.
(b) In addition to the other regulations provided in this chapter, the Secretary shall adopt regulations to govern what is related to §§ 1250, 1251, 1252, 1253(c) and (d), 1254, 1255, 1256, and 1258 of this title.
History —Oct. 6, 1987, No. 3, p. 840, § 19, renumbered as § 20 and amended on July 11, 1996, No. 70, § 19[bis]
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1260 - Interrelation with other laws

The provisions of this chapter shall not be used together with other laws that provide incentives in specific economic sectors through the granting of tax credits similar to the ones in §§ 1254 and 1256 of this title, if the combination of both acts is used evade applicable limitations under any of said laws with regard to the business, project, or venture activity, or that result in the granting of combined tax credits under both acts with regard to the business, project or venture activity that exceed the tax credits to which they would be entitled to under any of them, individually. However, none of the provisions established herein shall prevent the use of this chapter together with other laws that grant other tax benefits, such as the Incentives Act, §§ 10038 et seq. of Title 13, or §§ 8630—8658 of Title 13.
History —Oct. 6, 1987, No. 3, p. 840, added as § 22 on July 11, 1996, No. 70, § 21.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 81 - Investment Capital Fund (§§ 1241 — 1260a) › § 1260a - Licenses issued under this chapter

The licenses issued prior to the approval of this act under §§ 1241 et seq. of this title, up to the date immediately prior to the date of approval of this act, shall continue in effect during the remainder of their term, and the provisions of said sections, mentioned above, shall continue to be applicable with regard to the funds created thereunder. Nevertheless, said funds shall have the option of requesting the conversion of said licenses under this chapter. The Commissioner shall establish through regulations the procedure, terms and conditions for said conversion.
History —Oct. 6, 1987, No. 3, p. 840, added as § 23 on July 11, 1996, No. 70, § 22.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82 - Investment of Public Funds (§§ 1261 — 1263) › § 1261 - Guidelines and advisory services on the investment of public funds

The Governor of Puerto Rico, or his authorized agent, is hereby authorized periodically promulgate guidelines and provide advisory services on the investment of public funds to the Government of Puerto Rico and to all the agencies, municipalities, public corporations and other public dependencies or political subdivisions of the Government of Puerto Rico. The guidelines shall take into consideration the financial needs and investment objectives of the Government of Puerto Rico and of all the agencies, municipalities, public corporations and other public dependencies or political subdivisions of the Government of Puerto Rico, and shall designate investments to supply the same. The investments to be included in the guidelines shall be those that a judicious investor deems appropriate for the investment of public funds.
The Governor may delegate this function on the Government Development Bank for Puerto Rico, as the agent of the Government of Puerto Rico.
History —Aug. 3, 1995, No. 113, § 1, eff. 30 days after Aug. 5, 1995.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82 - Investment of Public Funds (§§ 1261 — 1263) › § 1262 - Investments limited to those allowed in the guidelines

The public funds of the Government of Puerto Rico and of all the agencies, municipalities, public corporations and other public dependencies or political subdivisions of the Government of Puerto Rico may only be invested in the investments, securities or transactions allowed in the guidelines promulgated by the Governor or his authorized agent pursuant to this chapter. Nevertheless, the provisions of this chapter shall not diminish, nor be construed so as to affect the obligations contracted through contracts, agreements, trust deeds or any other sources of obligations, prior to the effective date of this act, by the Government of Puerto Rico or any of its agencies, municipalities, public corporations or public dependencies or political subdivisions of the Government of Puerto Rico. The contractual obligations established prior to the effectiveness of this chapter shall be ruled by the terms stipulated in the corresponding agreement between the parties.
History —Aug. 3, 1995, No. 113, § 2, eff. 30 days after Aug. 3, 1995.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82 - Investment of Public Funds (§§ 1261 — 1263) › § 1263 - Promulgation of guidelines; exemption

The promulgation of guidelines pursuant to this chapter by the Governor of Puerto Rico, or his/her authorized agent, shall be exempted from the application of the provisions of §§ 2101 et seq. of Title 3, (“Uniform Administrative Procedures Act”).
History —Aug. 3, 1995, No. 113, § 4, eff. 30 days after Aug. 3, 1995.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1281 - Creation

