2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 39 - Examinations and Reports (§§ 431 — 437) › § 431 - Annual examination, report issued

Every trust company shall be subject to examination, inspection and supervision by the Secretary of the Treasury of Puerto Rico who, either personally, or by some competent person or persons to be appointed by him to be known as examiners or investigators, shall visit and examine every such trust company at least once in every calendar year. Such examination or investigation shall also be made at any time, when in the judgment of the Secretary of the Treasury of Puerto Rico, the condition or management of the trust company is such as to render such examination or investigation of its affairs or conditions necessary or convenient. Every trust company or branch thereof so examined or investigated shall pay as an examination and/or annual investigation fee, the sum of two dollars ($2) for each ten thousand dollars ($10,000) or fraction of its resources or assets, excluding from such resources or assets any compensated account or control account; but the payment of said investigation and/or examination shall never be less than one thousand dollars ($1,000), and the sum thus paid shall be deposited in the Commonwealth Treasury.
The Secretary of the Treasury of Puerto Rico, and the examiners and/or investigators appointed by him, shall have the power to administer oaths to any person whose testimony may be required in any such examination and/or investigation, as well as to compel the attendance at any such examination and/or investigation of any such person, and to produce those documents, reports, statements, accounts, receipts and any other information needed to carry out the investigation. Each such examiner and/or investigator shall take an oath not to divulge the results of his examination and investigations, and in case of failure to keep such oath he shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not to exceed five hundred dollars ($500) or by imprisonment for a term not greater than six (6) months; or by both penalties, in the discretion of the court. Any person who refuses to appear before the Secretary or his investigators or examiners, or refuses to produce the information needed for the investigation after it has been required, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine which shall not exceed five hundred dollars ($500) or by imprisonment for a term not to exceed six (6) months, or both penalties, in the discretion of the court.
In every such examination and/or investigation, inquiry shall be made as to the condition and resources of the trust company, the mode of conducting and managing its affairs, its directors’ activities, the investment of its funds, the security and prudence of its management, and the guarantees offered for the compliance of its contracted obligations; and whether the requirements of its charter and of the laws of Puerto Rico have been and are being complied with in the administration of its affairs, as well as such other matters as the Secretary of Puerto Rico may prescribe.
The Secretary of the Treasury of Puerto Rico shall issue to each of the trust companies and branches thereof investigated by him or by the investigators and/or examiners appointed by him, a report on the results of the investigation and/or examination within a reasonable period of time after the investigation or examination has been concluded, which shall not exceed ninety (90) work days. Said report shall be presented to the board of directors of the trust company at the first regular session or special session held after the date the company received said report, and the Secretary of the Treasury may designate an official from the Department to be present at that time and to participate and collaborate in its discussion and analysis.
History —Apr. 23, 1928, No. 40, p. 234, § 26; June 26, 1980, No. 14, p. 900, § 6.