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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365 - Assemblies

The general assembly is the maximum authority of every cooperative, and its decisions are binding on the attending and absent members, its Board, and committees, provided they are adopted pursuant to the incorporation clauses, the general regulations, and the applicable regulations and laws. In the case of cooperatives that are not organized by districts, the general assembly shall be composed of the members. Said general assembly of members shall be held annually. In the case of cooperatives that are organized by districts, the general assembly shall be the assembly of delegates. In the latter case, the cooperative shall hold district assemblies in which the district directors, as well as the delegates that correspond to each district, shall be elected. The number of delegates to be elected in each district shall never be less than three (3) delegates, nor less than one percent (1%) of the total number of members in the district, up to a maximum of twenty (20) per district.
The general assemblies of members and the general assemblies of delegates shall be held annually within the first four (4) months of the fiscal year of the cooperative. The general assemblies, for just cause, and at the satisfaction of the Corporation, the general assemblies or members or delegates, as the case may be, can be held on a later date than established above, endeavoring at all times to preserve the right of the members to be informed of the results of the operations, to elect the delegates, directors and committee members in an opportune way, and to receive the corresponding distribution of overages, if any, all of which, regardless of the fact that the assembly in question is considered as regular or special.
It shall be the responsibility of the Board of Directors to achieve the most expeditious holding of the assemblies. Provided, That in any case that six (6) months or more have elapsed following the end of the fiscal year of the cooperative, without having held the general assembly of members or delegates, the Corporation shall issue an order to the Board of Directors to show cause as to why the imposition of fines on the directors has not proceeded for the delay in holding said assembly.
The holding of every district assembly and of delegates whether regular or special, must be notified at least ten (10) days prior to the date it is held.
History —Oct. 28, 2002, No. 255, § 5.01.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365a - Notice

The Board of Directors may convoke special, general or district assemblies, when it is deemed convenient. The cooperative shall be bound to call special assemblies when requested by:
(a) Ten percent (10%) of the total number of members of the cooperative when it is a general assembly of members;
(b) ten percent (10%) of the total number of members of a district when it is a district assembly, or
(c) fifty percent (50%) of the total number of delegates, when it is a general assembly in a cooperative organized by districts.
The request shall specify the matters to be considered in the extraordinary assembly.
History —Oct. 28, 2002, No. 255, § 5.02.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365b - Quorum

In every general or district assembly of members, a quorum of not less than ten percent (10%) of the first one thousand (1,000) members, and three percent (3%) of the excess of one thousand (1,000) members shall be required; Provided, That those members who are minors, shall not be considered for the purpose of computing the required quorum, nor shall they be considered as members present to complete said quorum. Any member who is delinquent in his/her obligations with the cooperative as of the date that the call to the meeting is issued shall also be excluded from both computations.
A quorum of the majority of elected delegates shall be required in the assemblies of members. In general assemblies of members or delegates, as pertinent, quorum shall never be less than the total number of members to be elected to the Board, and to the credit and supervision committees.
The members of the Board and of the committees elected as delegates in an assembly shall abstain from voting on their respective reports or matters related to their functions.
In the event that the required quorum is not achieved in a first call to meeting, a second call to meeting shall be issued for the assembly, in which the members or delegates that are present shall constitute quorum. The second call to meeting shall never be made before two hours have elapsed from the first call, provided that the first and second call have been expressly indicated in the written notices remitted to the corresponding members or delegates, with an express indication that the members present for the second call would constitute quorum.
History —Oct. 28, 2002, No. 255, § 5.03.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365c - Right to vote

The members of a cooperative, whether natural or juridical persons, and regardless of the number of shares they hold, shall each be entitled to one (1) vote. No member shall issue his/her vote through a proxy, except in the case of the members who are juridical persons, who may vote through their authorized representative. In the case of cooperatives organized by district, each district delegate shall be equally entitled to one (1) vote.
History —Oct. 28, 2002, No. 255, § 5.04.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365e - Board of Directors—Election and composition

