reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6621 - Establishment of associations

Two-thirds (⅔) of all the property owners of an area who wish to develop an improvement project therein may voluntarily establish themselves as an owners’ association under the provisions of this chapter through written consent to such effect. Said associations shall be organized as nonprofit corporations according to the provisions of Act No. 144 of August 10, 1995, as amended, known as the “General Corporations Law of 1995”, or any subsequent law, and shall also comply with the provisions of this chapter and with the applicable municipal ordinances. Except when in conflict with the provisions of this chapter, any regulations promulgated pursuant to the provisions herein, or any applicable municipal ordinance, the association shall have all the powers, privileges, and obligations of a nonprofit corporation created pursuant to the “General Corporations Law of 1995”, or any subsequent law. However, any activity not expressly included in this chapter in which any association participates, either directly or indirectly, including, but not limited to lending money to any natural or juridical person, or creating or acquiring a subsidiary or affiliate corporation, shall be previously approved by the company, according to the rules and regulations it may deem necessary to promulgate for such purposes. The term of existence of these associations, which may be indefinite or fixed for the duration of the improvement project or projects as agreed to by the members of such associations, shall be determined in their certificate of incorporation. The certificate of incorporation shall establish the specific purposes for which the association is established. Once incorporated, the association shall meet all tax law requirements in order to enjoy the benefits they provide for nonprofit entities. The provisions of this chapter do not prevent a developer from establishing an owners’ association, following the applicable procedures set forth herein, before the sale of the properties within the tourism improvement district by which the buyers of said district properties shall have to abide. The district’s developer shall retain, in his/her discretion, the control of the association, as provided in the municipal ordinance authorizing the establishment of the tourism improvement district, provided that not more than ninety-five percent (95%) of the properties planned for the district have been handed over to their owners.
History —Aug. 8, 1998, No. 207, § 2.001; Dec. 16, 2009, No. 171, § 2, eff. 30 days after Dec. 16, 2009.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6622 - Board of Directors

The association shall select a Board of Directors of at least three (3) persons from among all its members duly assembled, except as set forth in § 6655 of this title, in which case the Board of Directors may be constituted by less than three (3) persons.
The Board of Directors shall be responsible for making all administrative decisions related to the operation of the association and ensuring that the agreements of the general assembly are kept. The agreement of the Board of Directors shall be adopted by majority vote of all its members entitled to vote, unless the regulations of the association provide otherwise. The Board shall meet at least once every three (3) months through a notice to such effects signed by the Chairman.
The Board of Directors, on behalf of the association, may directly or indirectly contract the services needed to establish the improvement projects, chargeable to the funds appropriated for their development. The operating costs incurred for the management of the works and programs shall not exceed the amount established by the Company through regulations to such effects. Neither the association nor its Board of Directors may appropriate funds for donations to civic, political, religious or labor union campaigns or for lobbying. Travel or representation expenses and any other expense of a similar nature shall be regulated by the Company through the regulations it deems should be promulgated for such purpose.
History —Aug. 8, 1998, No. 207, § 2.002, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6623 - Association meetings

The association shall meet at least once a year in a general assembly to elect its Board of Directors and to review both the annual accomplishment report and the financial report, which shall be certified by a certified public accountant. Any other matters that the Board of Directors or thirty percent (30%) of the members of the association determines that should be brought to the attention of the general assembly may also be considered through a written petition addressed to the Board of Directors. Attendance by thirty percent (30%) of the members of the association plus the developer shall constitute a quorum to hold the assembly. A member of the association may be allowed to delegate his/her vote to another member by proxy, specifying how he/she shall vote on any matter determined to be discussed during the assembly. Agreements shall be adopted through a majority vote unless this chapter provides a special requirement to adopt certain agreements.
The association may hold as many special assemblies of its members that the Board of Directors deems necessary. However, the Board of Directors is duty bound to call a special assembly, provided it is requested by thirty percent (30%) of the total number of members of the association.
The Board shall notify all members of the association, by certified mail with acknowledgement of receipt, or by messenger, of the date, time and place that the general assembly is to be held. It shall likewise inform all members of the association, in writing, of the decisions adopted and the reports presented in the assembly.
History —Aug. 8, 1998, No. 207, § 2.003; Dec. 16, 2009, No. 171, § 3, eff. 30 days after Dec. 16, 2009.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6624 - Adoption of decisions; minutes and resolutions

