reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3039 - Other exemptions

(a) Taxation of personal property. — Investments in proprietary interests in funds, or in stock of trusts created by the Bank pursuant to § 3032 of this title, shall be exempted from personal property taxes in Puerto Rico and shall not have to be reported on the real property tax returns that the investor is bound to file, if any. Capital investment funds and trusts created by the Bank pursuant to § 3032 of this title, shall be exempted from personal property taxes in Puerto Rico, and said entities shall be exempted from the requirement to file personal property tax returns in Puerto Rico.
(b) Municipal licenses. — Income received by capital investment funds and the trusts created by the Bank pursuant to § 3032 of this title, as well as the distributions made by said entities to their investors, shall not be deemed as “gross income” nor shall be included in the definition of “volume of business” for the purposes of §§ 651 et seq. of Title 21, known as the “Municipal Licenses Act”.
(c) Estate and donation taxes. — Proprietary interests in a capital investment fund or a trust created by the Bank pursuant to § 3032 of this title, shall be deemed as an investment of property located in Puerto Rico for the purposes of Sections 52 and 206 of Act No. 167 of June 30, 1968, as amended, and of § 9152 of Title 13.
History —Jan. 28, 2000, No. 46, § 20.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3040 - Administrators of the fund

(a) Administration of more than one (1) fund. — The Administrators of a fund may administer more than one (1) fund simultaneously.
(b) Notification. — The Administrator of a fund shall notify the Secretary and the Bank, in writing, of the authorization and issuance of private proprietary interests. The Administrator of the fund shall likewise notify the Secretary of the profits generated by a fund that are attributable to the investment of unrestricted use capital during a specific calendar year. Said notice shall be made thirty (30) days after the corresponding reporting period has ended.
History —Jan. 28, 2000, No. 46, § 21.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3041 - Due diligence of the administrator of the fund

(a) The Administrator of a fund shall act in a fiduciary capacity for the good of the fund and its beneficiaries. The Administrator of the fund shall also be responsible for maximizing profits and minimizing any investment loss, without considering the tax credits available. For such reason, he/she shall take the necessary measures, diligently and honestly, and shall not violate nor allow the violation of the laws and regulations in effect, nor assume positions or make decisions that contravene the best interest of the fund or its investors.
(b) It shall be deemed that the Administrator of the fund has exercised due diligence if he/she can show through proper documentation that prior to making the investment he/she conducted a reasonable investigation which, in view of all the facts and circumstances, provided reasonable grounds to believe that upon disbursing the funds they would be used for a business venture. The standard to determine what constitutes a reasonable investigation and reasonable grounds would be that required by a prudent man in a position as trustee.
History —Jan. 28, 2000, No. 46, § 22.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3042 - Regulations

(a) The Commissioner together with the Bank shall adopt regulations, in addition to the other regulations provided in this chapter, to govern:
(1) The maximum percent of the moneys of a capital investment fund that can be used and attributed to the administrative expenses thereof, to professional and consulting services, and others related to their investments. However, the limitations established by the Commissioner together with the Bank shall not be applicable to technical assistance expenses for small businesses defrayed with money obtained from the sale of tax credits.
(2) The prospectus, handbooks, communications, circular letters, advertisements, or any sales literature or publicity material addressed, or that is proposed to be distributed to potential investors, including clients or prospective clients of an investment advisor, to closely oversee and supervise all types of promotion and publicity developed by each fund, with the purpose of protecting the participating investors at all times.
(3) The commissions and fees for the sales that will be charged for the purchase and sale of proprietary interests of a fund.
(4) Fees charged for the administration of a fund.
(5) Remuneration of the Administrator of the fund.
(6) Factors to be considered to determine that the Administrator of the fund has complied with his due diligence obligations.
(7) Any other rules and regulations that are needed to ensure compliance of this chapter and the protection of the interests of the investors.
(b) The Secretary shall adopt regulations, in addition to the other regulations provided in this chapter, to govern the provisions of §§ 3030, 3031, 3032, 3033(c) and (d), 3034, 3035 and 3039(c) of this title.
History —Jan. 28, 2000, No. 46, § 23.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3043 - Supplemental acts

