reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VII - Institutional Changes (§§ 1367 — 1367b) › § 1367 - Mergers or consolidations—Limits

No cooperative shall merge or consolidate with another cooperative, except as provided in §§ 1367a and 1368f of this title. Cooperatives shall not sell their assets nor acquire obligations or debts insurable by the Corporation, except in the normal course of business, with the prior authorization of the Corporation and pursuant to what is established by regulations.
History —Oct. 28, 2002, No. 255, § 7.01.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VII - Institutional Changes (§§ 1367 — 1367b) › § 1367a - Mergers or consolidations—Voluntary

Two or more cooperatives organized pursuant to this chapter, may voluntarily merge or consolidate, with the approval of the assembly of members or delegates, as applicable, with the prior approval of the Corporation, and according to the procedure established by regulations or by administrative determination. When one or more cooperatives merge, one of them shall grant its name, assets, and other properties and rights to the other cooperative, which shall be the one that shall continue to exist as a recognized juridical entity. When two or more cooperatives merge, they shall form a new cooperative entity different from the existing ones.
No voluntary merger or consolidation transaction, sale of assets and/or liabilities, nor any other similar transaction or agreement with institutions that are not cooperatives, shall be allowed.
History —Oct. 28, 2002, No. 255, § 7.02.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VII - Institutional Changes (§§ 1367 — 1367b) › § 1367b - Voluntary dissolution

Any cooperative whose dissolution does not require disbursements by the Corporation under the shares and deposits insurance, may be voluntarily dissolved through the approval of the corresponding general assembly of members or the general assembly of delegates, following the procedure established by to such effects by the Corporation. When the dissolution requires disbursements by the Corporation, the procedure that is established § 1368j shall be observed.
History —Oct. 28, 2002, No. 255, § 7.03.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368 - Cooperative fiscal year

The fiscal year of every cooperative shall be established in the incorporation clauses and in the general regulations thereof.
History —Oct. 28, 2002, No. 255, § 8.01.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368a - Notices and calls to sessions

In every case that the cooperative notifies or calls its members to session, said notice or call may be made by:
(a) Remitting it by mail to the address found in the records of the cooperative, or
(b) publication in a newspaper of general circulation, along with the posting of clearly-visible posters in the branches and service offices of the cooperative.
Cooperatives may also use electronic or radio broadcasting means, as supplementary mechanisms, in addition to those described above.
History —Oct. 28, 2002, No. 255, § 8.02.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368b - Reports

Cooperatives shall submit all such reports that the Corporation requires, with such frequency, detail, and in the form required through its orders, or regulations. The President and the Secretary of the Board shall certify that the annual financial statements of the cooperative are correct, according to their best knowledge and belief, and that they were examined and discussed by the Board. The statements shall be filed at the Corporation no later than one hundred and twenty (120) days following the termination date of the fiscal year of the cooperative.
Every cooperative shall keep a detailed accounting of its operations and activities based on generally-accepted public accounting principles, except in those cases otherwise provided in this chapter. Furthermore, the Corporation may require the cooperatives to submit reports on its internal controls, attested by certified public accountants.
History —Oct. 28, 2002, No. 255, § 8.03.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368c - Adjudicative procedures

When by provision of this chapter or its regulations, the cooperative must adjudicate a complaint presented by any cooperative, its board of directors, committees and executive officials, or by any partner or depositor of a cooperative, for violations of this chapter, §§ 1334 et seq. of this title, or the regulations adopted hereby, or for violations to the general regulations of the cooperative, the Corporation, on its own initiative, or by petition of any of the parties, shall submit the matter to the consideration of an arbitration panel composed of three (3) arbitrators, one (1) selected by each party in the controversy, and the third selected by mutual agreement by the two first arbiters. In the event there are more than two parties in the controversy, additional arbitrators may be designated. In the event the panel results in an even number of arbitrators, they shall designate an additional arbitrator by mutual agreement to ensure an uneven number. The Corporation shall adopt rules that shall govern the arbitration procedure, including, among others, the eligibility requirements of the arbitrators, rules of procedure to be applied, the corresponding charges and fees to defray the cost of the arbitration procedure, and the assumption of the costs and expenses by the parties. The arbitration panels shall apply the existing standards and shall not generate interpretations or opinions that imply the adoption of public policy. In order to assure a correct application of juridical and regulatory norms, the Corporation shall provide technical assistance to the arbitration panels. The party affected by the decision of the arbitration panel, may request judicial review of said decision before the Court of First Instance in which the main office of the cooperative is located, within fifteen (15) days following the date the decision of the panel is served.
In those cases that the Corporation determines that the public interest requires a direct adjudication, the regulatory procedures established by the Corporation pursuant to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico”, shall be observed.
History —Oct. 28, 2002, No. 255, § 8.04.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368d - Inspections, auditors and examinations