Decisions on those matters listed below shall be reached at a general assembly duly-summoned through the affirmative vote of the majority of the members of the association present:
(a) The monthly or periodic fees to defray the operating expenses of the association.
(b) The plans for the works, projects, programs and services needed in the district and their follow-up.
(c) The cost of any improvement project and the source of the resources to carry it out.
(d) The approval of loans to be underwritten by the association for the construction of improvement projects.
(e) The mechanisms to establish special voluntary fees or contributions to carry out specific works or projects.
(f) The formulas to liquidate unused funds upon termination of any improvement project, subject to the provisions of § 6723 of this title in the event of the dissolution or liquidation of an association.
(g) The intention to leave an improvement project unfinished before it has been completed, subject to the provisions of § 6657 of this title.
(h) The approval of a resolution authorizing the association to issue bonds for financing or refinancing improvement projects in the district.
Any resolution adopted at a general or special assembly must be documented in the minutes and be included in a book of minutes. The minutes must specify the date, place and time of the meeting, the means through which the meeting was summoned, the number of members present, the matters proposed, the text of the resolutions adopted and the votes for or against them.
History —Aug. 8, 1998, No. 207, § 2.004, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6625 - Special requirements for the adoption of certain decisions

The following decisions shall also be made at a general assembly of the association, although with the affirmative vote of at least seventy-five percent (75%) of the total number of its members:
(a) The petition to the municipality to impose imposts charged benefits or profits on all real property located in the tourism improvement district, which shall be in addition to any tax imposed by law.
(b) The improvements project or projects to be defrayed with the proceeds of any imposts charged for benefits or profits.
(c) The amount of the imposts charged for benefits or profits and the term for which they shall be imposed.
(d) The formula to determine the imposts charged for benefits or profits received to which each property located within the tourism improvement district shall be subject.
When there are not enough members of the association present to comply with the requirements of this section, and the favorable vote of the absent members would be sufficient to approve the abovementioned decisions, those who failed to attend after having been duly notified shall be informed in detail by certified mail, of the decision adopted by the majority of the members present. Said members shall have a term of thirty (30) days, from the date of said notice, to state, in writing, their disapproval of the decision adopted. The vote of those members who fail to state their disapproval within the term provided, shall be counted as favoring the decision. Said decision shall be binding as soon as the approval of seventy-five percent (75%) of the total number of members is obtained.
History —Aug. 8, 1998, No. 207, § 2.005, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6626 - Voluntary fees or contributions

The fees or contributions collected to defray improvement projects that are not approved according to the provisions of § 6625 of this title, must be approved by a majority of the members of the association as required in this chapter, and shall be voluntary. The improvement projects to be financed with these voluntary fees or contributions may be of general benefit to the entire district or of specific benefit to the members who have assumed said responsibility.
The members of the association who agree to assume the payment of voluntary fees or contributions approved by the association, must sign a sworn document to such effect. Said voluntary fees or contributions shall constitute a lawful lien on the real property of said members in the same manner and of the same rank as the lien provided and described in § 6653 of this title. It shall be understood that any person who acquires or otherwise receives the property subject to said lien personally assumes the obligation to pay which secures the same. The association shall draw up acontract form for such purposes containing all the information it deems necessary to be included in the document.
The members of the association who have voluntarily assumed the payment of the fees or contributions approved by it, shall contribute, in the agreed proportion, to the cost of the improvement projects developed in the district which are financed through said voluntary fees and contributions, as well as to the administrative expenses of the association related to said improvement projects. Said members shall not refuse to contribute to said expenses should they waive the use and enjoyment of the benefits generated by the decisions of the association, or have abandoned the district.
History —Aug. 8, 1998, No. 207, § 2.006, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6627 - Common expenses