The provisions of §§ 851 et seq. of Title 10, known as the “Uniform Securities Act”, concerning civil and criminal liability, shall be supplemental to this chapter to the extent that they do not conflict with it.
History —Jan. 28, 2000, No. 46, § 24.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3044 - Interrelation with other acts

(a) Granting of combined tax credits. — The provisions of this chapter shall not be used together with other laws that provide incentives for private economic sectors through the granting of tax credits, if the combination of both laws is used to elude limitations that apply under any of said laws with respect to the business or project, or results in the granting of combined tax credits under both laws with respect to a business or project, that exceed the tax credits to which they would be entitled under any of them, individually. Therefore, the credits granted under other laws shall be reduced proportionally by the tax credits that the fund has available at the time of making the investment under these laws. However, nothing that is provided herein shall prevent that this chapter be used together with other laws that grant other tax benefits.
(b) Limitation with regard to restricted use capital. — The restricted use capital that the fund invests in an investment that qualifies as an eligible investment under §§ 6001 et seq. of Title 23, §§ 10401 et seq. of Title 13, §§ 1301 et seq. of Title 12, or any other act that grants tax credits shall be limited to a specific fraction of said capital for the purposes of the tax credits granted under the above mentioned laws. The numerator of this fraction shall consist of one hundred percent (100%) of the capital derived from the sale of private proprietary interests and the denominator shall be the total of the restricted use capital held by the fund at the time of making the investment. The fraction shall be multiplied by the amount of restricted use capital invested by the fund, which, in turn, qualifies as an eligible investment under the statutes mentioned in this subsection. The product of this multiplication represents the total restricted use capital that shall be taken into consideration in the granting of tax credits under the statutes mentioned in this subsection, taking into consideration the limitations imposed in subsection (a) of this section.
History —Jan. 28, 2000, No. 46, § 25.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3045 - Licenses issued

Applications presented prior to the approval of this act shall be considered and approved under the provisions of §§ 1241 et seq. of this title, known as the “Capital Investment Funds Act”. Licenses issued under the provisions of said §§ 1241 et seq., shall remain in force during the remainder of their term, but shall not be renewed, nor shall applications presented after the date of approval of this act under said §§ 1241 et seq., be considered. The provisions of §§ 1241 et seq. of this title, shall continue to be applied with respect to the capital generated and authorized under the same. The Commissioner shall not place additional levels of capital in said funds under §§ 1241 et seq. of this title. Nevertheless, said funds shall have the option of requesting the conversion of said licenses under this chapter. The Commissioner shall establish the procedure, terms and conditions for said conversion by regulations.
History —Jan. 28, 2000, No. 46, § 26.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3046 - Non-applicability of the Investment Companies Act to the fund

The provisions of §§ 661 et seq. of Title 10, known as the “Investment Companies Act”, nor the regulations promulgated thereunder, shall be applied to the funds authorized pursuant to the provisions of this chapter.
History —Jan. 28, 2000, No. 46, § 28.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 142 - Capital Investment Funds Act of 1999 (§§ 3021 — 3047) › § 3047 - Faculties and powers of the Commissioner

Nothing that is provided in this chapter shall affect the faculties and powers that the Commissioner has under §§ 2001 et seq. of this title, known as the “Office of the Commissioner of Financial Institutions Act”, or any other act that succeeds it.
History —Jan. 28, 2000, No. 46, § 29.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter I - General Provisions and Definitions (§§ 3051 — 3051a) › § 3051a - Applicability

(a) This chapter shall apply to any person partially or totally engaged in mortgage lending, mortgage brokerage, or mortgage loan origination activities, as defined in this chapter, for all purposes, which include financing the acquisition of residential real estate or refinancing residential mortgage loans.
(b) Any person who, as of the date of approval of this act, is operating a mortgage lending business to finance the acquisition of real estate that is authorized under §§ 613–613h of Title 5, or offers real estate brokerage services under §§ 1071 et seq. of this title, known as the “Act to Regulate the Financial Intermediation Business”, may continue such business, provided that it meets all the requirements imposed under this act within ninety (90) days after the approval thereof.
History —Dec. 30, 2010, No. 247, § 1.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052 - License requirement

