reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 437 - Records kept six years

Every trust company shall preserve all its records of final entry, including cards under the card system, and deposit tickets, for a period of at least six (6) years from the date of making the same or from the date of the last entry thereon.
History —Apr. 23, 1928, No. 40, p. 234, § 34, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 461 - Rights, powers, and duties of stockholders

The rights, powers and duties of stockholders of trust companies shall be as prescribed in the “General Corporation Law” and the “Banking Law of Puerto Rico”. The term “stockholder” as used in this section shall apply to:
(1) Such persons as appear by the books of the trust company to be stockholders.
(2) Every owner of stock legal or equitable although the same may be on the books in the name of another person; Provided, however, That such term shall not apply to a person holding stock as collateral security for the payment of debt and not appearing by the books of the trust company to be the owner and holder thereof in his own right, or to a person holding stock in a bona fide fiduciary capacity and not appearing by the books of the trust company to be the owner or holder thereof in his own right unless such fiduciary shall have invested the funds in his care in violation of law or of the terms in which said funds are held by him, in which case he shall be personally responsible as a stockholder.
History —Apr. 23, 1928, No. 40, p. 234, § 35, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 462 - Directors, requirements, term

The affairs of every trust company shall be managed and its corporate powers exercised by a board of directors of such number, not less than seven (7) nor more than twenty (20), as shall from time to time be prescribed in its bylaws. Not less than a majority of the total number of such directors and of each of the three classes thereof as hereinafter provided for shall be bona fide residents of Puerto Rico.
The persons named in the organization certificate, or such of them, respectively, as shall become holders of at least one share of such stock, shall constitute the first board of directors, and may add to their number not exceeding the number of twenty (20), and shall severally continue in office until others are elected to fill their respective places. Within six (6) months from the time when such trust company shall commence business, the first board of directors shall classify themselves by lot into three (3) classes as nearly equal as may be. The term of office of the first class shall expire on the third Wednesday of January next following such classification; the term of office of the second class shall expire one (1) year thereafter; and the term of office of the third class shall expire two (2) years thereafter; Provided, That all directors whose term of office shall expire as heretofore provided shall nonetheless continue in office until their successors are elected as hereinafter provided.
History —Apr. 23, 1928, No. 40, p. 234, § 36, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 463 - Election of directors; stockholders’ meetings

At or before the expiration of the term of the directors of the first class, and annually thereafter, a number of directors shall be elected by the stockholders equal to the number of directors whose terms will then expire, who shall hold their offices for three (3) years, or until their successors are elected, and at such election, the stockholders may fill for the balance of the unexpired term any vacancy which has occurred in the office of any other director and which vacancy has not been filled by the directors of the company. Such election shall be held at the principal place of business of the trust company. Notice of the time and place of holding the stockholders’ meeting for the election of directors and for action upon such other matters as may be brought before such meeting, shall be given by publication thereof at least once in each week for two (2) successive weeks immediately preceding such election in a newspaper, approved by the Secretary of the Treasury of Puerto Rico, published in the place where such election is to be held, and in such other manner as may be prescribed in the bylaws.
History —Apr. 23, 1928, No. 40, p. 234, § 37, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 464 - Directors shall be stockholders

Every director of a trust company shall be a stockholder of the trust company owning in his own right at least one (1) share of its capital stock; and every person elected to be a director who, after such election, shall hypothecate, pledge, or cease to be the owner in his own right of the amount of stock aforesaid, shall cease to be a director of the trust company and his office shall be vacant, and he shall not be eligible for reelection as a director for a period of one (1) year from the date of the next succeeding annual meeting.
History —Apr. 23, 1928, No. 40, p. 234, § 38, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 465 - Directors’ oath

Each director of a trust company, when appointed or elected, shall take an oath that he will, so far as the duty devolves on him, diligently and honestly administer the affairs of the trust company, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to such trust company, and that he is the owner in good faith and in his own right, of the number of shares of stock required by §§ 301—503 of this title, subscribed by him or standing in his name on the books of the trust company and that the same is not hypothecated, or in any way pledged as security for any loan or debt, and, in case of re-election or re-appointment, that such stock was not hypothecated, or in any way pledged as security for any loan or debt during his previous term of office as a director of the said trust company. Such oath shall be subscribed by the director making it, and certified by an officer authorized to administer oaths, and immediately transmitted to the Secretary of the Treasury of Puerto Rico.
History —Apr. 23, 1928, No. 40, p. 234, § 39, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 466 - Election of interim directors