The proportional amount to be contributed by each titleholder for the common expenses shall be determined, fixed and imposed at a general assembly of the association. The contribution or fees to cover the common expenses shall become due and be payable according to the agreements of the association adopted pursuant to the provisions of this chapter.
History —Aug. 8, 1998, No. 207, § 2.007, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter II - Establishing of Owners Associations and the District Matters Administration (§§ 6621 — 6628) › § 6628 - Rules for management of funds; Company regulations

Every association must comply with the following norms and provisions:
(a) Maintain a strict accounting system regarding the funds received, their uses and surplus, according to generally accepted public accounting practices.
(b) Deposit the moneys in a bank account within the term provided by the Company through regulations.
(c) Designate an official who will be responsible for receiving, accounting, and disbursing moneys, as well for saving all receipts and related documents needed to prepare and justify the financial reports that must be submitted to the general assembly.
(d) Make disbursements only by check, for the payment of purchase orders, invoices, payrolls, services or other necessary expenses directly related to the activities of the association, except in those cases in which something else is required by law, or for those matters authorized by the Company through regulations.
(e) No checks shall be issued to the bearer, nor shall cash payments chargeable to the funds of the association be made.
(f) Keep minutes of the general assemblies and the meetings of the Board of Directors, specifically stating, among other things, the decisions or resolutions approved regarding the use and disposition of the funds of the association.
(g) Conserve up to date and safely filed checks, invoices, purchase and service orders, payrolls, records, minutes and any other documents related to the funds of the association for the term established in the bylaws of the association, which shall not be less than five (5) years.
In the case of those associations constituted for a definite term, and in every case of their dissolution, the documents related to the funds of the association, such as disbursements, vouchers and any other such documents of a fiscal nature or related to the use of the same, shall be delivered to the municipality or municipalities with jurisdiction for their preservation and custody not later than thirty (30) days following the date that the term of existence of the association concluded or the dissolution of the association in question is decreed. In the case of a tourism improvement district located in more than one municipality, said documents shall be delivered to the municipality containing the largest portion of the district and a copy of said documents shall be delivered to the remaining municipalities.
The Company shall provide, through regulations, any other rules it deems are needed for the management of the funds of the associations taking into consideration the provisions of this section.
History —Aug. 8, 1998, No. 207, § 2.008, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6651 - Determination of the Company regarding the tourism improvement districts

Any petitioner wishing to establish a tourism improvement district shall file a petition with the Company requesting its determination as to the proposed tourism improvement district shall promote and substantially strengthen the Puerto Rico tourism industry.
The petition must contain:
(a) The name of the proposed tourism improvement district;
(b) The consent of two-thirds (⅔) of the owners of real property located in the proposed tourism improvement district;
(c) a detailed description of the proposed improvement project or projects and the reasons that make it necessary and which justify the creation of the district;
(d) a detailed report as to how the establishing of the tourism improvement district and the development or implementation of the improvement project shall promote and substantially strengthen the tourist industry in Puerto Rico;
(e) the formula to be used to determine the amount of the imposts charged for benefits or profits to be imposed on each property located within the tourism improvement district, and
(f) any other information the Company may require from the petitioner which is reasonably related to the above.
The Company may:
(1) Deny the petition stating its reason for doing so;
(2) endorse the petition;
(3) suggest amendments to the petition, or
(4) set conditions for its approval within the term of sixty (60) days after the petition has been duly presented.
The Company shall establish, through regulations, the procedures and requirements it deems necessary to make such determinations. Should the Company accept the petition, the latter shall state whether the formula to calculate the imposts charged for benefits or profits is a fair mechanism to determine the specific benefit that each property within the tourism improvement district shall receive.
History —Aug. 8, 1998, No. 207, § 3.001; Dec. 16, 2009, No. 171, § 4, eff. 30 days after Dec. 16, 2009.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6654 - Date for the payment of imposts for profits; penalty for delay