No person or individual, except for those excluded in §§ 3053, 3054, and 3055 of this title, shall engage in the business of mortgage lending, mortgage brokerage, or mortgage loan origination in Puerto Rico without first obtaining a license issued under this chapter by the Commissioner as provided below.
History —Dec. 30, 2010, No. 247, § 2.1, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052a - License application

(a) Any person interested in obtaining a license to engage in the business of mortgage lending, mortgage brokerage, or mortgage loan origination shall file an application containing all the required information with the Office of the Commissioner of Financial Institutions using the forms and system provided by the nationwide mortgage licensing system and registry.
(b) The Commissioner may waive any application requirement and allow the furnishing of alternate information in lieu of the information generally required in the application if he/she determines that such action is consistent with the purposes of this chapter.
(c) The license application shall be filed together with the payment of any license, investigation, and application processing fee or fees fixed by the nationwide mortgage licensing system and registry, which shall be payable through such entity, at the time of filing such application.
(d) Any application for a license to engage in the business of mortgage lending, mortgage brokerage, or mortgage loan origination filed with the Office of the Commissioner of Financial Institutions shall be subject to any investigation that the Commissioner deems appropriate and necessary to determine whether the applicant, or the partners, stockholders, directors, and executive officers, in the case of a juridical person, meet the requirements established in this chapter.
(e) The Commissioner may extend the period provided by law or regulations to consider a license application.
(f) Any incomplete application shall be treated as not filed.
History —Dec. 30, 2010, No. 247, § 2.2, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052b - Surety bond

(a) Every applicant for a license to engage in the business of mortgage lending, mortgage brokerage, or mortgage loan origination shall post a bond that ensures faithful compliance with the provisions of this chapter and the rules or regulations to be adopted thereunder by the Commissioner. Said surety bond shall serve as a guarantee to any person, including the Office of the Commissioner of Financial Institutions, and shall be in the amount provided in §§ 3053c, 3054c, and 3055c of this title, respectively. The surety bond shall be renewed annually.
(b) The surety bond may consist of:
(1) A surety bond issued by an insurance company authorized by the Office of the Insurance Commissioner to do business in Puerto Rico, which bond may be subject to cancellation only through a written notice to the Commissioner not less than thirty (30) days prior to the cancellation thereof;
(2) bonds, notes, or other evidence of indebtedness of the Government of Puerto Rico, its municipalities and public corporations, provided that they shall be accepted at all times at eighty percent (80%) of its market value;
(3) certificates of deposit issued to the name of the Commissioner by banks authorized to do business in Puerto Rico, or
(4) letters of credit issued in the name of the Commissioner by authorized banks.
(c) The securities deposited as surety bonds may be registered, with respect to its principal, in the name of the petitioner and shall include a separate endorsement in the name of the Commissioner of Financial Institutions, wherein the securities endorsed are described. Said assets may not be withdrawn without the express authorization of the Commissioner.
(d) The Commissioner may require a licensee to submit a new surety bond whenever a claim is filed against the surety bond in effect.
History —Dec. 30, 2010, No. 247, § 2.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052c - Return of application or denial of license

(a) After analyzing the filed application, the Commissioner may deny the same for any of the following reasons:
(1) The application was not filed in accordance with the provisions and requirements of this chapter or the regulations that may be promulgated thereunder;
(2) the application lacks the information or documents required for its evaluation;
(3) authorization is requested to engage in a business not authorized in Puerto Rico.
(b) In the event that the Commissioner returns the application, the amount paid on account of investigation and license fees shall be refunded to the applicant.
(c) After analyzing the application to engage in the business of mortgage lending, mortgage loan brokerage, or mortgage loan origination, and conducting the corresponding investigation, the Commissioner may deny a license application if he/she deems that the applicant failed to meet any of the requirements established in this chapter to obtain a license: if he/she discovers that the applicant submitted false, incorrect, or deceitful information in the license application; or if the applicant has been convicted of any crime that involves moral turpitude, including, but not limited to fraud, deceit, forgery, or money laundering, among others.
(d) An applicant who has been denied a license to engage in the business of mortgage lending, mortgage loan brokerage, or mortgage loan origination may request reconsideration to the Commissioner within twenty (20) days following the notice of the denial.
(e) In the event that the Commissioner denies the license, the amount paid on account of investigation fees shall be retained by the Commissioner and the amount paid on account of license fees shall be refunded to the applicant.
History —Dec. 30, 2010, No. 247, § 2.4, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052d - Issuance of license