In case of failure to elect any director on the day named, the directors whose terms of office do not that year expire may proceed to elect a number of directors equal to the number in the class whose term that year expires or such number as may have failed of re-election. The persons so elected, together with the directors whose terms of office shall not that year expire shall constitute the board until another election shall be held according to law. Vacancies occurring in the intervals of elections shall be filled by the board of directors for the balance of the unexpired term.
History —Apr. 23, 1928, No. 40, p. 234, § 40, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 467 - Election of officers

Within fifteen (15) days after the date on which the annual meeting of stockholders is held its directors shall, after their due qualification, hold a meeting at which they shall elect a president from their own number, a vice-president, and such other officers as are required by the bylaws to be elected annually.
History —Apr. 23, 1928, No. 40, p. 234, § 41, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 41 - Directors, Stockholders, and Meetings (§§ 461 — 468) › § 468 - Directors’ meetings

The directors of every trust company shall hold a regular meeting at least once in each month. If the number of directors necessary to constitute a quorum is not prescribed in the certificate of incorporation or organization certificate, or in the bylaws, and no provision is made therein for determining the same, the directors may fix such number, which shall not be less than one-third (⅓) of all the directors and in no case less than five (5), with the same effect as if such number were prescribed in the certificate of incorporation or organization certificate. The board of directors shall by resolution duly recorded in the minutes, designate an officer or officers whose duty it shall be to prepare and submit to each director at each regular meeting of the board, or to an executive committee of the board consisting of not less than five members thereof, a written statement of all the purchases and sales of securities, and of every discount, loan or other advance, including overdrafts and renewals made since the last regular meeting of the board, describing the collateral to such indebtedness as of the date of meeting at which such statement is submitted; but such officer or officers may omit from such statements, discounts, loans or advances including overdrafts and renewals of less than one thousand dollars ($1,000) excepting as hereinafter provided. Such statement shall also contain a list giving the aggregate of loans, discounts and advances including overdrafts to each individual partnership, unincorporated association, corporation or person whose liability to the trust company has been increased one thousand dollars ($1,000) or more since the last regular meeting of the board, together with a description of the collateral to such indebtedness held by the trust company at the date of the meeting at which such statement is submitted. A copy of such statement, together with a list of the directors present at such meeting, verified by the affidavit of the officer or officers charged with the duty of preparing and submitting such statement shall be filed with the records of the trust company within one day after such meeting, and be presumptive evidence of the matters therein contained.
History —Apr. 23, 1928, No. 40, p. 234, § 42, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 43 - Dissolution and Liquidation (§§ 491 — 494) › § 491 - Liquidation or receivership because of unsound condition

If in consequence of an examination made or a report from an examiner, the Secretary of the Treasury of Puerto Rico should have reason to believe that a trust company is not in a sound financial condition to continue doing business, or that its affairs are conducted in such manner that the public or the persons or firms having funds or securities under its custody are in danger of being defrauded, he may, after hearing the trust company, recommend to the Secretary of Justice that he institute proper action or proceedings to the end that the trust company may be declared in a state of liquidation, or that it may be placed under receivership, as the Secretary of the Treasury of Puerto Rico may deem best, and the Secretary of Justice is hereby authorized and directed to act in accordance with the recommendations of the said Secretary of the Treasury of Puerto Rico.
History —Apr. 23, 1928, No. 40, p. 234, § 27, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 43 - Dissolution and Liquidation (§§ 491 — 494) › § 492 - Liquidation because of refusal to submit to inspection, violation of law or charter, or insolvency

If any trust company shall refuse to submit its books, papers and affairs to the inspection of any duly appointed examiner, or if it shall be found to have violated its charter or any law governing it, or if it is found to be insolvent, the Secretary of the Treasury of Puerto Rico shall report the fact to the Secretary of Justice of Puerto Rico who shall institute such action as may be necessary in the proper court and if the court shall find that the charges made are true, it shall decree the dissolution and liquidation of such trust company.
History —Apr. 23, 1928, No. 40, p. 234, § 28, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 43 - Dissolution and Liquidation (§§ 491 — 494) › § 493 - Voluntary dissolution