The Secretary of the Treasury as trustor and the Government Development Bank for Puerto Rico as trustee, are hereby authorized to create one or more trusts for the investment of the public funds of the Government of Puerto Rico and of all the agencies, municipalities, public corporations and other public instrumentalities and political subdivisions of the Government of Puerto Rico.
History —Aug. 11, 1995, No. 176, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1282 - Statement of public policy

It is hereby resolved and declared, to be the public policy of the Government of Puerto Rico, that the purposes for which the creation of public funds investment trusts is hereby authorized, are public purposes for the benefit of the People of Puerto Rico, and that the exercise of the powers conferred under this chapter constitute compliance with essential government functions.
It is further provided that it is of public interest the creation of uniform investments policies for the government entities that constitute the framework which allows the development of investment vehicles which respond to their specific and particular needs, so that the efficiency and profitability of the investment of public funds is increased.
Said investment policy shall highlight, as its primary objective, the preservation of the funds invested, competitive market yields, high levels of liquidity and a greater efficiency in the administration of funds.
History —Aug. 11, 1995, No. 176, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1283 - Faculties and powers

The Government Development Bank for Puerto Rico, in its capacity as trustee of each one of the trusts created pursuant to this chapter, shall have the following powers and faculties:
(1) All those powers and faculties that are expressly conferred to the trustee in the document through which each trust is constituted, subject to §§ 2541—2581, inclusive, of Title 31.
(2) To sue and be sued as trustee and in representation of each trust.
History —Aug. 11, 1995, No. 176, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1284 - Investment objectives

Any trust created pursuant to this chapter may accommodate short, medium and long-term investment objectives or any other combination of these objectives, which shall be established by the Government Development Bank for Puerto Rico as trustee of each trust. Every trust shall invest its assets only in those investments that are prudent for the investment of public funds based on the investment objectives established by the Government Development Bank for Puerto Rico for each trust.
History —Aug. 11, 1995, No. 176, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1285 - Examination

Every trust created pursuant to this chapter shall be subject to an annual examination and audit by certified public accountants of national repute selected by the Government Development Bank for Puerto Rico, as trustee.
History —Aug. 11, 1995, No. 176, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1286 - Public instrumentality

Any trust for the investment of public funds created pursuant to this chapter shall be an instrumentality of the Government of Puerto Rico.
History —Aug. 11, 1995, No. 176, § 6.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1287 - Tax exemption

(1) Any public funds investment trust created by virtue of this chapter shall be exempted from the payment of any type of taxes, license fees, charges or duties levied by the Government of Puerto Rico or its municipalities on properties, whether real or personal, owned as part of the activities of said trust and on the income obtained from any of the enterprises or activities of said trust.
The beneficiaries of each one of these trusts shall be the agencies, municipalities, public corporations and instrumentalities or political subdivisions of the Government of Puerto Rico that from time to time have funds invested in the respective trusts.
(2) Any public funds investment trust created pursuant to this chapter, shall also be exempted from the payment of any type of fees, stamps, internal revenue stamps, duties, taxes or imposts of any nature whatsoever required by law for the handling of judicial processes, the production of certificates in any office or dependency of the Government of Puerto Rico and the issuing of public documents and their registration in any public registry of the Government of Puerto Rico.
History —Aug. 11, 1995, No. 176, § 7.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1288 - Additional exemptions

Any public funds investment fund created by virtue of this chapter, and any securities, instruments, certificates, stocks, shares and other evidence of participation in investments issued by said trust, shall be exempted from the application of the provisions of §§ 851 et seq. of Title 10, known as the “Uniform Securities Act of Puerto Rico” and of §§ 661 et seq. of Title 10, known as the “Investment Companies of Puerto Rico Act”.
History —Aug. 11, 1995, No. 176, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 82A - Trusts for the Investment Needs of the Government of Puerto Rico (§§ 1281 — 1289) › § 1289 - Legal investment

The Government of Puerto Rico and all the agencies, municipalities, public corporations and other public instrumentalities or political subdivisions of the Government of Puerto Rico, empowered by law to invest their funds, are hereby authorized to invest in any securities, instruments, certificates, stocks, shares and other evidence of participation in investments issued by any public funds investment trust created pursuant to this chapter, regardless of the existence of any restrictions on investments contained in their organic acts and other laws.
The investment by government entities in any of the trusts created pursuant to this chapter shall be voluntary.
History —Aug. 11, 1995, No. 176, § 9.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334 - Public policy