Every cooperative covered by this chapter, shall submit audited financial statements annually to the [Corporation], Cooperative Development Administration, and the Puerto Rico Cooperatives League, within one hundred and twenty (120) days following the close of operations of its fiscal year. The audited financial statements of the cooperatives remitted to the abovementioned entities shall be available to the general public, and may be copied upon payment of fees. The cooperative shall also remit a copy of the letter issued by the external auditors, to the Corporation, within the same term.
History —Oct. 28, 2002, No. 255, § 8.05.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368e - Support and rehabilitation—Public policy

It is the public policy of the Commonwealth to support and propitiate the development of every cooperative. Pursuant thereto, the Corporation shall seek to identify in a timely manner, any operating, financial or managerial weakness that requires corrective action. Once identified, the Corporation shall ascertain that the cooperative shall orderly and efficiently put into effect the necessary corrective measures that shall propitiate [sic] its fostering and development for which it may use the administrative and regulatory measures provided in §§ 1334 et seq. of this title, in this chapter, and in the special laws that are applicable.
The primary responsibility of the executive or management bodies of the cooperative shall be the implementation of the corrective measures provided by the Corporation, without impairing the powers of the corporation to bring charges and the removal of officials, directors and employees, pursuant to §§ 1334q and 1365w of this title. In those cases that the protection of the members and the depositors, the continuity or integrity of the operations of the cooperative, or the protection of the insurance fund of the Corporation is required, it may adopt the necessary regulatory measures provided in §§ 1334 et seq. of this title, in this chapter, and in the special laws that are applicable, leading to the rehabilitation and support of the cooperative.
Before proceeding to decree a merger, consolidation, sale of assets and the assumption of liabilities, or the dissolution and liquidation of a cooperative, the Corporation shall be required, through the affirmative two-thirds (2 / 3) vote of its Board of Directors, to make an express determination that there is no possibility of rehabilitating the cooperative.
History —Oct. 28, 2002, No. 255, § 8.06.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368f - Mandatory merger or consolidation

Before proceeding to decree the mandatory merger or consolidation, of a cooperative when the Corporation, through the two-thirds (2 / 3) vote of its Board of Directors, makes an express determination that there is no possibility of rehabilitating the cooperative, and the merger or consolidation and the share or deposit insurance be approved. At no time shall the cooperative that is proposed to be the recipient, be bound to accept the merger.
No transaction for the merger, consolidation, sale of assets or liabilities, nor any other similar transaction or agreement with institutions that are not cooperatives, shall be performed.
History —Oct. 28, 2002, No. 255, § 8.07.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VIII - Administrative Provisions, Inspection (§§ 1368 — 1368j) › § 1368i - Dissolution—Causes

The Corporation may direct the dissolution of a cooperative when:
(a) It is in danger of financial insolvency;
(b) it is confirmed that the real value of the shares has dropped by more than five percent (5%) of their book value, after an economic study to such effect;
(c) it fails to comply with the necessary requirements to avail itself of the shares and deposits insurance of the Corporation, and
(d) it fails to pay the regular or special premiums to the Corporation, or deposit the capital contribution required by law.
Before proceeding to decree the dissolution of a cooperative, it shall be required for the Corporation, through the affirmative vote of two-thirds (2 / 3) of its Board of Directors, to make an express determination that the cooperative has no possibility of being rehabilitated.
History —Oct. 28, 2002, No. 255, § 8.10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369 - Exclusive use of name