Whenever any trust company shall determine by its board of directors, with the consent of three-fourths (¾) of its stockholders in interest, to discontinue its business and settle its affairs, it shall be lawful for such board of directors to file with the Secretary of the Treasury of Puerto Rico a certificate in writing signed and acknowledged by such stockholders, expressing said consent, and likewise the certificate of said board of directors under the corporate seal, setting forth such intention, and that they thereby surrender to the Commonwealth of Puerto Rico their corporate privileges and powers; and thereupon said corporation shall be deemed and taken to be dissolved, except for the purpose of distributing its assets, and otherwise settling its affairs, but such trust company shall, nevertheless, be continued a body corporate for the term of three (3) years after the time of such surrender for the purpose of prosecuting and defending suits by or against it and closing its concerns, but not for any other business or purpose whatsoever; and the said board of directors shall act as trustees for that purpose, subject to the orders of a court of competent jurisdiction on application of any creditor or stockholder and to removal or any action by such court.
History —Apr. 23, 1928, No. 40, p. 234, § 43, eff. 90 days after Apr. 23, 1928.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 45 - Miscellaneous Provisions (§§ 501 — 503) › § 501 - Prohibition against engaging in banking transactions

The trust companies organized after the date of approval of this act shall not engage in banking transactions covered by §§ 1 et seq. of this title.
History —Apr. 23, 1928, No. 40, p. 234, added as § 45 on June 26, 1980, No. 14, p. 900, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 45 - Miscellaneous Provisions (§§ 501 — 503) › § 502 - Change in control

(a) In the case of any transfer of capital voting stock issued and outstanding from any trust company organized under the provisions of §§ 301—503 of this title, to any person or entity (or more than one acting in common accord) in which, once the transfer has been made, the acquirer directly or indirectly holds more than five percent (5%) of said trust’s capital voting stock issued and outstanding, the parties to the transfer and said trust shall notify the terms thereof to the Secretary of the Treasury of Puerto Rico not less than sixty (60) days prior to the date on which said transfer shall be completed. This transfer shall need the approval of the Secretary of the Treasury if the same results in a change of control over the trust. It shall be presumed that a change of control has occurred, when, as a result of the transfer, an acquirer (or acquirers, acting in common accord), that prior to the transfer did not hold, directly or indirectly, more than five percent (5%) of the capital voting stock issued and outstanding of said trust, directly or indirectly holds more than the above-mentioned percent of said stocks.
(b) For the purposes of these sections, the term “control” means the power to, directly or indirectly, direct or decisively influence in the administration or standards of the trust.
(c) The notification to the Secretary shall include information on the number of shares involved in the operation, the name and address of the seller (or transferor) and the buyer (or transferee), the purchase price, the total number of shares the seller (or transferor) and the buyer (or transferee) own, respectively, before the proposed operation is carried out.
(d) It shall be the duty of the Secretary of the Treasury, as soon as he receives notice of the proposed operation which would result in the control or in a change of control of a trust, to make the investigations needed with respect to:
(1) Moral and financial experience and responsibility of the buyer (or transferee);
(2) whether said financial and moral experience and responsibility guarantee the efficient operation of the trust, and
(3) whether the transfer of control of the trust would jeopardize the interests of the depositors, creditors or stockholders of the trust.
(e) The Secretary of the Treasury shall issue the authorization for the transfer of control of a trust if the result of his investigation were satisfactory in his judgment. The resolution of the Secretary of the Treasury shall be final, and the same shall not be subject to review.
History —Apr. 23, 1928, No. 40, p. 234, added as § 46 on June 26, 1980, No. 14, p. 900, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 45 - Miscellaneous Provisions (§§ 501 — 503) › § 503 - Rules and regulations

The Secretary of the Treasury shall promulgate the rules and regulations needed for the compliance with §§ 301—503 of this title and to insure the proper functioning of the trust companies in Puerto Rico, as well as for the protection of the public in general.
History —Apr. 23, 1928, No. 40, p. 234, added as § 47 on June 26, 1980, No. 14, p. 900, § 8.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 551 - Creation and purpose