(a) Upon filing the application and paying the fees, the Commissioner shall conduct the investigations deemed necessary and, if he/she determines that the applicant meets all the requirements and that the application should be approved, the Commissioner shall issue a license to the applicant, which shall represent the authorization to operate in accordance with the provisions of this chapter.
(b) No other license shall be issued unless it is certified that the original license has been lost or destroyed, or if there has been a change of address, in which case the licensee shall return the original license.
(c) Every holder of a license to engage in the business of mortgage lending, mortgage loan brokerage, or mortgage loan origination shall begin its operations within a term not greater than ninety (90) days as of the date in which the Commissioner issued the license. If the licensee is unable to begin operations within the term herein established, he/she shall request an extension to the Commissioner and explain the reasons therefor. The Commissioner shall determine if there is valid justification for granting the extension and shall notify the same to the licensee within fifteen (15) days after the request for the extension. In the event that the Commissioner fails to comply with such term for notification, it shall be understood that an extension has been granted for thirty (30) additional days. In no case shall more than two additional thirty (30)-day extensions be requested.
The license shall become null if operations do not begin within the term established in this subsection or within the term of any extension granted by the Commissioner.
History —Dec. 30, 2010, No. 247, § 2.5, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter II - License Issuance General Provisions (§§ 3052 — 3052f) › § 3052f - Surrender, revocation, cancellation, or suspension of license

(a) Any licensee may surrender his/her license through the nationwide mortgage licensing system and registry, but shall notify his/her decision to the Commissioner at least thirty (30) days before it becomes effective.
(b) The Commissioner may order and conduct an inspection of the business prior to accepting the surrender of the license. If it is determined after the inspection that the licensee committed a violation of law, the Commissioner may revoke the license and impose the corresponding penalty pursuant to the provisions of this chapter.
(c) The Commissioner may call the person who has surrendered the license to a meeting where the latter shall be required to deliver the license and pay any outstanding debts with the Office of the Commissioner of Financial Institutions.
(d) The Commissioner may revoke, cancel, or suspend a license for any violation of this chapter or the rules and regulations that may be promulgated thereunder if it is determined that any fact exists which if it had existed or had been known to exist at the time the license was issued, would have warranted the denial thereof, or if it is discovered that the licensee has submitted false, incorrect, or misleading information.
The Office of the Commissioner of Financial Institutions shall carry out the actions related to the revocation, cancellation, or suspension of licenses through the nationwide mortgage licensing system and registry, pursuant to the powers and faculties conferred thereto by §§ 2001 et seq. of this title, known as the “Financial Institutions Commissioner’s Office Act”, and §§ 2101 et seq. of Title 3, known as the “Commonwealth of Puerto Rico Uniform Administrative Procedures Act”.
(e) No surrender, revocation, cancellation, or suspension of any license shall impair or affect the obligations derived from any valid contract existing between the licensee and other persons.
History —Dec. 30, 2010, No. 247, § 2.7, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053 - Applicability and excluded entities

(a) This subchapter shall apply to every person engaged in the mortgage lending business, as defined in § 3052 of this title.
(b) The following persons shall not be subject to the provisions of this subchapter:
(1) Banks authorized to operate in Puerto Rico that are regulated by a federal banking agency;
(2) federal agencies;
(3) agencies, municipalities, and instrumentalities of the Government of Puerto Rico;
(4) employee retirement systems of the Government of Puerto Rico and its instrumentalities;
(5) insurance companies authorized by the Commissioner of Insurance of the Commonwealth of Puerto Rico to do business in Puerto Rico; and
(6) natural persons who grant or originate residential mortgage loans when the total amount of the loans granted or originated in the previous twelve (12) months does not exceed one hundred thousand dollars ($100,000).
History —Dec. 30, 2010, No. 247, § 3.1, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053a - License requirements