It is the public policy of the Commonwealth of Puerto Rico to watch over the integrity, solvency and financial strength of the cooperative movement of Puerto Rico. An essential part of said public policy and of the essential responsibility of the state is to conduct a fair, equitable and effective supervision and monitoring of the cooperatives, according to the following principles:
(a) The complete function of monitoring and total supervision of cooperative savings and credit unions and their operations, products and services shall be exclusively consolidated and unified in the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico.
(b) The drafting of public policy and regulations of the cooperative movement by the Corporation shall include the representation of insured cooperatives, as subsequently provided in this chapter.
(c) Those matters germane to the governing processes of the cooperatives whose affairs do not present or imply relative risks to the economic, financial, juridical or moral integrity of said institutions or of its members shall be subject to self-regulation under those rules that are adopted by the Corporation with the approval of its board, as subsequently provided in this chapter.
—Aug. 17, 2001, No. 114, § 2.
History
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334d - Board of Directors—Meetings and quorum

The Board shall meet in regular sessions at least every three (3) months, and may hold special meetings deemed necessary to attend to the affairs of the Corporation. Five (5) members of the Board shall constitute a quorum and all agreements shall be made by a majority of the members who constitute the quorum, except in regard to the adoption of regulations, which shall be governed by the provisions of subsection (a) of § 1334e of this title.
History —Aug. 17, 2001, No. 114, § 6.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334f - Confidentiality of affairs and immunity

All members of the Board and the Executive President shall be subject to the provisions of §§ 1801 et seq. of Title 3, known as the “Ethics in Government Act of the Commonwealth of Puerto Rico”. In addition to the foregoing, Cooperative Movement representatives shall refrain from discussing, analyzing, considering, evaluating or otherwise participating in matters that pertain to the institutions in which they work as executive officials or members of directing bodies.
No member of the Board or the Executive President shall disclose or use information or documents acquired in the course of the discharge of their functions for purposes extrinsic to such discharge. All members of the Board and the Executive President shall maintain the confidentiality of matters relative to their functions, unless there is a petition that requires the disclosure of an issue and such disclosure is allowed by the competent authority. None of these ethical or fiduciary obligations shall bar Cooperative Movement representatives from freely discussing with cooperatives and their leaders, any matters of public policy, regulations, and development of the Cooperative Movement not related to specific situations, cases or circumstances of any particular cooperatives or persons or to the internal operations of the Corporation.
Neither the Board of Directors of the Corporation nor its directors or the Executive President individually, shall incur financial liability for any action taken in the performance of their duties and powers under this chapter, provided they do not act intentionally, illegally and knowing that they may cause damage, or for their own benefit or that of a third party.
History —Aug. 17, 2001, No. 114, § 8; Aug. 10, 2008, No. 247, § 22, eff. Feb. 1, 2009.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334h - Mandatory coverage

Every cooperative savings and credit union that is organized and operating as such on the effective date of this act, may continue to avail itself of the shares and deposits insurance of the Corporation.
However, those cooperative savings and credit unions that on the effective date of this act have availed themselves of the shares and deposits insurance of the National Credit Union Administration shall have the option of continuing under the insurance of said entity or to avail themselves of the shares and deposit insurance provided in this chapter, subject in this last case, to their compliance with the requirements established by the Corporation.
Every cooperative credit and savings union or federation that is organized after the effective date of this act, is bound to avail itself of the shares and deposit insurance prior to initiating operations, according to the requirements established by regulations.
History —Aug. 17, 2001, No. 114, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334j - Shares and deposits insurance limit

The shares and deposits insurance of the Corporation shall provide to guarantee the shares and deposits of the members and depositaries of the cooperatives against the risk of loss for insolvency, up to the maximum limit of one hundred thousand dollars ($100,000.00). Provided, however, That with regard to the Cooperative Bank of Puerto Rico, the insurance of the Corporation may only guarantee its deposits from the risk of financial insolvency. In view of the special nature of the Cooperative Bank, the Board of the Corporation shall adopt, through regulations, the norms that shall govern the coverage applicable to the deposits of the Bank as well as the computation of the corresponding premium, thus avoiding the multiple imposition of premiums on deposits that originate from the insured cooperatives.
After the corresponding actuarial studies, and with the prior approval of two thirds ( 2 / 3 ) of the Board of Directors, the Corporation may raise the maximum insurance limit taking into account the following factors:
(1) Financial capacity of the Corporation to answer for the increased coverage.
(2) Financial situation of the insured cooperatives.
(3) Insurance limits in effect under the federal deposit and/or stock insurance programs.
In addition to the basic coverage matched to the federal programs, the Corporation may decree supplementary, additional or special coverage for certain types of deposits and/or stock, for which supplementary premiums shall be defined, if necessary.
Every increase in coverage, whether it be general, supplementary, additional or special, must be based on and supported by actuarial and financial studies that demonstrate the capacity of the Corporation to assume the extended coverage. In every case, in which an increase in the maximum combined amount of insurable shares and deposits is decreed, the Corporation shall establish the procedures in order to make the pertinent adjustments in the insurance premiums that are needed.
History —Aug. 17, 2001, No. 114, § 12.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334k - Financial statements