To aid the Commonwealth Government in the performance of its fiscal duties and more effectively to carry out its governmental responsibility to develop the economy of Puerto Rico, particularly with respect to its industrialization, there is hereby created a corporation as a governmental instrumentality of the Commonwealth Government to act by its authority under the title of “Government Development Bank for Puerto Rico” (hereinafter referred to as “the Bank”).
History —Sept. 23, 1948, No. 17, p. 209, §§ 1, 22; Apr. 2, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 553 - Public purpose; tax exemption; contribution to the General Fund

It is hereby found and declared that the purpose for which the Bank is created is to aid the Commonwealth Government in the performance of its fiscal duties and more effectively to carry out its government responsibility to develop the economy of Puerto Rico, particularly with respect to its industrialization, and is a public purpose in all respects for the benefit of the Commonwealth of Puerto Rico, and that therefore the Bank shall not be required to pay any taxes or assessments on any of the property acquired or to be acquired by it, or on its operations or activities, or on the income derived from any of its operations or activities. In order to facilitate the procurement of funds by the Bank to enable it to carry out its said purpose, all bonds, notes, debentures or other obligations of the Bank and the income therefrom shall be exempt from any income tax. The debts or obligations of the Bank shall not be debts or obligations of the Commonwealth Government or of any of the municipalities or other political subdivisions of Puerto Rico and neither the Commonwealth Government nor any of such municipalities or other political subdivisions shall be responsible for the same.
From the fiscal year beginning July 1, 2000 and ending on June 30, 2001, the Bank may transfer every year to the General Fund of the Commonwealth of Puerto Rico up to ten percent (10%) of its audited net income or the amount of ten million dollars ($10,000,000), whichever is greater. Said contribution may be transferred on the first day of the fiscal year, that is on July 1 of each year. However, if the payment is made prior to the completion of the audited financial statements, the ten percent (10%) computation shall be revised once said audited financial statements are submitted, and if any difference is found, the corresponding adjustment shall be made.
History —Sept. 23, 1948, No. 17, p. 290, §§ 5, 22; Apr. 26, 1957, No. 3, p. 3, §§ 2, 3; June 16, 2002, No. 82, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 554 - Legal reserve

The Bank shall maintain a reserve of not less than twenty percent (20%) of its liabilities on accounts of deposits on demand. No less than fifty percent (50%) of such reserves consist on cash or investment instruments with maturities not exceeding ninety (90) days. For the avoidance of doubt, any funds of municipalities on deposit in the Bank representing undisbursed amounts of loans from the Bank to such municipalities shall not be included as deposits on demand for purposes of the calculation of the legal reserve. The Secretary of the Treasury may, at the request of the Board of Directors of the Bank, evidenced by a resolution to that effect, suspend this legal reserve requirement for a term of no more than three (3) months, subject any reasonable term or condition set forth by the Secretary, due to the existence of a fiscal emergency.
History —Sept. 23, 1948, No. 17, p. 290, §§ 6, 22; Apr. 26, 1957, No. 3, p. 3, § 3; May 30, 1960, No. 13, p. 23, §§ 2, 3; Aug. 9, 1998, No. 215, § 8; July 1, 2015, No. 97, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 555 - Effect of endorsement

The endorsement by any bank or trust company, organized under or subject to the “Banking Law”, §§ 1 et seq. of this title, of any draft, note, bill of exchange or acceptance discounted or pledged by it to the Bank shall constitute a waiver of demand, notice and protest by such bank or trust company as to its own endorsement exclusively.
History —Sept. 23, 1948, No. 17, p. 290, §§ 7, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 556 - Quarterly report of loans