(a) Any natural or juridical person other than an association organized and registered pursuant to the provisions of this chapter, is forbidden to use or be identified under the name of “Savings and Credit Union”. It is also forbidden for any person, natural or juridical, other than a recognized cooperative entity, to use as a name, trade name, mark or designation of itself or its products, goods or services, the term “cooperative” or “COOP”[.] For the purposes of this section, the following shall be deemed as a recognized cooperative entity exempted from this restriction:
(1) Cooperative League of Puerto Rico;
(2) every cooperative insurer, duly organized and authorized under §§ 3401—3423 of Title 26, part of the Insurance Code of Puerto Rico;
(3) the Cooperative Bank of Puerto Rico;
(4) every entity organized and registered pursuant to the provisions of Act No. 50 of August 4, 1994, known as the “General Cooperative Unions Act of Puerto Rico”, and
(5) every entity organized and registered pursuant to the provisions of this chapter, including non-profit corporations, one hundred percent (100%) controlled by them, and the affiliates, subsidiaries, and cooperative enterprises contemplated in § 1362e of this title.
(b) Any person who violates the provisions of this Section shall incur a felony, and upon conviction thereof, shall be sanctioned with a penalty of imprisonment for a fixed term of one (1) year or a maximum fine of one thousand dollars ($1,000), or both penalties, at the discretion of the court.
History —Oct. 28, 2002, No. 255, § 9.01.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369a - Restrictions to granting of loans to profitable juridical entities

Cooperatives shall not grant loans to lucrative juridical entities, corporations, partnerships, associations or private organizations, except in the case of business loans to entities that are small and medium-size businesses controlled by natural persons that are members of the cooperative, or in the case of projects, economic sectors or activities of high public interest, or that have the potential of generating new jobs. The Corporation is empowered to direct, through administrative decision or by regulations, the eligibility of small and medium-size business persons, such loans, projects, economic sectors or activities, pursuant to the provisions of this section. Cooperatives may grant and offer to these entities all those loans and services permitted by this chapter, including those described in §§ 1362a and 1362c of this title, without the limitations provided in § 1362b of this title.
Any cooperative that violates what is established in this section or in the regulations adopted thereby, shall be subject to the imposition by the Corporation, of an administrative fine not greater than five thousand dollars ($5,000), for any violation of this section.
History —Oct. 28, 2002, No. 255, § 9.02.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369b - Administrative fines

(a) The Corporation may impose an administrative fine of not more than five thousand dollars ($5,000), on any cooperative that incurs violations of the provisions of this chapter or the regulations adopted thereby, or that violates the resolutions or orders, and on any member of the boards of directors, or any executive official or employee thereof, that is responsible for said violation.
(b) The Corporation may impose administrative fines of up to one hundred dollars ($100) a day on any cooperative that fails to render any report required by the Corporation.
History —Oct. 28, 2002, No. 255, § 9.03.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369c - Liability for violations

It shall be understood that any violation of the provisions of this chapter incurred by a cooperative, is also committed by the official or employee who is liable according to his/her obligations, pursuant to the regulations, policies, and procedures of the cooperative. If no such liability has been expressly assigned to any official or employee of a cooperative through regulations, policies and procedures, all the members of the Board of Directors, and of the committees of the cooperative shall be liable, unless said member proves that he/she had no knowledge of it, or that he/she made every reasonable effort, and took measures to prevent that the violation in question would be incurred. Continuing to commit any act or omission that constitutes a violation of the provisions of this chapter shall be deemed to be a new offense for each subsequent week that the commission or omission in question persists.
History —Oct. 28, 2002, No. 255, § 9.04.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369e - Acts against the funds