(a) In the case of newly organized cooperatives, the incorporators shall designate the first Board of Directors and the respective committees, pursuant to the provisions of this chapter, the regulations adopted thereby, and the general regulations of the cooperative.
(b) In the case of savings and credit cooperatives in operation that are not organized by districts, the general assembly of members shall cover by election, the positions on the Board whose terms have expired.
(c) In the case of savings and credit cooperatives organized by districts that are already in operation, the members of the Board that represent each district shall be elected in the district assembly according to the number of said directors that correspond to each district, according to the general regulations. The positions of Board members at large, whose terms have expired, if any, shall be filled through an election at the general assembly of delegates.
(d) In cases that, for any event, the election of directors cannot be held during the general assembly of members or delegates, said election can be held at a special assembly.
(e) In every case, the Board of Directors shall be made up of not less than seven (7) nor more than fifteen (15) members.
(f) Every person who hopes to be a member of the Board of Directors must have been a member of a cooperative at the time of the election, for a term of one (1) year, and have fully complied with his/her obligations as a member during said period.
History —Oct. 28, 2002, No. 255, § 5.06.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365f - Board of Directors—Terms of office

(a) General rule. — Members of the Board shall be elected for a term of not more than three (3) years each, and shall hold office until their successors are elected. The members of the Board cannot be elected to fill the same or other elected office for more than three (3) consecutive terms. For the purposes of this provision, an elected term shall be considered as the period for which a person is elected by the general assembly of members, the district assembly, or the general assembly of delegates, as the case may be, regardless of whether it is completed or not due to resignation or any other cause. In the cases in which a member of the Board resigns his/her office before the first or second term of being elected, and is again elected in the assembly subsequent to his/her resignation, said terms shall be deemed as consecutive.
(b) Regarding every cooperative. — The general regulations of every cooperative shall provide for the staggered election of the Board members, so that the term of election of not less than one-third (1 / 3) of the members of said Board does not expire in the same year. The term of incumbency by designation as a member of the Board shall be counted as a term only when the office is held for more than one (1) year. Members of the Board that hold an elected office that expires in their last consecutive term cannot be elected or designated for the same, or any other elected office in the same cooperative until twenty-four (24) months have elapsed from the date they ceased in office.
History —Oct. 28, 2002, No. 255, § 5.07.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365g - Board of Directors—Vacancies

Vacancies that arise among the members of the Board shall be filled by appointment through the vote of the majority of the remaining incumbent members duly constituted to such effects, subject to ratification by the corresponding general assembly of members, the district assembly, or the assembly of delegates, as pertinent. When a cooperative is organized by districts and the member who caused the vacancy is a member who represents a district, it shall be filled by the Board with another member of the corresponding district.
Any person appointed by the Board to fill a vacancy shall appear for consideration by the next assembly of delegates, the next district assembly, or the next assembly of delegates, whichever is pertinent. Upon being ratified by the corresponding assembly, said director shall take office until the term for which the original director was elected and whose vacancy was filled, concludes. If not ratified, the assembly shall proceed to elect a director, who shall take office until the expiration of the term for which the original director who provoked the vacancy was elected.
History —Oct. 28, 2002, No. 255, § 5.08.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365h - Board of Directors—Duties; election of officers

The members of the Board shall be responsible for the definition and adoption of the institutional policies of the cooperative, shall have a fiduciary responsibility towards it and its members, and shall act as a good paterfamilias in all cooperative affairs.
The Board of each cooperative shall meet within ten (10) days following the date the corresponding general assembly of members or delegates was held, to elect the officers of the Board of Directors, pursuant to what is established in the general regulations thereof. The directors who have held said office as director for one (1) year or more, and have approved [sic] the training courses required in subsection (k) of § 1365d of this title, shall be eligible to hold official positions on the Board.
History —Oct. 28, 2002, No. 255, § 5.09.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365j - Executive President—Functions and responsibilities