The Bank shall make and submit to the Commissioner of Financial Institutions a written report of its conditions as of the last day of each fiscal quarter, in such manner as the Commissioner of Financial Institutions of Puerto Rico may prescribe. Such report shall show the total amount of outstanding loans to directors, officers, agents and employees or to any privately-owned enterprises in which one or more of the directors, officers, agents or employees may own a substantial interest and outstanding loans guaranteed by a director, officer, agent or employee shall be subscribed by an officer of the Bank and verified by his oath stating that to the best of his knowledge and belief the report is true and correct in all respects, and shall be submitted to the Commissioner of Financial Institutions of Puerto Rico within the first thirty (30) days after the end of each fiscal quarter, legal holidays excluded.
History —Sept. 23, 1948, No. 17, p. 290, §§ 8, 22; Apr. 26, 1957, No. 3, p. 3, § 3; Aug. 9, 1998, No. 215, § 9.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 557 - Annual report; publication

The Bank shall file in the Department of State of Puerto Rico, annually, within ninety (90) days after the close of its fiscal year, a report sworn to by an officer or by any two (2) directors of the Bank, stating:
(1) The name of the Bank;
(2) the location, town or city, street and number, if there is a number, of its main office in Puerto Rico;
(3) a statement of financial condition for the last fiscal year, and
(4) the names and post office addresses of all directors and officers of the Bank and the time when the term of office of each expires.
The statement of financial condition shall be published by the Bank in a newspaper of general circulation in Puerto Rico.
History —Sept. 23, 1948, No. 17, p. 290, §§ 9, 22; Apr. 26, 1957, No. 3, p. 3, § 3; Aug. 9, 1998, No. 215, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 558 - Examination and supervision

The Bank shall be subject to examination and supervision by the Commissioner of Financial Institutions Rico, in accordance with the terms of the Banking Law, §§ 1 et seq. of this title, applicable to banks organized under or subject to the provisions thereof. The Commissioner of Financial Institutions may change the Bank a nominal sum that shall never exceed twenty-five thousand dollars ($25,000) to cover the actual expenses incurred in the process of such examination; Provided, That such action is necessary due to budgetary problems on the part of the Office of the Commissioner of Financial Institutions.
The Commissioner of Financial Institutions shall issue to the Bank a certificate setting forth the result of such examination, which certificate shall be presented to the Board of Directors at its next regular or special meeting.
The Bank shall also be subject to an annual examination and audit by certified public accountants of national reputation selected by the Board of Directors of the Bank.
History —Sept. 23, 1948, No. 17, p. 290, §§ 10, 22; Apr. 26, 1957, No. 3, p. 3, § 3; Aug. 9, 1998, No. 215, § 11.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 559a - Priority of expenses and unsecured claims in a receivership

(a) Unsecured claims against the Bank, or the receiver for the Bank under this chapter, that are proven to the satisfaction of the receiver, shall have priority in the following order:
(1) Administrative expenses of the receiver.
(2) Wages, salaries, or commissions, including vacation, severance, and sick leave pay, or other similar employee benefits, earned by an individual prior to the appointment of the receiver in accordance with the Bank’s employment policies or by applicable law.
(3) Contributions owed to employee benefit plans arising from services rendered before the date of appointment of the receiver.
(4) Any unpaid balance of money held by the Bank in its depository accounts for the credit of a depositor and any other general or senior liability of the Bank (which is not a liability described in clause (5)).
(5) Any obligation that is statutorily or contractually subordinated to general unsecured creditors.
(b) This section shall not affect secured claims or security entitlements in respect of assets or property held by the Bank, and all such secured claims or security entitlements shall be paid from the security or from the realized value of the security. To the extent that the security is insufficient to satisfy the claim, then the difference between the claim and the realized value of the security shall be paid in accordance with this section.
(c) Notwithstanding any other provision of §§ 561—568 of this title or the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act, a depositor or receiver may offset the amount of its deposit against any outstanding balance of a loan from the Bank as full and final payment up to the amount of the deposit.
(d) The priority for administrative expenses, as that term is used in subsection (a), shall include (1) those obligations incurred by the Bank before the appointment of the receiver relating to goods and services provided to the Bank before such appointment, other than individual claims in excess of a threshold to be determined by the receiver in its reasonable discretion; (2) those obligations incurred by the Bank after the appointment of the receiver relating to goods and services provided to the Bank after such appointment; and (3) any other obligations that the receiver determines are appropriate to facilitate the orderly resolution of the Bank.
(e) The Secretary of the Treasury, after consultation with the receiver and the Governor, shall have the power to waive, reduce, subordinate or assign any claim of a governmental unit except if such governmental unit is a municipality, provided, however, that any portion of a claim that has been assigned pursuant to this subsection may not be setoff by the assignee as provided for in subsection (c) of this ection.
History Apr. 6, 2016, No. 21, § 302.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 560 - Misfeasance of directors