Any Board member, committee member, official, employee or agent of a cooperative, and any other person in charge of receiving, keeping, transferring, or disbursing cooperative funds, who performs one or more of the following acts, shall be punished with a penalty of imprisonment for a fixed term of eight (8) years:
(a) Appropriates them, in whole or in part, without legal authority, for his/her own benefit or that of another person;
(b) lends them, in whole or in part, or speculates with them or uses them for any purpose not authorized by this chapter;
(c) does not keep them in his/her power until they are disbursed or delivered as authorized by law;
(d) illegally deposits all or part of them in any cooperative, bank or financial institution, or in the power of another person;
(e) keeps any false account or makes a false entry of said funds, or that is related thereto;
(f) alters, forges, hides, destroys or strikes out any account or document that is related thereto;
(g) refuses or fails to pay on presentation, any draft, order of payment, or warrant issued by competent authority against the funds in his/her power;
(h) fails to transfer the same, in those cases that said transfer is demanded, by law or regulations;
(i) fails or refuses to deliver any amount of money to any official or other person authorized by law to receive it, to whom he/she is legally bound to deliver it;
(j) exchanges or converts the funds into cash, paper or other current coin or negotiable instrument, without legal authority for it, or
(k) neglects or fails to keep or disburse the funds in the form established in this chapter or its regulations.
Any person who is not a member of the Board, of the committees, or an executive official, employee or agent of a cooperative, that is guilty of one or more of the acts prohibited in this section, regardless of whether or not personal lucre was obtained, shall be punished with the penalty provided herein.
History —Oct. 28, 2002, No. 255, § 9.06.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369f - Injurious information

Any person who knowingly and maliciously, makes, circulates, or transmits any statement, rumor or written, printed or spoken indication, that directly or indirectly results in the discredit of the institution, its directors, or its executive officials, or that affects the solvency or liquidity of a savings and credit cooperative, or that counsels, assists, procures or induces another person or entity, to originate, transmit, or circulate any statement or rumor of such nature, shall be guilty of a felony, and upon conviction thereof, shall be sanctioned with a fine of not less than one thousand dollars ($1,000), or imprisonment for a term of not more than five (5) years, or both penalties, at the discretion of the court. Provided, That the true verbal or written statements issued for the record by the members of the cooperative, in the course of the regular and special assemblies of the institution, shall not be deemed to violate the provisions of this section.
History —Oct. 28, 2002, No. 255, § 9.07.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369g - Special prosecutor

In every case that the Corporation has grounds to believe that any partner, member of the boards of directors, executive official of a cooperative or any other person has incurred any act that constitutes an offense pursuant to this chapter, or Act No. 15 of July 22, 1974, known as the Penal Code of Puerto Rico, or any other law that applies to cooperatives, shall request the Secretary of Justice to direct that a special investigation be carried out for such purpose. The Secretary of Justice shall designate the prosecutor who shall be in charge of said investigation within five (5) days following receipt of the request.
History —Oct. 28, 2002, No. 255, § 9.08.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter IX - Prohibitions and Penalties (§§ 1369 — 1369h) › § 1369h - Investigation fund

The administrative fines collected by virtue of this chapter shall be covered into the general fund of the Corporation.
History —Oct. 28, 2002, No. 255, § 9.09.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter X - Fiduciary Duties and Conflicts of Interest (§ 1370) › § 1370 - Duties

(a) The members of the Boards of Directors of a cooperative shall be subject to a fiduciary duty towards the cooperative. This fiduciary duty includes the duty of diligence and the duty of loyalty to the cooperative, as well as the duty to watch over and care as a good paterfamilias of the property and operations of the cooperative, as well as the assets, shares and deposits of the members and depositors of the institution.
(b) The members of the Board of Directors, delegates, and employees of a cooperative shall not incur direct or indirect conflicts of interest with regard to the cooperative. Every member of the Board of Directors, delegate and employee of the cooperative shall be subject to the following general ethical constraints:
(1) Shall not solicit or accept from any person, directly or indirectly, for him/herself, or for any member of the family unit, nor for any other person, business or entity, any assets of economic value, including discounts, tips, gifts, loans, favors, or services in exchange for influencing the actions of the member of the Board or a committee, delegate, or the employee, who favors that, or any other person.
(2) Shall not reveal or use information or documents acquired during the performance of his/her office or employment for purposes alien thereto. Every member of a board of directors, delegate or employee shall maintain in strict confidence those matters related to his/her function or employment, as applicable, unless he/she receives a request that requires the divulgation of a matter, and that it is permitted by competent authority.
(3) Shall not obtain personal lucre by taking advantage of the position he/she holds.
History —Oct. 28, 2002, No. 255, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter XI - Final Provisions (§§ 1371 — 1371b) › § 1371 - [Pacts, agreements, contracts and existing regulations]