The imposts for profits imposed pursuant to the terms of this chapter shall be payable annually to the association on the date provided by the latter in the notice issued annually for such purposes, in accordance with the provisions of § 6653 of this title. Said imposts for profits shall become delinquent if not paid within thirty (30) days following their due date. After the aforementioned thirty (30)-day term has elapsed, the collectors or authorized representatives of the association shall collect, in addition to said delinquent imposts for profits, and as part of these, the interest on their total amount calculated at the rate of ten percent (10%) per annum, as of the date fixed for their payment.
Said additional sum on account of interest shall be collected together with the principal of the imposts for profits that accrued the same, as well as demand for payment fees, if any. As soon as the imposts for profits become delinquent, the affected real property owner shall be notified to such effect by the association through certified mail. The owner of the affected real property shall have fifteen (15) days, from the date said notice of demand for payment is received, and to make such payment for delinquent imposts for profits, as well as any interest thus accrued.
If the payment due is not received and fifteen (15) days have elapsed, the association shall, upon previous notice through certified mail to the Municipal Revenues Collection Center and the municipality where the improvement district in question is located, proceed to immediately attach, through its agents, the real or personal property of the owner of the real property subject to payment of delinquent imposts for benefits in an amount sufficient to cover the payment of such imposts for profits, and shall notify such attachment to the affected real property owner through certified mail within ten (10) days of such attachment.
The owner of the real property may file a petition for review with the Court of First Instance of Puerto Rico, within a non-extendable thirty (30)-day term from the receipt of the notice of attachment if he/she believes that there has been an irregularity in the notice of the imposts for profits or the attachment initiated by the association.
Should the owner of the property fail to petition the aforementioned review, the association shall proceed to sell the attached property at public auction in order to collect the imposts for profits, including fees, costs, and interest. Said sale at auction shall take place as prescribed in §§ 5103 and 5104 of this title.
History —Aug. 8, 1998, No. 207, § 3.004; Dec. 16, 2009, No. 171, § 7, eff. 30 days after Dec. 16, 2009.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6655 - Associations established by an owner or owners of an improvement project; consent for the imposition of imposts for profits

The owner or owners of a parcel or parcels of land who wish to develop an improvement project on these may organize themselves as an association, request that the Company designate their improvement project or projects as a tourism improvement district, and file an improvement project proposal with the mayor pursuant to the provisions of this chapter, which shall include an authorization for the municipality to impose imposts for profits on all real property located in the tourism improvement district. In the event that, at the time an association is constituted, owners of real property located in the proposed improvement district already exist, the consent of two-thirds (⅔) of said owners shall be obtained. In the event that there are no such owners, but there are potential buyers who have already executed purchase commitment or option contracts, it shall be an essential condition to approve any petition for establishing a tourism improvement district, for the seller or sellers to notify said potential buyers, in writing, about the existence of or intention to establish a tourism improvement district and the imposition of imposts for profits before the purchase transaction. Once the buyer or potential buyer is notified in writing about the existence of the district and the imposts for profits, the subsequent purchase action shall be deemed as consent from the new owner to the establishment of the tourism improvement district and the imposts for profits. Provided, That if the potential buyer does not agree to the establishment of tourism improvement district and the imposts for profits, the seller or sellers may not impose any penalty whatsoever if the former opts for the termination of the purchase or option contract, insofar as such contracts were executed before the establishment of the district and the imposts for profits, and if such contracts included no reference or notice on the existence or the intention to establish such district and the imposts for profits before the purchase action.
History —Aug. 8, 1998, No. 207, § 3.005; Dec. 16, 2009, No. 171, § 8, eff. 30 days after Dec. 16, 2009.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6656 - Determination of the Company regarding the tourism improvement districts