Every insured cooperative shall submit to the Corporation, on June 30 of each year, a financial statement that shows its financial situation and shall indicate the balance of the shares and deposits accounts of the members pursuant to the norms established by the Corporation. Those balances must coincide with those in the report that is required by this chapter, in order to determine the premium to be paid by the Cooperative.
Pursuant to the provisions of § 1334e of this title, the Corporation shall establish through regulations, the dates and frequency these financial statements are to be rendered, the forms to be used, the persons bound to certify them, the information to be included or enclosed and any other convenient data or information in order to comply with the purposes of this chapter.
The Corporation may require any insured cooperative to render other financial reports or of another type to be aware of its situation and to determine the risk of financial loss that said cooperative could represent to the shares and deposits insurance. The Corporation may also require them to publish their annual financial statements in the form deemed most convenient to the public interest.
History —Aug. 17, 2001, No. 114, § 13.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334l - Insurance premium—Determination of amount

The shares and deposits insurance premium to be paid by each insured cooperative shall be computed on the basis of its total shares and deposits as of June 30 of the year preceding that in which the premium shall be paid. At the beginning of the year to which the premium corresponds and, at least fifteen (15) days prior to the deadline for the payment of the premium established in this chapter, each insured cooperative shall submit a certified statement to the Corporation of the number of shares and deposits of its members and depositaries as of the abovementioned date so that the Corporation can determine the total amount of the insurance premium to be paid. For the purposes of this section, in order to comply with the certification requirement, it shall suffice that said statement be signed by the Chairperson of the Board of Directors of the insured cooperative or by any other member thereof duly authorized by the Board, who can attest to the fact that the numbers set forth in the report are true, correct and have been determined pursuant to this chapter and the applicable regulations. The insured cooperatives that submit the certified statement required in this chapter to the Corporation within the term established above shall not have to file the shares and deposits statement described above.
The cooperatives that are admitted for the first time to the shares and deposits insurance shall make an estimate of the shares and deposits for the months corresponding to their first year of operations, and pay a provisional premium based on said estimate, which shall be readjusted taking the real figures as of June 30 of the year in which it started operations as a base.
In any year in which an increase in the maximum limit of the shares and deposits insurance takes effect as provided in this chapter, the Corporation shall charge an additional provisional premium for the increase in shares and deposits that can be foreseen as a result of said increase. At the end of said year, the corresponding adjustments shall be made on said provisional premium, taking the real figures of the increase in shares and deposits for the year, as a base that can be attributed to the increase in the maximum limit of the insurance.
History —Aug. 17, 2001, No. 114, § 14.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334m - Insurance premium—Date of payment

The shares and deposits insurance premiums shall become due on the 1st of July of each year, and shall be paid no later than the last day of said month. The insured cooperatives that on the expiration of this last date do not have the certified figures available of the total of insured shares and deposits shall pay a provisional premium, which amount shall be determined based on the balance of shares and deposits of the last quarterly report submitted or of any other report available to the Corporation. This provisional premium shall be readjusted as soon as the insured cooperative obtains and submits its final figures, and at that time, any pertinent adjustments in the payment of premiums shall also be made.
The Corporation may impose the payment of surcharges, interest and penalties on those insured cooperatives that do not pay the premiums within the term established herein. It may initiate the administrative or judicial actions it deems necessary and convenient, to require any insured cooperative to pay any amount due and unpaid, for the shares and deposits insurance premium.
History —Aug. 17, 2001, No. 114, § 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334n - Failure to render certified statements