[No provision of this chapter shall be understood to modify, alter or invalidate any agreement, pact or contract in effect at the date of effectiveness of this act, that has been granted under Act Jan. 15, 1973, No. 1, as amended, known as the “Cooperative Savings and Loan Act”, repealed by Act Jan. 15, 1990, No. 6, as amended, or under said Act No. 6, herein repealed.]
The regulations, orders, agreements, administrative procedures, contracts and other actions of the Corporation and the Commissioner of Financial Institutions initiated, approved or adopted prior to the approval of this act shall continue to be in effect until they are modified or repealed by the Corporation pursuant to the provisions of this chapter.
History —Oct. 28, 2002, No. 255, § 11.01.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter XI - Final Provisions (§§ 1371 — 1371b) › § 1371a - Procedures initiated prior to approval

Every procedure for the organization of a cooperative and any action, claim or pending action, before the Commissioner of Financial Institutions or before the Corporation or before any Court at the date of approval of this act, initiated pursuant to the provisions of Act No. 1 of June 15, 1973, as amended, or pursuant to the provisions of Act No. 6 of January 15, 1990, as amended, shall continue to be handled until its determination, or final and binding resolution, pursuant to the laws and regulations in effect as of the date said procedures, actions or resolutions have been presented or initiated.
History —Oct. 28, 2002, No. 255, § 11.02.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter XI - Final Provisions (§§ 1371 — 1371b) › § 1371b - Other applicable laws

Act No. 50 of August 4, 1994, known as the “General Cooperative Associations of Puerto Rico Act”, as well as any successor statute of said Act shall be supplementary to this chapter and its provisions, as well as the regulations adopted by virtue thereof shall be applicable to the savings and credit cooperatives in the measure that they are not in conflict with the provisions of this chapter.
History —Oct. 28, 2002, No. 255, § 11.03.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382 - Special Maintenance Fund—Definitions

For the purposes of §§ 1382 et seq. of this title, the following terms shall have the meaning indicated hereinbelow, unless another meaning is clearly construed from the context:
(a) Committee. — Shall mean the “Interagency Committee for the Evaluation and Approval of Special Maintenance Proposals” created by §§ 1382 et seq. of this title.
(b) Fund. — Shall mean the “Special Maintenance Fund” created by §§ 1382 et seq. of this title to defray the special maintenance needs approved by the Committee.
(c) Special maintenance needs. — Shall mean those sudden or unforeseen, non-recurrent maintenance needs that will allow the extension of the useful life of the facilities, and those maintenance needs existing on the effective date of this act, which due to their seriousness and nature, if left unattended or unsolved immediately, threaten to make useless the infrastructure work which needs said maintenance, or that severely affect the services for which the facility was constructed, including, without it being understood as a limitation, those renewals, replacements and improvements directed to preserve or extend the useful life of the asset.
History —Aug. 14, 1991, No. 66, p. 326, § 2, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382a - Special Maintenance Fund—Creation

A special fund denominated “Special Maintenance Fund”, hereinafter referred to as the “Fund”, is hereby created in the books of the Secretary of the Treasury, which shall be used by the Committee for the Evaluation and Approval of Special Maintenance Proposals created by §§ 1382 et seq. of this title. The Fund shall be nourished with resources procured pursuant to the provisions of § 1382b of this title.
The moneys of the Fund shall only be disbursed and used for those special maintenance needs that meet the requirements defined in § 1382 of this title, and the regulations promulgated by the Committee which are unanimously approved by the Interagency Committee for the Evaluation and Approval of Special Maintenance Proposals established by §§ 1382 et seq. of this title.
History —Aug. 14, 1991, No. 66, p. 326, § 3, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382b - Special Maintenance Fund—Capitalization