To obtain a license to engage in the mortgage lending business in Puerto Rico under this subchapter, the applicant shall:
(a) Have a capital of at least two hundred fifty thousand dollars ($250,000) when applying for a license, to be determined pursuant to generally accepted accounting principles; provided, however, that as of January 1st, 2012, and subsequently for 2013, 2014, and 2015, the applicant shall have a capital of at least two hundred seventy-five thousand dollars ($275,000); three hundred thousand dollars ($300,000); three hundred twenty-five thousand dollars ($325,000); and three hundred fifty thousand dollars ($350,000), respectively;
(b) hold at least one hundred fifty thousand dollars ($150,000) in liquid assets for the administration of the main office, and at least one hundred thousand dollars ($100,000) in liquid assets for every additional authorized office; as of 2012, it shall be required to have at least two hundred thousand dollars ($200,000) in liquid assets for the administration of the main office, and one hundred twenty- five thousand dollars ($125,000) in liquid assets for every required additional office;
(c) furnish evidence of good standing; moral probity and financial solvency; experience; minimum education requirement, namely, a bachelor’s degree from an accredited university in Puerto Rico, the United States, or a foreign university duly accredited by an institution in Puerto Rico or the United States or, in lieu thereof, ten (10) years of experience in the industry; character and general fitness of the applicant, partners, directors, and executive officers; and no felony convictions involving fraud or a related crime in Puerto Rico or the United States such as to command the confidence and to warrant a determination that the applicant’s business shall operate honestly and efficiently and that it shall be in the best public interest;
(d) meet the minimum surety bond requirement described in § 3053c of this title.
History —Dec. 30, 2010, No. 247, § 3.2, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053b - License application

(a) Every application for a license to engage in the mortgage lending business shall include the annual license fees in the amount of two thousand five hundred dollars ($2,500) per office; in the case of a new license, it shall include an investigation fee in the amount of one thousand two hundred fifty dollars ($1,250), and the application processing fees established by the nationwide mortgage licensing system and registry to be paid to said entity on the date of filing. If the license is issued after June 30 of any year, the annual license fee shall be in the amount of one thousand two hundred fifty dollars ($1,250) for that year.
(b) In the event that the investigation fees exceed the aforementioned amount, the Commissioner shall notify the applicant who shall remit fifty percent (50%) of the estimated value of the remaining investigation to the Office of the Commissioner of Financial Institutions and pay the remainder upon the conclusion of the investigation. It shall be the Commissioner’s responsibility to ensure that the investigations are conducted promptly, taking into consideration the cost that this represents to the Financial Institution.
(c) The license application shall include:
(1) A financial statement showing that capital and liquid asset requirements set forth in subsections (a) and (b) of § 3053a of this title were met;
(2) a list of all mortgage loan originators contracted by the applicant, including any information required by the Commissioner;
(3) a copy of the surety bond required in § 3053c of this title.
History —Dec. 30, 2010, No. 247, § 3.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053c - Surety bond

Every applicant for a license to engage in the mortgage lending business in Puerto Rico shall file a surety bond in the amount of five hundred thousand dollars ($500,000) if the applicant plans to do business in a single office. Every additional office shall entail a ten thousand dollar ($10,000)-increase in the surety bond. However, the Commissioner may require a higher surety bond based on the volume of business of the applicant and his/her financial situation.
History Dec. 30, 2010, No. 247, —Dec. 30, 2010, No. 247, § 3.4, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053d - Issuance of license