If any director of the Bank shall violate or knowingly or negligently permit any of the officers, agents or employees of the Bank to violate any laws or any of the provisions of the Charter of the Bank, the matter shall be reported to the Governor by the Secretary of the Treasury of Puerto Rico. Upon receiving such report the Governor shall call a meeting of the Council of Secretaries and shall submit to it the report with his recommendations. The Council of Secretaries shall give the director under charge the opportunity to be heard and thereafter it may remove such director and take whatever additional action it may deem necessary.
History —Sept. 23, 1948, No. 17, p. 290, §§ 12, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 561 - Certification of checks, penalty for fraud

Neither the Bank nor any officer, agent or employee thereof shall certify any check drawn upon it unless the drawer of such check has on deposit with the Bank at the time such check is certified an amount not less than the amount of such check. Any check so certified by a duly authorized officer, agent or employee of the Bank shall be a valid obligation of the Bank in the hands of any person holding such check in good faith; but any officer, agent or employee of the Bank who knowingly acts in violation of the provisions of this section shall be deemed guilty of a misdemeanor and shall be liable to imprisonment for not less than one nor more than two years.
History —Sept. 23, 1948, No. 17, p. 290, §§ 13, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 562 - Preferential transfers ineffective

All transfers of notes, bonds, bills of exchange or credits of the Bank or of deposits to the credit thereof, and all assignments of mortgages, security on real property, or of judgments or decrees in favor of the Bank, and all deposits of money, gold and silver bars, or other thing of value and all payments of money to its creditors, made while the Bank is insolvent, or in anticipation of insolvency, with the intent of preventing the application of the assets of the Bank in the manner prescribed in §§ 551—568 of this title, or with the intent of giving preference to one creditor over another, shall be null and ineffective.
History —Sept. 23, 1948, No. 17, p. 290, §§ 14, 22; Apr. 26, 1957, No. 3, p. 3, § 3; Aug. 9, 1998, No. 215, § 12.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 563 - Accepting deposits after insolvency

The members of the Board of Directors, officers, and employees of the Bank shall be indemnified by the Bank and shall not have any personal civil liability to any entity for actions taken or not taken in good faith in their capacity and authority, absent clear and convincing proof of gross negligence comprising reckless disregard of, and failure to perform, applicable duties. Any civil action brought in any court for gross negligence shall be dismissed with prejudice if the defendant produces documents showing such defendant was advised of relevant facts, participated in person or by phone, and deliberated in good faith or received and relied on the advice of experts in respect of whatever acts or omissions form the basis of the complaint.
History —Sept. 23, 1948, No. 17, p. 290, §§ 15, 22; Apr. 26, 1957, No. 3, p. 3, § 3; July 1, 2015, No. 97, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 564 - Embezzlement and other offenses

Every director, officer, employee or agent of the Bank who embezzles, abstracts or willfully misapplies any moneys, funds, credits or securities of the Bank, or who, without being duly authorized, issues or draws any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment or decree for, or who makes any false entry in any book, report or statement of, the Bank, with intent, in any of such cases, to injure or defraud the Bank or any other company, body politic or corporate, or any individual person, or to deceive any officer of the Bank or any agent appointed to examine the affairs of the Bank, and every person who with like intent aids or abets any director, officer, agent or employee in any violation of this section, shall be deemed guilty of a felony, and shall be imprisoned for not less than ten (10) years; Provided, That the Bank shall collect and cover into its funds, from the amount of any life insurance policy which the bank may have taken for such director, officer, employee or agent and the premiums which the Bank may have paid, up to the sum embezzled or disposed of by the director, officer, employee or agent, and the director, officer, employee or agent, his beneficiaries, assignees or successors in interest shall lose all rights to the benefits of such policy.
History —Sept. 23, 1948, No. 17, p. 290, §§ 16, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 565 - False rumors of insolvency