The petition of an association for an improvement project may provide that any impost charged for benefits or profits on the real property located within a tourism improvement district, whose payment has not become due, be proportionally and automatically transferred, according to the formula established by the association to calculate the imposts charged for benefits or profits, as approved by the Company pursuant to the provisions of § 6651 of this title, to any segregated parcels (with or without the units constructed thereon) or in the case of property subject to the horizontal property regime, to the units as they become individualized.
History —Aug. 8, 1998, No. 207, § 3.006, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6657 - The right of title holders to be members of an association; impediment to stop the project

The owners of every unit of a condominium and the owners of segregated parcels of land shall be entitled to become members of the corresponding association after payment of the applicable fees. The articles of incorporation of the corresponding association may provide that, in the event that one or more of the title holders become members of the association, the improvement project to be financed with the imposts charged for benefits or profits, approved without the consent of the proponent owner or developer and the affirmative vote of the majority of the remaining members of the association, may not be stopped.
The Company shall determine, through regulations, all the rules it may deem necessary and proper to regulate the right to vote of the members of the associations established by the owner or owners of an improvement project pursuant to § 6655 of this title. Said rules may give special treatment to the right to vote of the owner or owners of the parcel or parcels of land where an improvement project is being developed, that is different from that given to the buyers of parcels or housing units located in the district established pursuant to § 6655 of this title.
History —Aug. 8, 1998, No. 207, § 3.007, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6658 - Procedure for improvement projects and imposts on benefits or profits in established tourism improvement districts

An association may petition a municipality to authorize the development of additional improvement project or projects within its tourism improvement district, and the imposition of imposts charged for benefits or profits to defray their cost; Provided, That the association must comply with the following requirements:
(a) File a petition with the Company requesting the determination of the Company as to the fact that the additional improvement project shall substantially foster and strengthen the tourist industry in Puerto Rico. The petition shall contain all the information required in subsections (c)–(f) of § 6651 of this title, and a certified copy of the resolution issued by the general assembly approving the improvement project and the imposition of the imposts on benefits or profits needed to defray the same, as provided in § 6625 of this title. The Company shall issue a decision pursuant to the provisions of said section.
(b) Present a petition to the municipality or municipalities where the tourism improvement district is located that contains the information required in § 6652 of this title. The municipality shall consider the petition pursuant to the provisions of this subchapter.
History —Aug. 8, 1998, No. 207, § 3.008, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter IV - Bond [Issuance] (§§ 6671 — 6675) › § 6672 - Refinancing bonds; redemption of outstanding bonds; sale and exchange of bonds

The associations are hereby authorized to issue refinancing bonds for the purpose of refinancing those bonds which are outstanding and in circulation at that time, and which have been issued under the provisions of this chapter, including the payment of any redemption premium related thereto and any interest accrued or to be accrued as of the date of redemption or maturity of said bonds, and should the associations may deem it advisable, for any of the purposes for which they may issue bonds. The issue of said bonds, their maturity and other details thereof, the rights of the holders of said bonds and the rights, duties and obligations of the associations with regard to said bonds, shall be governed by the provisions of this chapter related to the bond issue, provided said provisions are applicable.
The refinancing bonds issued under this section may be sold or exchanged for outstanding bonds issued under this chapter, and if sold, the proceeds of said sale may be used, in addition to any authorized purpose, for the purchase, redemption or payment of said outstanding bonds in circulation, and may be invested pending said application. The refinancing bonds may be issued, at the discretion of the corresponding association, at any time, on or before the date of maturity, or the date selected for the redemption of the bonds being refinanced.
History —Aug. 8, 1998, No. 207, § 4.002, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter IV - Bond [Issuance] (§§ 6671 — 6675) › § 6673 - Trust contract; trustee of the proceeds of the sale of the bonds