(a) The Office of the Commissioner of Financial Institutions shall issue one (1) license for each office. Each license shall include the name of the licensee, the street address of the office where business shall be conducted, the date of issue, and the effective date of the license. The license to engage in the mortgage lending business shall not be transferrable and shall be displayed in a conspicuous place in the office to be viewed by the public.
(b) A licensee may only engage in the mortgage lending business under this chapter in or from the authorized office. Nothing provided herein shall be construed as to limit the loans that any licensee may grant to those who are residents of the community where the office is located. Said license shall not be used in an office with an address other than the one indicated thereon, in a place shared with any other business, or where other commercial transactions are conducted.
(c) If a licensee wishes to move an authorized office, he/she shall notify the Commissioner through the nationwide mortgage licensing system and registry not less than forty-five (45) days prior to the date on which the operations in the new office shall begin. If no objection is received from the Commissioner within fifteen (15) days after filing the notice of transfer, said transfer shall be deemed to be authorized. The Commissioner may modify this term by means of an administrative determination whenever necessary in his/her judgment.
(d) A licensee may engage in the mortgage lending business in any office or place of business in which other commercial transactions are conducted only when there is a previous written and justified authorization from the Commissioner. The Commissioner may revoke the authorization if he/she determines that carrying out those other transactions enables or conceals noncompliance with the provisions of this chapter, pursuant to §§ 2001 et seq. of this title, known as the “Financial Institutions Commissioner’s Act”, and §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act”.
History —Dec. 30, 2010, No. 247, § 3.5, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053e - License renewal

(a) In addition to the provisions of § 3052d of this title, every application to renew a license to engage in the mortgage lending business shall enclose the annual license fees in the amount of two thousand five hundred dollars ($2,500) per office and the application processing fees established by the nationwide mortgage licensing system and registry to be paid through said entity on the date of the filing.
(b) The license renewal application shall include:
(1) An audited financial statement showing that capital and assets minimum requirements set forth in subsections (a) and (b) of § 3053a of this title were met;
(2) an updated list of all mortgage loan brokers and originators contracted by the applicant, including any information as established by the Commissioner.
History —Dec. 30, 2010, No. 247, § 3.6, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter III - Mortgage Lending Buisness (§§ 3053 — 3053i) › § 3053h - Reports from mortgage lending licensees

All licensees shall submit the reports required by nationwide mortgage licensing system and registry in the form and including the content established by said entity.
History —Dec. 30, 2010, No. 247, § 3.9, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054 - Applicability and excluded entities

(a) This subchapter shall apply to any person who offers or renders services as a mortgage loan broker, as defined in § 3051 of this title.
(b) The following persons shall not be subject to the provisions of this subchapter:
(1) Banks authorized to operate in Puerto Rico that are regulated by a federal banking agency;
(2) federal agencies;
(3) agencies, municipalities, and instrumentalities of the Government of Puerto Rico;
(4) employee retirement systems of the Government of Puerto Rico and its instrumentalities;
(5) insurance companies authorized by the Commissioner of Insurance of the Commonwealth of Puerto Rico to do business in Puerto Rico; and
(6) any person who, as the owner, partner, director, official, agent, or employee, is engaged in any business to which obtaining loans or financing for the clients of said business is inherent, incidental, or necessary for the same, such as businesses involving the sale or lease of goods and services.
History —Dec. 30, 2010, No. 247, § 4.1, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054a - License requirements

To obtain a license to engage in the mortgage loan brokerage business under this subchapter, the applicant shall:
(a) Have liquid assets with a value of at least ten thousand dollars ($10,000) for the administration of the main office of the business, and liquid assets with a value of at least five thousand dollars ($5,000) for each additional office;
(b) furnish evidence of good standing; moral probity and financial solvency; experience, character, and general fitness of the applicant and the partners, directors, and executive officers such as to command the confidence and to warrant a determination that the applicant’s business shall operate honestly and efficiently and that it shall be in the best public interest;
(c) meet the minimum surety bond requirement described in § 3054c of this title.
History —Dec. 30, 2010, No. 247, § 4.2, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054b - License application