Any person or publication that knowingly and maliciously makes, circulates or transmits to another, or to others, any statement, rumor or suggestion, whether written, printed, or by word of mouth, which directly or by inference discredits the financial condition of the Bank or any of its branches, or which affects its solvency or credit, or any person or publication that advises, aids, procures, or induces another to originate, transmit, or circulate any such statement or rumor, shall be guilty of a felony, and upon conviction shall be punished by a fine of not less than five hundred dollars ($500), or by confinement in the penitentiary for a term of not more than five (5) years, or by both penalties.
History —Sept. 23, 1948, No. 17, p. 290, §§ 17, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 566 - Banking Law not applicable

In view of the inclusion in §§ 551—568 of this title of all necessary and pertinent provisions similar to provisions contained in the “Banking Law”, §§ 1 et seq. of this title, none of the provisions of the “Banking Law”, §§ 1 et seq. of this title, shall apply to the Bank, its directors, officers, employees, or agents.
History —Sept. 23, 1948, No. 17, p. 290, §§ 18, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 567 - Obligations or commitments not impaired

No amendment to §§ 551—568 of this title or to any other law of Puerto Rico shall impair any obligation or commitment of the Bank.
History —Sept. 23, 1948, No. 17, p. 290, §§ 19, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter I - General Provisions (§§ 551 — 569) › § 568 - English version of text prevails

It is hereby declared that the official text of §§ 551—568 of this title is the English version thereof and if in the interpretation and application of §§ 551—568 of this title any conflict arises as between the Spanish and English texts thereof, the latter shall prevail over the former.
History —Sept. 23, 1948, No. 17, p. 290, §§ 21, 22; Apr. 26, 1957, No. 3, p. 3, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 581 - Fiscal Agent to the government, its agencies and municipalities

(A) The Government Development Bank for Puerto Rico (hereinafter called the “Bank”) shall be and it is hereby authorized to act as fiscal agent of the Commonwealth Government, its agencies and municipalities and of the Secretary of the Treasury of Puerto Rico for the purpose of registering, authenticating or countersigning the bonds, notes or other evidences of indebtedness of the Commonwealth Government, its agencies and municipalities and of the Secretary of the Treasury of Puerto Rico, and to perform, without limitation, such other services for the Commonwealth Government, its agencies and municipalities and for the Secretary of the Treasury of Puerto Rico, for any purpose not contrary to already existent legislation, subject, however, to the approval of the Secretary of the Treasury of Puerto Rico on such terms as may be agreed upon by and between the Bank and the Secretary of the Treasury of Puerto Rico for services rendered to the Commonwealth Government, its agencies and the Secretary of the Treasury of Puerto Rico, and on such terms as may be agreed upon by and between the Bank and the municipalities of Puerto Rico for services rendered to the municipalities of Puerto Rico.
(B) The Bank may compel any instrumentality or public incorporation of the Commonwealth of Puerto Rico to deliver or grant access to its books, records and other documents, including, without limitation, budgets, financial statements, certificates, audit reports, notifications, policies, procedures, manuals, plans and any other information related to the finances of such instrumentality or public corporations as the Bank may seem appropriate.
In case of failure or refusal to comply with a summons issued by the Bank, the Court of First Instance of Puerto Rico within whose jurisdiction the person object of said summons is found, resides, does business or performs its duties, shall issue against that person, at the request of the Bank, an order requiring him to appear before the Bank to present evidence, if it is so ordered, or to testify on the matter under investigation. The person will be found in contempt if he disobeys the court’s order.
History —May 15, 1945, No. 272, p. 952, §§ 1, 15; Sept. 23, 1948, No. 17, p. 290, §§ 4, 22; Apr. 26, 1957, No. 3, p. 3, § 3; July 1, 2015, No. 97, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 582 - Paying or co-paying agent