The Fund shall be capitalized by one or more of the following mechanisms:
(a) Five percent (5%) contribution of the annual bond issue for the Commonwealth of Puerto Rico Capital Improvements Program, except for fiscal year 1995-96.
(b) Legislative appropriations from the General Fund.
(c) Contributions from public corporations or any other agency or instrumentality of the Commonwealth of Puerto Rico that are legally empowered to make said contributions.
(d) Donations from any person or entity, that may establish that the contribution be used in specific projects that have been previously evaluated and approved by the Interagency Committee for the Evaluation and Approval of Special Maintenance Proposals as special maintenance needs.
These contributions shall be covered into the Fund without any specific fiscal year, and shall be kept in an account separate from any other Commonwealth funds.
The Department of the Treasury, as custodian of the Fund, may, through the Government Development Bank for Puerto Rico, invest the moneys of the Fund in assets that can be easily liquidated, as a supplementary way to increment the moneys of the Fund.
History —Aug. 14, 1991, No. 66, p. 326, § 4; Sept. 10, 1995, No. 210, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382c - Special Maintenance Fund—Interagency Committee for the Evaluation and Approval of Special Maintenance Proposals

An Interagency Committee for the Evaluation and Approval of Special Maintenance Proposals, is hereby created, which shall be composed of the Secretary of State, the Director of the Office of the Management and Budget and the Chairman of the Planning Board. The Secretary of State shall be the Chairman of the Committee.
The Committee shall evaluate and allow or disallow the proposals of the departments, agencies and instrumentalities of the Commonwealth of Puerto Rico that wish to use the Fund’s resources to carry out works which meet the requirements for special maintenance needs established by §§ 1382 et seq. of this title.
The Committee may adopt those regulations needed to implement §§ 1382 et seq. of this title, including the requirements, procedures and formalities to be observed by those public entities that submit proposals to the Committee.
The proposals submitted before the Committee by departments, agencies and instrumentalities of the Commonwealth of Puerto Rico as well as the donations from persons and entities and any other condition of specific use that are included with the same, shall be deemed to be public documents.
After evaluating the proposal as a whole, the Committee shall proceed to approve It unanimously as a special maintenance need that meets with the purposes of §§ 1382 et seq. of this title, and that qualifies to receive moneys from the Fund, and shall allow the disbursement of the moneys approved, or shall disallow it as a proposal that does not meet the purposes and requirements of §§ 1382 et seq. of this title.
History —Aug. 14, 1991, No. 66, p. 326, § 5, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382d - Special Maintenance Fund—Reports to the Legislature

The Governor, in addition to the Budget Report and the Capital Improvements Program, shall submit an annual report to the Legislature itemizing all maintenance needs handled by the Fund, including the final cost of each.
History —Aug. 14, 1991, No. 66, p. 326, § 6, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382e - Special Maintenance Fund—Initial capitalization

For fiscal year 1991-92 and as initial capitalization of the Special Maintenance Fund, the following resources shall be available:
(a) From the General Fund of the Commonwealth of Puerto Rico $1,000,000 (b) Five percent (5%) of the Bond Issue for Capital Improvements of the Commonwealth of Puerto Rico for Fiscal Year 1991-92 $13,750,000
Of the total of the above funds, $6,993,639 were consigned under the custody of the Office of the Management and Budget until the Committee is constituted and claims its joining the Fund created herein. The remaining $7,756,361 are appropriated as provided in § 1382f of this title.
History —Aug. 14, 1991, No. 66, p. 326, § 7, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 87 - Permanent Infrastructure Fund (§§ 1380 — 1382f) › § 1382f - Special Maintenance Fund—Appropriation for projects during Fiscal Year 1991-92

In view of the need to deal immediately with certain infrastructure maintenance needs without having to complete the procedure established in §§ 1382 et seq. of this title, the Committee is hereby authorized to make the disbursements described below:
(a) To repair the Melania dam, in Guayama, owned by the Commonwealth of Puerto Rico which is in danger of collapsing $2,500,000 (b) To repair the electric systems of the Health Services and Facilities Administration Hospitals $3,900,000 (c) To complete the cost of improvements to the Water Reserve Systems owned by the Health Services and Facilities Administration $1,356,361
History —Aug. 14, 1991, No. 66, p. 326, § 8, retroactive to July 1, 1991.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART IV - Transfer Of Funds (§§ 1401 — 1407) › Chapter 91 - Transfer of Funds Abroad (§§ 1401 — 1407) › § 1401 - Short title

This chapter shall be known as “Act on Transfers of Funds Abroad”.
History —July 23, 1974, No. 131, Part 1, p. 590, § 1, eff. 60 days after July 23, 1974.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART IV - Transfer Of Funds (§§ 1401 — 1407) › Chapter 91 - Transfer of Funds Abroad (§§ 1401 — 1407) › § 1404 - Personal transportation; exemptions