(a) Every application for a license to engage in the mortgage loan brokerage business shall enclose the annual license fees in the amount of one thousand dollars ($1,000) per office, as well as the investigation fees in the amount of five hundred dollars ($500) and the application processing fee or fees established by the nationwide mortgage licensing system and registry to be paid to said entity on the date of filing. If the license is issued after June 30th of any year, the annual license fee shall be in the amount of five hundred dollars ($500) for that year.
(b) In the event that the investigation fees exceed the aforementioned amount, the applicant shall be notified by the Commissioner and the former shall remit fifty percent (50%) of the estimated value of the remaining investigation to the Office of the Commissioner of Financial Institutions and pay the remainder upon the conclusion of the investigation. It shall be the Commissioner’s responsibility to make sure investigations are conducted promptly, taking into consideration the cost that this represents to the Financial Institution.
(c) The license application shall include:
(1) Financial statements showing compliance with the minimum asset requirement set forth in subsection (a) of § 3054a of this title;
(2) a copy of the surety bond required in § 3054c of this title.
History —Dec. 30, 2010, No. 247, § 4.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054c - Surety bond

Every applicant for a license to engage in the mortgage loan brokerage business in Puerto Rico shall file a surety bond in the amount of one hundred thousand dollars ($100,000), if the applicant plans to do business in a single office. Every additional office shall entail a five thousand dollar ($5,000)-increase in the surety bond. However, the Commissioner may require a higher surety bond based on the volume of business of the applicant and his/her financial situation.
History —Dec. 30, 2010, No. 247, § 4.4, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054d - Issuance of license

(a) The Office of the Commissioner of Financial Institutions shall issue one (1) license for each office. Each license shall include the name of the licensee, the street address of the office where business shall be conducted, the date of issue, and the effective date of the license. The license to engage in the mortgage loan brokerage business shall not be transferable and shall be displayed in a conspicuous place in the office visible to the public.
(b) A licensee may only engage in the mortgage loan brokerage business under this subchapter in or from the authorized office. Said license shall not be used in an office with an address other than the one indicated thereon and the maximum penalties provided in this chapter shall apply in such case, since it shall be considered as an illegally operating business—as if an authorized license had never been issued—in flagrant violation of laws and regulations.
(c) When the financial institution wishes to move an authorized office, it shall notify the Commissioner through the nationwide mortgage licensing system and registry not less than forty-five (45) days prior to the date on which the operations in the new office shall begin. If no objection is received from the Commissioner within fifteen (15) days after filing the notice of transfer, said transfer shall be deemed to be authorized. The Commissioner may modify this term by means of an administrative determination whenever necessary in his/her judgment
History —Dec. 30, 2010, No. 247, § 4.5, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054e - License renewal

(a) In addition to the provisions of § 3052d of this title, every application to renew a license to engage in the mortgage loan brokerage business shall enclose the annual license fees in the amount of one thousand eight hundred seventy-five dollars ($1,875) per office, if the volume of business conducted therein is equal or greater than five million dollars ($5,000,000), or one thousand dollars ($1,000) when the volume of business conducted therein is less than five million dollars ($5,000,000), as well as the application processing fees established by the nationwide mortgage licensing system and registry and paid to said entity on the date of the filing.
(b) The renewal application shall include financial statements showing that the minimum assets requirements set forth in subsections (a) of § 3054a of this title were met.
History —Dec. 30, 2010, No. 247, § 4.6, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter IV - Mortgage Loans Brokers (§§ 3054 — 3054i) › § 3054h - Mortgage loan brokers report

Every licensee covered by the provisions of this subchapter shall submit the reports required by the nationwide mortgage licensing system and registry in the form and including the content established by such entity.
History —Dec. 30, 2010, No. 247, § 4.9, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055 - Applicability and exclusions

(a) This subchapter shall apply to every mortgage loan originator as defined in § 3051 of this title.
(b) The following individuals shall not be subject to the provisions of this subchapter:
(1) Those registered mortgage loan originators as defined in subsection (bb) of § 3051 of this title;
(2) any individual who offers or negotiates the terms of a residential mortgage loan with or in favor of an immediate family member;
(3) any individual who offers or negotiates the terms of a residential mortgage loan secured by the dwelling that serves as the residence of said individual;
(4) a attorney at law who negotiates the terms of a residential mortgage loan in favor of a client as an matter incidental to the legal representation of such client, unless the attorney receives compensation from a lender, a mortgage loan broker, or other mortgage loan originator, or by any agent of said lender, mortgage loan broker, or mortgage loan originator.
(c) Residential mortgage loan underwriter that are independent contractors may not carry out the activities proper of a mortgage loan processor or underwriter without previously obtaining and maintaining a mortgage loan originator license pursuant to the provisions of this subchapter. Every independent contractor who is engaged in the processing of mortgage loans or is an underwriter shall obtain a unique identifier issued by the nationwide mortgage licensing system and registry.
History —Dec. 30, 2010, No. 247, § 5.1, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055a - License requirements