Every insured cooperative shall be subject to lose all rights and benefits guaranteed by this chapter, to have the Corporation revoke the authorization to do business as a cooperative entity and order its liquidation if:
(a) It refuses to file the certified statements on the total of shares and deposits that are required in this chapter;
(b) it refuses to pay the insurance premiums, the capital stock or special premiums required by this chapter and its regulations, or
(c) it refuses to correct any error or omission in said certified statements or refuses to pay the amounts owed for annual or special premiums, surcharges and interests, or refuses to deposit the capital contribution in the Corporation as required in this chapter, or to pay any administrative fine that has been imposed on it.
When an insured cooperative incurs any of the deficiencies established above, the Corporation shall require it to correct the same within thirty (30) days following the date of such requirement. If it is not corrected in said term, the Corporation shall notify the Board of Directors of the Cooperative of the deficiency incurred, and admonishing it that it shall impose the sanctions established in this chapter on the insured cooperative.
If after this procedure, which may be extended for a term that shall not exceed sixty (60) days, the insured cooperative persists in any of the deficiencies set forth in subsections (a), (b), and (c) of this section, the Corporation may impose the sanctions established in the first paragraph of this section. This decision shall be immediately notified to the Board of Directors of the insured cooperative, stating the facts and grounds on which they are based.
The Corporation has the responsibility to adopt and execute the measures that are necessary to safeguard the guarantees that this chapter provides for the members and depositors of insured cooperatives in any case in which the authorization to do business as a cooperative entity is revoked, or in the cases that the liquidation of the insured cooperative will proceed.
History —Aug. 17, 2001, No. 114, § 16.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334o - Obligation to keep records

Every insured cooperative shall keep its records in such a way that the verification of the correction of the financial statements, audited statements, deposit and stock, loans, insurance premiums and any other statistical and financial data that the Corporation deems necessary for the purposes of this chapter can be expedited. The Corporation may require the insured cooperatives to maintain the systems and procedures and use the uniform forms and documents that are provided for the conservation of said records or documents.
The Corporation may authorize the insured cooperatives to dispose of said records after five (5) years of their having been prepared, filed or having made the report, statement, or payment of any capital sum, regular or special premium, or any adjustment to said payments or charges. Notwithstanding the above, they must be preserved until the final adjudication of any controversy when there are differences between an insured cooperative and the Corporation on the amount of any deposit or adjustment to the same, on any charge for premiums, or on the financial situation of the insured cooperative. Said records shall also be kept when the financial situation of the insured cooperative may require the Corporation to pay any sum under the shares and deposits insurance.
History —Aug. 17, 2001, No. 114, § 17.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334q - Suspension and removal

(a) When there are probable grounds to believe that a member of the Board of Directors, committee member, chief executive officer or other employee of an insured cooperative has committed a violation or is violating any law with respect to said entity, or has pursued inadequate practices in the management of the business, the Corporation shall file charges against said member of the Board of Directors, committee member, chief executive officer, or other employee, and shall require him/her to appear before the representative designated by the Corporation, within the term and pursuant to the procedure established through regulations, to show cause for which he/she should not be removed. In any case involving the filing of charges against the chief executive officer, an order shall be issued against the Board of Directors to show cause for which it should not be determined that it has failed to comply with its supervisory function of management.
(b) A copy of the notice of charges shall be remitted by certified mail with acknowledgment of receipt to each member of the Board of Directors of the insured cooperative involved.
(c) If the Corporation should determine, after granting a reasonable opportunity to the person charged to be heard and to present evidence to support his/her cause, that he/she has violated a law with respect to said cooperative or has engaged in inadequate practices in the management of the business of said institution, it may direct that said person be dismissed from office.
(d) The Corporation shall remit a copy of the dismissal order to the person thus affected and another copy to the entity of which he/she is a member of the Board of Directors, a committee member, chief executive officer or other employee, to be submitted immediately to the Board of Directors of said entity. In such case, said member of the Board of Directors, committee member, chief executive officer or other employee, shall cease in office or employment immediately upon receipt of the notice of the order of the Corporation.
(e) The order and the findings of fact and conclusions of law on which said order is based shall not be made public nor disclosed to anyone with the exception of the person charged and the directors of the Cooperative concerned, except when by determination of two thirds (2 / 3) of the Board of Directors of the Corporation, it is determined that said disclosure would be convenient to the best interests of the cooperative movement, or in the context of a judicial review requested as provided in this chapter.
(f) No member of the Board of Directors, committee member, chief executive officer or other employee who has been removed from office as provided in this section, shall in any way, subsequently participate in the administration or direction of any cooperative without prior authorization of the Corporation.
History —Aug. 17, 2001, No. 114, § 19.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334s - Contribution to capital stock