Any bonds issued under the provisions of this chapter may be secured, at the discretion of the associations, by a trust contract executed between the corresponding association and any bank or trust company described in the following paragraph, which may be a bank or trust company organized in or outside the Commonwealth of Puerto Rico. Any legal provision to the contrary, notwithstanding, said trust contract need not be executed through a notarized document for it to be deemed as a valid trust under the laws of the Commonwealth of Puerto Rico.
It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth of Puerto Rico, the United States of America or any state of the United States of America, to act as trustee of the proceeds of the bonds and the income or other moneys, and to grant those indemnity bonds or offer as security those assets required by the corresponding association. In addition to the above, the trust contract shall contain all those provisions which the association may deem to be reasonable and proper for the security of the bondholders.
History —Aug. 8, 1998, No. 207, § 4.003, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter IV - Bond [Issuance] (§§ 6671 — 6675) › § 6674 - Release from liability of the Commonwealth of Puerto Rico and the municipalities for the payment of the bonds

The bonds issued by the associations shall not constitute nor shall they be interpreted as a debt of the Commonwealth of Puerto Rico nor of any of its political subdivisions, including its municipalities; nor the Commonwealth of Puerto Rico or its political subdivisions, including its municipalities, be liable for the same, and said bonds shall be payable solely from those funds committed or pledged for their payment.
The associations shall not be deemed to be acting on behalf of or to have incurred any obligation whatsoever towards the holders of any debt of the Commonwealth of Puerto Rico or its municipalities.
History —Aug. 8, 1998, No. 207, § 4.004, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter IV - Bond [Issuance] (§§ 6671 — 6675) › § 6675 - Agreement of the Commonwealth of Puerto Rico with the bondholders

The Commonwealth of Puerto Rico hereby commits itself and agrees with the holders of any bonds issued under this chapter, and with the persons or entities that enter into contracts with an association according to the provisions of this chapter, that it shall not limit nor alter the rights hereby conferred to the associations until said bonds and the interest thereon are fully settled and said contracts are fully complied with and honored by the associations; Provided, however, That nothing that is provided herein shall affect and alter said limitation if adequate measures are provided for the protection of said holders of the bonds of the associations or of those who have entered into contracts with the associations. The associations, acting as agents of the Commonwealth of Puerto Rico, are hereby authorized to include this promise of the Commonwealth of Puerto Rico on said bonds or contracts.
History —Aug. 8, 1998, No. 207, § 4.005, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter V - Tax Exemption (§§ 6701 — 6702) › § 6701 - Tax exemption

All bonds of the associations duly established pursuant to the provisions of this chapter, their transfer and the proceeds derived from them, and any profits obtained from their sale, are hereby declared to be exempted from the payment of any income, property or license tax or any charges imposed by the Commonwealth of Puerto Rico or any of its municipalities.
History —Aug. 8, 1998, No. 207, § 5.001, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter V - Tax Exemption (§§ 6701 — 6702) › § 6702 - Approval of the bond issue

Any association duly established pursuant to the provisions of this chapter shall have to comply with the following requirements to be able to issue bonds:
(a) That, at the request of the association, the Company determines that the improvement project to be financed through the bond issue furthers or strengthens the tourist industry in Puerto Rico, and
(b) that, the Board of Directors of the Government Development Bank for Puerto Rico, or whatever committee said Board may appoint for such a purpose, approves said issue through a resolution, after considering the following factors:
(1) Whether the association, together with its bondsman, if any, is financially liable and is fully capable or willing to meet its obligations under the proposed bond issue including its obligation to make payments in the amounts and on the dates required.
(2) Whether the proper measures shall be taken to pay the principal and interest on the bonds and to create and maintain the reserves required for such a purpose.
(3) Whether, and to what degree, the bond issue of the association may adversely affect the pending issues of bonds by the Commonwealth of Puerto Rico or any of its instrumentalities.
The Board of Directors of the Government Development Bank for Puerto Rico shall establish, through regulations or resolution, all procedures and requirements it may deem necessary to grant said exemption and authorize said issue. Regardless of whether the Board of Directors or the committee designated by the latter determines after its evaluation that the association or its bondsman has the capacity to pay and approves the bond issue, this shall not constitute an obligation to grant any type of security for the payment of the bonds. Neither shall it be understood that said Board of Directors, the Bank or the Government of Puerto Rico is liable to the holders of said bonds in case the association fails to meet its payment obligations.
History —Aug. 8, 1998, No. 207, § 5.002, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter VI - Miscellaneous Provisions (§§ 6721 — 6724) › § 6721 - Term to file suits; procedures to refute the validity or legality of the establishing and the issuing of bonds; vulnerability clause

