2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 37 - Governmental Supplies and Services (§§ 881-897 — 926f) › § 902 - Transfer of claims against Government; forms

All transfers and assignments made of any claim upon or against the Commonwealth of Puerto Rico, or of any parts or share thereof, or interest therein, whether absolute or conditional, and whatever may be the consideration therefor, and all powers of attorneys, orders, or other authorities for receiving payment of any such claim, or any part or share thereof, shall be absolutely null and void, unless they are freely made and executed in the presence of at least two (2) attesting witnesses, after the allowance of such claim by the Secretary of the Treasury, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. Such transfers, assignments and powers of attorney must recite the warrant for payment and the number and date of the draft of the Secretary of the Treasury issued thereon, and must be acknowledged by the person making them before a notary public or some officer having authority to take acknowledgments of deeds, and shall be certified by such officer; and it must appear by the certificate that the officer, at the time of the acknowledgment, read and fully explained the transfer, assignment or power of attorney to the person acknowledging the same. The Secretary of the Treasury shall furnish the necessary funds for such powers of attorney to persons requiring the same.
The provisions of the first paragraph of this section shall not apply to those cases where the amounts due or to fall due, to be paid by the Commonwealth of Puerto Rico or any of its agencies, departments, or instrumentalities, under a contract providing for payment adding up to the sum of one thousand dollars ($1,000) or more, are assigned or transferred to a bank, trust company, or other financial institution; Provided, That in the case of farmers, cattlemen and poultrymen, they may assign or transfer payments adding up to the sum of one hundred dollars ($100) or more to every natural or artificial person to whom crop credit has been granted; and Provided, That:
(1) In the case of any perfected contract prior to the date of effectiveness of this act, no claim or right may be assigned or transferred without the consent of the head of the corresponding department or agency and/or the Secretary of the Treasury;
(2) in the case of any perfected contract, after the effectiveness of this act, no right or claim may be assigned if it arises from a contract which prohibits such assignment or transfer;
(3) unless otherwise expressly permitted by such contract, any assignment or transfer shall refer to all payable sums under such contract which still are due. No assignment or transfer shall be made to more than one of the entities herein designated, nor shall it be the object of subsequent assignments or transfers, except that any assignment or transfer may be made to an entity as agent or fiduciary of two (2) or more entities participating in such financing;
(4) in the case of any assignment or transfer as referred to, the concessionaire shall notify in writing of the assignment or transfer in question, remitting a true copy of the instrument of assignment or transfer to:
(a) The contracting officer or chief of the department or agency;
(b) the insurer or insurers under bond or bonds, if any should be granted in connection with such contract, and
(c) the Secretary of the Treasury or disbursing officer, if any, designated as such under contract.
In any case in which the concessionaire has received any sum as a result of having assigned or transferred the sums which are due or that will become due, to be paid under a contract, in accordance with the provisions of this section, any responsibility on the part of the assignor with the Commonwealth of Puerto Rico or with any of its departments, agencies or instrumentalities whether such responsibility arises from said contract or independently from same, shall not create or impose any obligation on the concessionaire of refunding or reimbursing to the Commonwealth of Puerto Rico any amount received under such assignment. Provided, however, That the Commonwealth of Puerto Rico, or the municipalities, in accordance with § 124 of the Political Code, may retain, notwithstanding the assignment or transfer of any of the payments to be made, the sum that may be necessary to cover any debt that the assignor may have with any of them at the time of the assignment or that he has contracted subsequent to same.
Except as herein provided, nothing in this section shall be construed as affecting or impairing the rights or obligations already acquired.
History —Political Code, 1902, § 201; May 1, 1967, No. 16, p. 193, § 1; June 17, 1970, No. 7, p. 395, § 1.