The Bank shall be and is hereby authorized to act as paying or co-paying agent, with or on behalf of the Secretary of the Treasury of Puerto Rico for the payment of interest and principal of bonds, notes or other evidences of indebtedness issued by the Commonwealth Government and its agencies, and by the Secretary of the Treasury of Puerto Rico and by or on behalf of the municipalities of Puerto Rico, on such terms as may be agreed upon by and between the Bank and the Secretary of the Treasury of Puerto Rico. No agency of the Commonwealth Government nor municipality thereof, shall select any other bank, trust company, individual, partnership, or corporation to act as such paying agent or co-paying agent for such purposes, unless the Secretary of the Treasury of Puerto Rico shall otherwise determine.
History —May 15, 1945, No. 272, p. 952, §§ 2, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 583 - Financial advisory and reporting agency on government bonds, etc.—Report

The Bank shall be and it is hereby appointed and authorized to act as Financial Advisory and Reporting Agency to the Governor of Puerto Rico and to the Secretary of the Treasury of Puerto Rico. The Bank is hereby directed to prepare and submit to the Governor of Puerto Rico and to the Secretary of the Treasury of Puerto Rico, prior to the issuance, sale or exchange by the Commonwealth Government or by the Secretary of the Treasury of Puerto Rico of any bonds, notes or other evidences of indebtedness, issued pursuant to the provisions of any law authorizing the issuance, sale or exchange of such bonds, notes or other evidences of indebtedness by the Commonwealth Government, its agencies or by the Secretary of the Treasury of Puerto Rico, a report as to the feasibility of such financing procedure, including the Bank’s recommendation as to maximum interest rate, redemption privileges and premium therefor, maturity schedule, proper sale procedure and other relevant information.
History —May 15, 1945, No. 272, p. 952, §§ 3, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 584 - Financial advisory and reporting agency on government bonds, etc.—Access to records and other information

The Secretary of the Treasury of Puerto Rico is hereby authorized and directed to make available to the Bank for the purposes of § 583 of this title, prior to the issuance, sale or exchange by the Commonwealth Government or its agencies, or by the Secretary of the Treasury of Puerto Rico, of any bonds, notes, or other evidences of indebtedness, such transcripts, certificates, documents or other information, as the bank may in its discretion require for an understanding of the financing procedure proposed by the Commonwealth Government or its agencies, or by the Secretary of the Treasury of Puerto Rico.
History —May 15, 1945, No. 272, p. 952, §§ 4, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 585 - Financial advisory and reporting agency on municipal bonds, etc.—Report

The Bank shall be and is hereby appointed and authorized to act as a Financial Advisory and Reporting Agency to the Council of Secretaries of Puerto Rico and to the Secretary of the Treasury of Puerto Rico. The Bank is hereby directed to prepare and submit to the Council of Secretaries of Puerto Rico and to the Secretary of the Treasury of Puerto Rico, prior to the issuance, sale or exchange by any municipality of Puerto Rico or by the Secretary of the Treasury of Puerto Rico on the behalf of any municipality, of any bonds, notes, or other evidences of indebtedness, issued pursuant to the provisions of any law, authorizing the issuance, sale or exchange of such bonds, notes or other evidences of indebtedness by the municipalities of Puerto Rico, or by the Secretary of the Treasury of Puerto Rico, on behalf of the municipalities of Puerto Rico, a report as to the feasibility of such financing procedure, including the Bank’s recommendation as to maximum interest rate, redemption privileges and premiums therefor, maturity schedule, proper sale procedure and other relevant information.
History —May 15, 1945, No. 272, p. 952, §§ 5, 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 61 - Government Development Bank for Puerto Rico (§§ 551 — 607i) › Subchapter II - Development Bank as Agent for the Government (§§ 581 — 595) › § 586 - Financial advisory and reporting agency on municipal bonds, etc.—Access to records and other information

The municipalities of Puerto Rico and the Secretary of the Treasury of Puerto Rico are hereby authorized and directed to make available to the Bank, for the purposes of § 585 of this title, prior to the issuance, sale or exchange by the municipalities of Puerto Rico or by the Secretary of the Treasury of Puerto Rico on behalf of the municipalities of Puerto Rico, of any bonds, notes or other evidences of indebtedness, such transcripts, certificates, documents or other information, as the Bank may, in its discretion, require for an understanding of the financing procedure proposed by any municipality of Puerto Rico or by the Secretary of the Treasury of Puerto Rico on behalf of any municipality of Puerto Rico.
History —May 15, 1945, No. 272, p. 952, §§ 6, 15.