Acting in accordance with the institutional policies adopted by the Board of Directors of the cooperative, the Executive President shall have the following functions and responsibilities:
(a) Implement the institutional policies adopted by the Board.
(b) Select, recruit, supervise, evaluate and remove all personnel of the cooperative pursuant to the institutional policies adopted by the Board. He/she shall also have the responsibility of coordinating and supervising the administrative units and ensure the efficiency of the managerial and financial procedures.
(c) Develop and implement a management training and cooperative education program that shall cover the technical areas of administration, marketing, accounting and finances and inform them on the principles and philosophy of the cooperative movement.
(d) Draft and establish the regulatory compliance programs to guarantee faithful compliance with the local and federal laws and regulations that apply to the operations of the institution.
(e) Draft the business plan of the cooperative which shall propitiate [sic] an adequate and sustained financial performance through the adoption of measurable operational goals, strategies and objectives that shall provide guidance to the cooperative. If deemed appropriate, the Executive President shall identify the external professional resources to assist him/her in drafting said plan, which contracting shall comply with the contracting norms and policies of the institution. Said plan shall require the final approval of the Board of Directors. The Executive President shall exercise administrative authority to implement the institutional policy agreements and the directives of the business plan of the institution, and draft the annual schedule of work that corresponds to the achievement of the goals, strategies and objectives of the business plan of the cooperative.
(f) Develop the budget proposal which shall be submitted to the Board of Directors for its consideration and approval, before commencing the operating year of the cooperative.
(g) Keep the Board of Directors informed on the operational, administrative and financial condition of the cooperative, through regular monthly reports to the Board of Directors, as well as any other special reports that in his/her judgment, or that of the Board of Directors, should be submitted.
History —Oct. 28, 2002, No. 255, § 5.11.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365k - Supervisory committee—Election and composition

A supervisory committee shall be elected at the first general assembly of members or delegates of every cooperative, which shall be composed of three (3) members. The members of the supervisory committee shall be elected for a term of not more than three (3) years each, and shall hold office until their successors are elected. Regarding their reelection, the members of the supervisory committee shall be subject to the same limitations as the members of the Board. The general regulations of every cooperative shall provide for the staggered election of the committee by the corresponding general assembly of members or of delegates, so that the term of election of not more than one-third (1 / 3) of the members of said committee elapses in the same year.
When a vacancy occurs among the members of the supervisory committee, the remaining members shall designate an eligible member to fill the vacancy, subject to ratification by the next general assembly of members or delegates, as the case may be. Every person nominated to fill a vacancy shall appear before the consideration of the next assembly of members or delegates, as the case may be. In the event said committee member is ratified by the corresponding assembly, said committee member shall hold office until the expiration of the term for which the member of the original committee was elected. In the event the member is not ratified, the assembly shall proceed to elect a committee member who shall hold office until the expiration of the term for which the original committee member was elected.
History —Oct. 28, 2002, No. 255, § 5.12.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365l - Supervision and Auditing Committee—Functions

The supervision and auditing committee of each cooperative shall have, besides any others that are provided in this chapter or its regulations, the following functions and responsibilities:
(a) Assist the internal and external auditors in the examination of the accounts and operations of the cooperative, and perform the audits it deems are necessary or convenient for the best interests of the cooperative.
(b) Receive and analyze the reports of the external auditors and the Corporation.
(c) Render a report to the Board on the result of the examinations of the cooperative no later than thirty (30) days following the date that it concludes [sic].
(d) Render a written report to the general assembly and the Corporation, on the work performed by said Committee during the year, it being understood that that the committee shall not issue a pronouncement on the effectiveness or efficiency of the administrative charges of the Board. Said report shall not include information that by provision of law or of applicable regulations is confidential or privileged. The supervision and auditing committee shall present and discuss this report with the Board no later than twenty (20) days prior to the date said assembly is held.
(e) Act as a mediator in any controversy of the members that arises in the application of the statutory or regulatory provisions of the cooperative, provided they are not labor-management controversies.
(f) Ascertain that the cooperative complies with the recommendations contained in the audits performed, see to the legality of the actions of the Board and management, the veracity of the reports that they present to the members, and the security of the assets of the cooperative.
(g) Request the Board of Directors to contract the personnel that the committee needs to carry out its functions and discharge the responsibilities, subject to the appropriation of funds authorized by the Board, according to the schedule of work presented by the committee.
(h) The supervision committee may recommend to the general assembly the suspension or separation of any member of the Board or of any committee that has incurred violations of the provisions of this chapter, upon the filing and serving of charges, and the holding of a hearing before the committee. The person thus charged may attend the hearing, accompanied by legal counsel.
(i) Perform such other functions that are assigned to it by the Assembly.
History —Oct. 28, 2002, No. 255, § 5.13.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365m - Credit Committee—Designation and composition