Any suit or action to impugn, question or deny the validity or legality of the establishing of a tourism improvement district, the imposition of imposts charged for benefits or profits, the issue of any bonds issued according to this chapter or any other procedure related thereto, shall be initiated within sixty (60) days following the:
(1) Promulgation of the municipal ordinance approving the tourism improvement district or the imposts charged for benefits or profits, or
(2) the favorable determination of the Company regarding the bond issue pursuant to § 6702(a) of this title, as applicable; otherwise, the establishing of the tourism improvement district, the imposing of imposts charged for benefits or profits, the bond issue or any other procedure related thereto shall be valid, legal and irrefutable in all aspects. None of the provisions of this section shall affect the term provided in § 6654 of this title for the owner of the real property to request the revision of the notice of the imposts charged for benefits or profits or any attachment procedure initiated before the competent Superior Part of the Court of First Instance of Puerto Rico.
History —Aug. 8, 1998, No. 207, § 6.001, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter VI - Miscellaneous Provisions (§§ 6721 — 6724) › § 6722 - Contents of deeds or contracts

Any contract or deed for the sale, transfer, assignment or donation of land, or of any type of building or apartment which is part of a tourism improvement district shall state that the buyer or any transferee, assignee or donor fully knows and shall observe the precepts of this chapter and the ordinance which establishes the district and imposes any imposts charged for benefits or profits, as may be applicable. Said statement shall be printed in bold type on the contract or deed.
History —Aug. 8, 1998, No. 207, § 6.002, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter VI - Miscellaneous Provisions (§§ 6721 — 6724) › § 6723 - Dissolution

The dissolution and liquidation of an association shall be conducted pursuant to the provisions of Act No. 144 of August 10, 1995, known as the “General Corporations Law of 1995”, and any surplus existing after the liquidation shall be transferred to the municipality to be used exclusively by the latter for works and improvements in the area which had been set aside for the tourism improvement district. Provided, That in the event a tourism improvement district includes real property located in more than one municipality, any surplus funds after the liquidation shall be distributed among the municipalities where the real property of the district is located. Each municipality shall receive said funds in an amount proportionate to the contribution of the owners of the real property located in the district included in its municipality, from the total collected in the district.
In the event that any real or personal property belonging to the association remains after the dissolution and liquidation of the latter, said property shall be transferred to the municipality where it is located.
History —Aug. 8, 1998, No. 207, § 6.003, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter VI - Miscellaneous Provisions (§§ 6721 — 6724) › § 6724 - Power of the Company to regulate

Except for the matters provided in § 6701 and § 6702(b) of this title, the Company may issue all regulations, rules, administrative determinations or circular letters it may deem necessary to fulfill the purposes of this chapter.
History —Aug. 8, 1998, No. 207, § 6.004, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 264 - Municipal Administration Fund Act (§§ 6741 — 6745) › § 6741 - Creation of the Fund