Each insured cooperative shall maintain in the Corporation, as a contribution of capital stock and according to its determination, a sum equal to one percent (1%) of the total of the shares and deposits that it holds as of June 30 of each year of operations, as stated in the certified shares and deposits statement or in the certified financial statements required by this chapter. The Corporation shall establish the norms and procedures to annually determine the amount of the deposit of the contribution of capital that each insured cooperative should maintain, according to the variations in shares and deposits. Likewise, it shall establish the rules and procedures to determine the annual increment that should be required in the amount of said contribution of capital as a result of an increase in insured shares and deposits.
When the amount of unencumbered uncommitted reserves, for the payment of losses and the total capital of the Corporation, exceeds two percent (2%) of the total insured shares and deposits, the Corporation shall use said excess for the payment of interest on capital. Said interest shall be determined on the basis of an average yield rate of the total assets of the Corporation for the twelve month period preceding the date that the payment is made, reduced by one percent (1%).
When an insured cooperative undergoes a reduction in its insured shares and deposits, the Corporation may reduce the amount of the capital contribution that it should maintain in the Corporation for the corresponding year, as established by the Corporation by regulations. In those cases the capital shall not be adjusted nor returned until the Corporation determines that said reduction in shares and deposits is not due to a potential situation of insolvency. When this is the case, the Corporation shall be prevented from making the return.
History —Aug. 17, 2001, No. 114, § 21.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334t - Return of fees; payment of interest

In the cases of the liquidation or voluntary dissolution of an insured cooperative that does not entail losses for the Corporation, the latter shall reimburse to the former, the equivalent of the percentage of participating in the contributed capital of the total of the existing capital shares. When said liquidation or dissolution entails losses for the Corporation, the latter shall treat it as if it were a case of insolvency, choosing the course of action that is less costly and shall retain all the capital held by the insured cooperative in the Corporation until the case is solved in a final and binding manner.
The Board may authorize that dividends on the contribution of capital be credited or paid to the insured cooperative, provided:
(a) The Corporation does not have outstanding debts with the Government of the Commonwealth of Puerto Rico, its agencies, instrumentalities, public corporations or political subdivisions, nor with any other creditor that has granted it loans for the payment of losses;
(b) the payment of said dividends does not have the effect of reducing liens free assets of the Corporation to an amount less than one and-a-half percent (1 1 / 2 %) of the total capital in shares and deposits in all insured cooperatives, as determined in the annual certified statement of the Corporation for the year preceding the year in which the payment of dividends would be disbursed, and
(c) there are no special circumstances or actuarial opinions that justify that such dividends not be paid.
In the years in which the Board does not authorize the accreditation or payment of dividends, it shall include the reasons therefor in its annual report.
In the case of insured cooperatives that have problems of financial solvency, the dividends shall be accredited to their capital account in the Corporation, unless the latter determines that its payment in cash could improve the financial situation or the liquidity of said cooperatives.
History —Aug. 17, 2001, No. 114, § 22.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334u - Tariff rates

After conducting the corresponding actuarial studies, the Corporation shall determine the tariffs to be used as basis to compute the insurance premiums to be paid by the insured cooperatives. With the approval of the Board, the corporation may establish uniform or variable tariff rates according to the exposure to risks of each insured cooperative, by factors such as credit, types of investments, delinquency, liquidity, maximum limits of insured shares and deposits or any others that could affect the solvency of the insured cooperatives. The tariff rates shall be used to compute the annual premium, as provided by this chapter. The tariff rates may vary from 0.05 percent to 0.2 percent of the total capital and insured deposits. The Board may determine higher tariff rates, provided there are actuarial studies to support them.
History —Aug. 17, 2001, No. 114, § 23.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334v - Annual premium

The annual premium shall be calculated by applying the tariff rate in effect to the capital in shares and deposits of the insured cooperative as of the 30th of June of each year. Every insured cooperative shall pay its corresponding annual premium in advance as provided in this chapter. In the case of cooperatives that avail themselves of the insurance after June 30 of each year, the premium shall be determined on the basis of the number of months remaining to complete their first year of operations and shall be paid in advance prior to beginning the same.
History —Aug. 17, 2001, No. 114, § 24.