2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART II - Economic Development (§§ 231-241 — 695i) › Chapter 30 - Investment and Cooperative Development Fund (§§ 481 — 494) › § 487 - Project investment

(a) In complying with its main mission of promoting and developing new cooperative enterprises, the Fund shall assume an active role in the design, gestation, organization, and capitalization of cooperative enterprises, for which purposes, the Fund may conduct any pertinent studies and analyses. In addition to investment in projects bred by the Fund itself, the Fund may invest in projects proposed by third parties insofar as these are consistent with the policies that the Board of Directors of the Fund may adopt. Such proposals by third parties shall establish the kind and location of the eligible cooperative enterprise and include any other pertinent information and data as requested by the Fund to adequately evaluate the proposal. The Fund shall require all the information it deems pertinent from the applicants on the eligible cooperative enterprise proposal, the experience of the persons involved, history, past and present financial situation, record of service, and the integrity and capabilities of the management team of the enterprise, the way in which the project conforms [to] Fund criteria and requirements, and any other factors deemed relevant or convenient to guarantee the accomplishment of the purposes of this section.
(b) In the determination as to making an investment in any eligible cooperative enterprise under the provisions of this chapter, the Fund shall be guided by, and shall observe the following minimum criteria and requirements; Provided, That the determination of the Fund, regarding its compliance with such criteria and requirement shall be final and binding:
(1) Pursuant to its mission, investment agreements shall prioritize capital investment over the granting of credit and see that cooperative enterprise has the liquid resources necessary for its early stages. The Fund shall ascertain that the cooperative enterprise has the appropriate managerial capabilities, for which purpose, the Fund may provide or procure technical and management assistance. Investments are to be made in eligible cooperative enterprises that have appropriate business plans that allow for a reasonable determination of economic and financial viability, even when showing any risk profile and that are financially accountable and willing to meet their obligations under the investment agreement, including the obligation to make payments in such amounts and on such dates as required, to operate and maintain the operations of the enterprise on its own account and expense, to pay the costs incurred by the Fund in relation to its investment in the enterprise, to accomplish the purposes of this chapter, and to meet any other responsibilities that may be imposed under the terms of the investment agreement.
(2) The appropriate allowances shall be made to recover the investment and to create and maintain the reserves required therefore, if any, that the Fund may determine and to pay the costs incurred by the Fund with regard to the eligible cooperative enterprise investment. Investment recovery terms shall be reasonable and consubstantial with terms corresponding to a medium- or long-term capital investment and shall not impose undue restrictions on the cooperative enterprise’s viability or successful operations.
(3) In every case it is required that the Board determines that the project is in agreement with the best development of the cooperative movement.
History —Aug. 18, 2002, No. 198, § 9; Aug. 10, 2008, No. 247, § 26, eff. Feb. 1, 2009.