(a) A Special Fund, to be known as the “Municipal Administration Fund” (“MAF”), is hereby created to be administered by and under the custody of the Government Development Bank for Puerto Rico (“GDB”). Except for the transitory period between February 1, 2014, and June 30, 2014, the revenues of the State IVU received every fiscal year by the Commonwealth of Puerto Rico (“Commonwealth”) shall be deposited into said special fund, once the Fixed Income is deposited in the Dedicated Sales Tax Fund, as required under §§ 11a-16 of Title 13, as amended, known as the “Dedicated Sales Tax Fund Act”. The amount to be deposited every fiscal year in said special fund shall be the product of the amount of the State IVU collected during the current fiscal year multiplied by a fraction whose numerator shall be zero point five percent (0.5%) and whose denominator shall be the rate of such tax during such fiscal year (the “required annual deposit”). Deposits to this special fund shall be made: (1) after an amount which bears the same ratio to the required annual deposit accumulated once the fixed income has been deposited in the Dedicated Sales Tax Fund, as required under §§ 11a-16 of Title 13, is deposited from the first revenues of the State IVU; and (2) after such amount is deposited, periodically every month, by the financial institution acting as custodian of the revenues of the State IVU imposed by the Commonwealth. If the Commonwealth fails to comply with the provisions of this paragraph, it shall pay the MAF an interest equal to the interest established in § 32126(e) of Title 13.
(b) During the transitory period between February 1, 2014, and June 30, 2014, the Commonwealth shall deposit (from the funds of the State IVU, including the transfer of the municipal zero point five percent (0.5%) to the Commonwealth established under this chapter) the sum of forty-three million four hundred forty thousand one hundred eighty-four dollars ($43,440,184). Provided, That such amount shall be distributed among the funds as provided in §§ 32127—32129 of Title 13, and to municipalities in the same proportion as during the period between February 1, 2013, and June 30, 2013. The Commonwealth shall make the monthly deposits to the funds established in §§ 32127—32129 of Title 13, in the same proportion that such municipal funds were deposited during the period between February 1, 2013, and June 30, 2013. The municipalities shall have no obligation whatsoever to return the funds to be deposited by the Commonwealth under this subsection.
History —Jan. 24, 2014, No. 18, § 1.2, eff. Feb. 1, 2014.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 264 - Municipal Administration Fund Act (§§ 6741 — 6745) › § 6743 - Exception by choice

As of July 1, 2014, municipalities at their discretion may choose to:
(a) Receive advances twice a year, which shall consist of the estimated revenues of the following six (6) months based on that same period during the immediately preceding year, which shall never be later than July and January 10 of each year, subject to the conditions and penalties of the Municipal Finance Corporation Act, §§ 6751 et seq. of this title;
(b) semiannually withdraw any excess available in the Municipal Redemption Fund, as defined in subsection (ii) of Section 3 of this Act[sic], once the debt service payment is made,
(c) if the GDB refinances any existing loans whose source of repayment or guarantee is forty percent (40%) of the zero point five percent (0.5%) of the State IVU provided in § 6741 of this title, the GDB shall assume any increase in the interest rate, but only until such obligations become due, and
(d) require priority in the distributions of revenues from the one percent (1%) Municipal IVU after the COFIM’s “fixed income” payment is made, subject to the following two conditions:
(1) To assign to the municipalities that chose not to exercise this option the amounts of the Municipal Development Fund corresponding to forty percent (40%) of the zero point five percent (0.5%) of the State IVU referred to in subsection (i) of Section 3 of this Act[sic], and
(2) to refrain from resorting to the GDB to obtain loans backed or pledged by the revenues generated by the Municipal IVU.
In order for a municipality to avail itself of this option, it shall sign an agreement with the GDB after the approval of this act, but prior to its effective date of February 1, 2014.
History —Jan. 24, 2014, No. 18, § 1.4, eff. Feb. 1, 2014.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 264 - Municipal Administration Fund Act (§§ 6741 — 6745) › § 6744 - Responsibility of the Fund

The President of the GDB shall be the official responsible for establishing and implementing all the procedures to be followed in the administration of the MAF and the advances provided in this chapter.
History —Jan. 24, 2014, No. 18, § 1.5, eff. Feb. 1, 2014.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 264 - Municipal Administration Fund Act (§§ 6741 — 6745) › § 6745 - Guarantee and authority to cover deficiencies

If the amount of the revenues deposited in the MAF is, at the close of any fiscal year, lower than the required annual deposit for said fiscal year, the necessary appropriations to cover such deficiency shall be included in the recommended budget for the following fiscal year. Therefore, the Secretary of the Treasury shall, exclusively and with priority, cover any existing deficiency so that the amounts deposited in the MAF during any fiscal year are equal to the amount that must be deposited in the Fund as provided in § 6741 of this title.
History —Jan. 24, 2014, No. 18, § 1.6, eff. Feb. 1, 2014.