(a) Any person who transports or causes the transport of money or bearer securities in excess of five thousand dollars ($5,000).
(1) From a place in the Commonwealth of Puerto Rico to or through a place in a foreign country; or
(2) to a place in the Commonwealth of Puerto Rico from or through a place in a foreign country; or
(3) that receives money or bearer securities in excess of five thousand dollars ($5,000) upon arrival in the Commonwealth of Puerto Rico from or through any foreign country, shall file a report with the Secretary of the Treasury with the following information:
(A) The legal capacity in which the person filing the report is acting with respect to the money or bearer securities transported.
(B) The origin, destination, and route of the money or bearer securities.
(C) The names of the transmittor and recipient of the money or bearer securities.
(D) The amount and kind of money or bearer securities.
(b) The provisions of this section shall not apply to a common carrier of passengers when a passenger possesses money or bearer securities or to a common carrier of goods if the shipper does not declare the money or bearer securities.
History —July 23, 1974, No. 131, Part 1, p. 590, § 4, eff. 60 days after July 23, 1974; Dec. 26, 2013, No. 164, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART IV - Transfer Of Funds (§§ 1401 — 1407) › Chapter 91 - Transfer of Funds Abroad (§§ 1401 — 1407) › § 1405 - Regulation

The Secretary shall prescribe by regulation such measures as he may deem necessary and suitable to fulfill the purposes of this chapter.
History —July 23, 1974, No. 131, Part 1, p. 590, § 5, eff. 60 days after July 23, 1974.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART IV - Transfer Of Funds (§§ 1401 — 1407) › Chapter 91 - Transfer of Funds Abroad (§§ 1401 — 1407) › § 1406 - Penalties

The Secretary is hereby authorized to impose and collect administrative fines in a sum which shall not exceed five thousand dollars ($5,000) for any violation of this chapter or the provisions contained in the regulations promulgated thereunder, except as otherwise provided in said statutes. This fine may be imposed whether any other penalty is provided in this chapter or in any other special chapter.
History —July 23, 1974, No. 131, Part 1, p. 590, § 6, eff. 60 days after July 23, 1974; Dec. 26, 2013, No. 164, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART IV - Transfer Of Funds (§§ 1401 — 1407) › Chapter 91 - Transfer of Funds Abroad (§§ 1401 — 1407) › § 1407 - Judicial review

Any finding of the Secretary grounded on this chapter or on its regulations may be reviewable by certiorari upon petition filed by the aggrieved party in the Court of First Instance, San Juan Part, within 30 days from the date of receipt of the notice of said finding.
History —July 23, 1974, No. 131, Part 1, p. 590, § 7, eff. 60 days after July 23, 1974.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2001 - Short title

This chapter shall be known as the “Financial Institutions Commissioner’s Office Act”.
History —Oct. 11, 1985, No. 4, p. 857, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2002 - Creation

The Office of the Commissioner of Financial Institutions is hereby created.
History —Oct. 11, 1985, No. 4, p. 857, § 2; Sept. 10, 2009, No. 95, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2003 - Purpose

The Financial Institutions Commissioner’s Office shall be charged with the main responsibility of controlling and supervising the financial institutions that operate or do business in the Commonwealth of Puerto Rico, among its other functions provided in this chapter.
The Office of the Commissioner of Financial Institutions shall be deemed as an agency of public law and order for the sole purpose that it may compile and verify information that shall be obtained from and that shall be made available by the traditional agencies of public law and order of the Government of Puerto Rico on the criminal record of those persons of whom there is a need to evaluate said record for the discharge of the duties imposed by this chapter, and other acts and regulations. In case that said information is in custody of state, federal or foreign agencies of public law and order, the Office of the Commissioner of Financial Institutions shall also be recognized as such by the Government of Puerto Rico before said agencies, so that the information may be requested directly from the body in question. The information obtained, through the inherent power herein granted shall be given by the Office of the Commissioner of Financial Institutions that degree of confidentiality given to said information by the investigative and public law and order agency that has furnished the same.
History —Oct. 11, 1985, No. 4, p. 857, § 3; Oct. 23, 1999, No. 319, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2005 - Direction