The Board shall designate a credit committee, composed of not less than three (3) regular members and two (2) alternate members, who shall perform the functions of those who hold office in every case of temporary absence. The members of the credit committee shall be designated for a term of not more than one (1) year each, and shall hold office until their successors are appointed, and may be redesignated to their positions. Whatever vacancies that arise among the members of the credit committee shall be filled by the Board for their uncompleted term.
The Board may also designate credit officials, on whom they may delegate the power to evaluate the requests for loans and authorize them up to the maximum limits set by the Board. Said officials shall inform the credit committee of all applications denied by them, for its pertinent action, and shall render a written report to the credit committee with the frequency established by the Board, but not less that once (1) a month, on the loans they authorize and deny.
History —Oct. 28, 2002, No. 255, § 5.14.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365n - Credit Committee—Functions

The credit committee of every cooperative shall have, in addition to any others provided in this chapter or its regulations, the functions and responsibilities indicated below:
(a) Consider, approve, or deny loans for amounts in excess of those that the credit officials are authorized to grant, but up to the limits fixed by the lending policy established by the Board. The loan applications of the members of the directing bodies, the supervision committee, and the executive officials, in excess of their shares and deposits, shall be considered at a meeting in which a member of the supervision committee is present, and who shall participate with voice and vote in said meeting.
(b) Evaluate and submit for the consideration and final decision of the Board those loan applications in amounts in excess of the maximum limits that the Committee is authorized to grant.
(c) Review and analyze the reports of the credit officials on the loans that they grant or deny and render a report thereof to the Board.
(d) Render a monthly report to the Board on the loans that the Committee grants or denies.
The credit committee shall meet as many times as needed for the performance of its duties, upon prior agreement thereof, or a call to meeting by its Chairman or the Acting Chairman or the Executive President.
History —Oct. 28, 2002, No. 255, § 5.15.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365o - Education Committee—Designation and composition

The Board shall designate an education committee to develop a cooperative education program, according to the standards adopted pursuant to the provisions of this chapter. This committee shall be composed of not less than three (3) members nor more than seven (7) members, at least half of which shall not be members of the Board nor of other committees of the cooperative. The members of the education committee shall hold office for a term of one (1) year and shall perform their duties until their successors are elected, and may be redesignated to their positions by the Board of Directors. Any vacancies that may arise among the members of the education committee shall be filled by the Board for the remainder of the term of the outgoing member.
History —Oct. 28, 2002, No. 255, § 5.16.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365p - Educational policy

The Board of Directors shall adopt an educational policy that shall lead to the education of members, boards of directors, managers and employees, which shall be addressed to expedite and propitiate:
(a) The generation of new volunteer leaders with technical and financial knowledge.
(b) Personal financial education at individual and family levels with a view to develop a better credit consumer, reduce the incidence of bankruptcies, and stimulate savings and investment in productive activities.
(c) Education on the main guiding principles, doctrines, nature and benefits of the cooperative movement, mainly for young people and decision makers.
The Board of Directors shall provide the necessary resources in the budget of the cooperative, to implement the educational policy and shall continually supervise its execution and implementation. The budgetary items assigned for education shall be destined to the direct rendering of direct educational services. The content of the educational policy doctrine on the cooperative movement shall be based on the principles approved by the Cooperative League. It shall be the express obligation of the Corporation to verify the use of the budget assigned for the rendering of direct educational services. The provisions of this section shall not lessen the obligation of the cooperative, its board of directors and employees to comply with the continuing education requirements provided by the Corporation pursuant to §§ 1334 et seq. of this title.
History —Oct. 28, 2002, No. 255, § 5.17.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365q - Education Committee—Functions

The education committee of each cooperative shall have the following functions and responsibilities:
(a) Pursuant to the educational policy established by the Board, it shall draft a working plan to:
(1) Attend to the training needs of the members of the boards of directors on the matters inherent to the functions they perform;
(2) provide education to the personnel of the cooperative on the principles, methods and characteristics of the cooperative movement and the entrepreneurial function of the cooperative;
(3) provide information to the community on the benefits and services of the cooperative and the cooperative movement in general, and
(4) coordinate the educational and training processes for the development of new cooperative leaders and future members of the boards of directors.
(b) Render a biannual written report to the Board on the work performed in the corresponding term, and
(c) render an annual report to the general assembly on its activities and achievements.
History —Oct. 28, 2002, No. 255, § 5.18.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365r - Compensation and reimbursement of expenses