To obtain a mortgage loan originator license under this subchapter, the applicant shall prove that:
(a) He/she has never had a mortgage loan originator license revoked in any jurisdiction;
(b) he/she has not been convicted of, pled guilty or nolo contendere to a felony in any court of any jurisdiction:
(1) During a period of seven (7)-year period preceding the date of the application for licensing and registration, or
(2) at any time preceding such date of application, if such felony involved fraud, dishonesty, forgery, or money laundering.
(c) has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the loan originator shall operate honestly, fairly, and efficiently within the purposes of this chapter. For purposes of this section, a person shall be deemed to lack financial responsibility when he/she has shown negligence in the management of his/her financial situation;
(d) has completed the pre-licensing education requirement, as described in § 3055e of this title;
(e) has passed a written test that meets the test requirement described in § 3055f of this title;
(f) has met the minimum surety bond requirement described in § 3055c of this title; and
(g) is under the supervision of a single licensee to engage in the mortgage lending or brokerage business.
History —Dec. 30, 2010, No. 247, § 5.2, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055b - License application and registration

(a) Every initial application for a mortgage loan originator license shall enclose the annual license fees in the amount of one hundred dollars ($100), and the application processing fees established by the nationwide mortgage licensing system and registry to be paid to such entity.
(b) The license application shall include evidence that the surety bond requirement established in § 3055c of this title was met.
(c) Every applicant for a mortgage loan originator license shall provide the nationwide mortgage licensing system and registry with all the information regarding the his/her identity, including:
(1) Fingerprints for submission to the Federal Bureau of Investigation and to any other government agency or entity authorized to receive said information in order to investigate whether the applicant has a criminal history; and
(2) experience and personal history in a form to be furnished by the nationwide mortgage licensing system and registry, including the authorization granted to said entity and to the Commissioner to obtain:
(A) Independent credit reports from credit reporting agencies as described in Section 603(p) of the Fair Credit Reporting Act; and
(B) information regarding any administrative, civil, and criminal findings in any jurisdiction.
History —Dec. 30, 2010, No. 247, § 5.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055c - Surety bond

(a) Every applicant for a residential mortgage loan originator license shall file a surety bond whose amount shall be calculated on the basis of the volume of mortgage loans originated and be determined by the Commissioner through rules or regulations.
(b) Mortgage loan originators may use the surety bond of the entity with which they contract in lieu of the surety bond required for a mortgage loan originator.
History —Dec. 30, 2010, No. 247, § 5.4, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055d - License issuance and registration

(a) The Office of the Commissioner of Financial Institutions shall issue one (1) license for each mortgage loan originator. Each license shall include the name of the licensee, the street address of the office in Puerto Rico where the business shall be conducted, the date of issue, and the effective date of the license. The license issued to engage in the mortgage loan originator business shall not be transferrable and shall be displayed in a conspicuous place in the office to be viewed by the public.
(b) Every mortgage loan originator licensed under the provisions of this subchapter shall register with the nationwide mortgage licensing system and registry and maintain a unique identifier provided by said entity.
(c) Every licensee under the provisions of this subchapter shall be issued a unique identifier provided by the nationwide mortgage licensing system and registry. The unique identifier of every person that originates mortgage loans shall be clearly written in all application forms, mail, and advertisements, including business cards or websites, and in any other documents used for mortgage loans, as may be established through norms, regulations, or orders issued by the Commissioner.
History —Dec. 30, 2010, No. 247, § 5.5, eff. 120 days after Dec. 30, 2010.