(a) Commissioner of Financial Institutions. — The Office of the Commissioner shall be under the direction of a Commissioner, who shall be appointed by the Governor with the advice and consent of the Senate of Puerto Rico; the Commissioner shall answer directly to the Governor.
In the performance of his functions, the Commissioner shall answer directly to the Secretary of the Treasury.
The Commissioner may avail himself of the benefits of §§ 761 et seq. of Title 3, which establishes the Puerto Rico Government Employees Retirement System.
(b) Competence of the Commissioner. — The Commissioner shall be a person of unblemished character and reputation, and recognized competence in financial matters.
(c) Commissioner’s successor. — In the event the Office of the Commissioner should become vacant, the successor shall be appointed as provided in subsection (a) of this section.
History —Oct. 11, 1985, No. 4, p. 857, § 5; Sept. 10, 2009, No. 95, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2006 - Personnel

(a) Deputy Commissioner. — The Commissioner shall appoint a Deputy Commissioner and one or more Assistant Commissioners of established moral repute, with experience in and knowledge of financial matters deemed necessary to best comply with the purposes of the Office of the Commissioner. In case of illness, disability, temporary absence, or when for any other cause the office of the Commissioner should become vacant, the Deputy Commissioner shall assume all his/her functions, duties and powers until his/her successor is designated and takes office.
(b) Commissioner and Deputy Commissioner’s salary. — The Commissioner and the Deputy Commissioner shall earn the annual salary fixed by the Governor according to the standards that govern positions of the same or similar level in the Government of Puerto Rico.
(c) Every official and employee of the Office of the Commissioner, except for the Commissioner, the Deputy Commissioner, Assistants, and Assistant Commissioners, who shall serve as trust employees, shall be career employees. Any person who, prior to his/her service as Commissioner, Deputy Commissioner, Assistant or Assistant Commissioner, was a regular career employee shall have the right to be reinstated in a position equal or similar to that which he/she held in the career service when he/she was appointed to the trust position.
The Commissioner may fix for any personnel that must have special competence and knowledge for the investigation of financial institutions a salary higher than that earned by personnel on an equal or similar level in other government agencies.
(d) The Commissioner may delegate any of his faculties, duties and prerogatives, except the power to regulate, on any official or employee of the Office of the Commissioner.
(e) All officials and employees who, in the performance of their functions, intervene in any way or have custody of money, securities or any public property, shall be covered by a bond as determined by the Commissioner, which bond shall be governed by §§ 283—283p of Title 3.
History —Oct. 11, 1985, No. 4, p. 857, § 6; Sept. 10, 2009, No. 95, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2009 - Financing Board—Functions

The Board shall be the legal successor of the Interest Rates and Financing Fees Regulating Board, created by §§ 998 et seq. of Title 10. As such, it shall be responsible for fixing, regulating, raising or lowering, by regulations and for the necessary term, the interest rates and/or maximum fees applicable to certain financial transactions within the framework of any sector, line or economic activity in the country not covered by special statutes. The Financing Board shall also serve as advisory body to the Office of the Commissioner for the purpose of contributing to the orderly development of the financial institutions, and to propitiate and recommend measures for the creating and maintenance of favorable credit and financing conditions for the economic stability and growth of the country.
The Financing Board shall also advise the Commissioner on the compliance of the public policy established by this chapter.
History —Oct. 11, 1985, No. 4, p. 857, § 9.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VI - Control And Supervision (§§ 2001 — 2109) › Chapter 131 - Office of the Financial Institutions Commissioner (§§ 2001 — 2021) › § 2009b - Regulations

When a regulation is approved, amended or repealed by the Financing Board, said regulation, amendment or repeal shall comply with the provisions of §§ 2101 et seq. of Title 3.
The provisions of the regulations approved by virtue of the provisions of § 2008 of this title, shall not be applicable to contracts executed nor to obligations made prior to the effective date of the regulations. Every contract shall be governed by the provisions of the regulations in effect on the date of formalizing the contact, even when said regulation is subsequently amended or repealed.
History —Oct. 11, 1985, No. 4, p. 857, added as § 9B on Oct. 23, 1999, No. 319, § 4.