(a) None of the members of the Board of Directors shall receive any compensation or remuneration whatsoever for the performance of their functions. However, the general regulations of the cooperative may authorize the payment of per diems for attendance to official meetings, subject to the rules specifically adopted by the Corporation to such purposes. Said rules shall provide, among other things, the maximum permissible amount for this item, per meeting, and practices not allowed regarding the payment of these amounts.
(b) Furthermore, the cooperative may reimburse any reasonable expenses incurred by the members of the Board of Directors in the performance of their functions, upon presenting documentary evidence thereof, pursuant to the regulations adopted by the Board of Directors of each cooperative. The Corporation is also empowered to adopt specific regulations on this matter, which shall define reasonable amounts and forbidden practices regarding the reimbursement of expenses. It shall be the responsibility of the Board of Directors to see to the faithful compliance of the standards provided in the regulations of the cooperative and in the regulations adopted by the Corporation on this matter.
(c) The payments made under this section shall only cover official travel expenses that specifically advance the interests of the cooperative and that shall benefit it. A detailed list of all sums paid for this item shall be expressly divulged in the annual report distributed to the members.
(d) No cooperative that has failed to distribute its surplus among its members for two (2) consecutive years, shall make any payment whatsoever to the members of the Board of Directors.
(e) Any payment of commissions, incentives, benefits, or promotions, or any other object of value received by the cooperative shall be for the exclusive benefit thereof, and shall not favor nor benefit any member of the Boards of Directors, the Executive President, nor any employee.
(f) None of the above shall restrict the power of the cooperatives to provide the necessary insurance to the executive officials and members of the Boards of Directors to protect each of them while they are exercising the functions of their office. The cooperative may also acquire the following insurance for them:
(1) Life insurance;
(2) cancer and pernicious disease insurance;
(3) public liability insurance, and
(4) insurance specifically designed by insurance cooperatives for officials and members of the governing boards during official functions.
History —Oct. 28, 2002, No. 255, § 5.19.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365s - List of directors and committee members

Every cooperative shall remit a complete list of the members of their Boards of Directors, indicating the official position held by each of them.
These lists shall include any other pertinent information required by the Corporation and shall be sent no later than twenty (20) days following the date that the members are elected or designated. In the case of vacancies, a written notice shall be sent to the Corporation and the Cooperative League, indicating the name of the member of the Board of Directors who caused the vacancy and that of his/her substitute, no later than twenty (20) days following the date that the substitute takes office.
History —Oct. 28, 2002, No. 255, § 5.20.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365t - Board of Directors—Causes for separation

Any member or official of the Board of Directors may be separated from office for the following causes:
(a) Incur any of the actions constituting cause for the separation of members of a cooperative that are established in § 1364e of this title.
(b) Violate the provisions of this chapter, §§ 1334 et seq. of this title, known as the “Corporation Act” or any of the acts that apply to the operation of the cooperative or of the regulations adopted, or administrative orders duly issued by virtue of said laws and regulations.
(c) Violate the corporate clauses or the general regulations of the cooperative.
(d) Incur conduct that constitutes a violation of his/her fiduciary duties.
(e) Is no longer eligible pursuant to this chapter and its regulations, for the office he/she holds or that his/her participation in the affairs of the cooperative is injurious to the best interests or the financial solvency thereof.
(f) Present a pattern of absences without just cause therefore. The code of ethics of each cooperative shall provide the norms, parameters and procedures pertaining to this matter.
(g) Engage in inadequate practices in the performance of his/her functions in the cooperative.
(h) Fail to comply with the requirements provided in § 1365d of this title.
(i) Prevent, hinder, or unduly interfere, by intentional or negligent act or omission, with the convocation or holding of any of the assemblies of the cooperative as provided by this chapter, the regulations adopted by virtue thereof, the certificate of incorporation of the cooperative, or its general regulations.
History —Oct. 28, 2002, No. 255, § 5.21.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365v - Directors and committee members—Limitation of employment

No member of a Board of Directors may be an employee of a savings and credit cooperative until at least two (2) years have elapsed from having ceased in his/her office on the Board or committee, whether by completion of his/her term of office, or resignation from the position held on a Board of Directors.
History —Oct. 28, 2002, No. 255, § 5.23.
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 V - Assemblies, Board of Directors and Committees (§§ 1365 — 1365w) › § 1365w - Directors and committee members—Power to remove

(a) When the Corporation has grounds to believe that any member of the Board or an officer thereof, or any member of the other boards of directors, or any executive officer or employee of a cooperative has incurred one of the causes for removal established in § 1365t of this title, he/she shall raise charges against same, pursuant to the provisions of § 1334q of this title. The order to show cause may provide for the provisional release from functions of the person thus affected. The administrative procedure initiated by the Corporation pursuant to this section shall give strict compliance to the provisions of the Organic Act of the Corporation.
(b) Every person who is permanently removed from office as a member of the Board or as an official thereof, or as a member of any of the other boards of directors, or as executive official of a cooperative shall be impeded from being elected, designated, appointed or contracted to hold any office, or be employed in any other cooperative, except by requesting and receiving the approval of the Corporation.
(c) In the case of a cooperative that is under receivership, liquidation, involuntary fusion, sale of assets, a cease and desist order, or any other government intervention that exceeds one (1) year, any person who during the three (3) years prior to the intervention, has held the office of director, member of the supervision committee or executive officer [for at least six (6) months] shall be barred from being elected, designated, appointed or contracted to hold any office or employment in any other cooperative, unless he/she requests and obtains the prior approval of the Corporation. At the moment that the cooperative is audited by the Corporation, it shall grant the directors, members of the supervision committee and executive officials covered by this subsection, a reasonable opportunity to show their diligence in discharging their functions, and thus obtain the authorization to hold any office or employment in any other cooperative.
History —Oct. 28, 2002, No. 255, § 5.24.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366 - Capital

The capital of every cooperative shall consist of the total amount of its capital stock, indivisible capital or surplus, and capital liabilities.
History —Oct. 28, 2002, No. 255, § 6.01.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366b-1 - Payment receipt

For purposes of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix a cut-off time for money or item transactions and book entries that shall not be earlier than two in the afternoon (2:00 p.m.). Banks and cooperatives shall date and credit any transaction on the day they were made either by drive-through or any similar service offered by the bank or cooperative. In the case of loans and obligations, if the payment due date is on a Saturday, Sunday, or holiday and the payment transaction is made on any of such days, the creditor shall treat such payment as received on time and may not impose late fees, even when, for operating or accounting purposes, the creditor deems such transaction to be made on another day. Creditors are required to provide transaction receipts bearing the date on which such transaction was made.
Any item or deposit of money received on any day after the cut-off time shall be treated as being received at the opening of the next banking day for internal purposes only; never for the purpose of providing transaction confirmation, crediting an account or debt, or imposing late fees.
History —Oct. 28, 2002, No. 255, added as § 6.03–A on Dec. 30, 2010, No. 239, § 2.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366c - Surplus shares

The Board of Directors shall provide for the distribution of the net surplus that has been accrued by the cooperative at the end of each year, after the amortization of accrued losses, if any, followed by the contributions to the indivisible reserve, as required in this chapter, and the allowance for possible losses in loans, mandatory and voluntary reserves. As long as the cooperative has accrued losses, the distribution of surplus shall not proceed. In those cases that the cooperative shows that it has satisfactorily addressed the causes that provoked the accrued losses, and shows a sustained improvement in its financial, managerial or operating situation, the Corporation may authorize the deferral of the accrued losses and allow the distribution of a portion of the surplus.
The surplus may be distributed on the basis of the computed reimbursement or refund, taking into consideration the share of the collected interest, or a combination of said reimbursement for shares along with the payment of dividends on paid-up shares not withdrawn at the end of the calendar year, in the proportions and amounts set forth by the Board of Directors. All distributions of surplus shall be made through accreditation of shares, never in cash.
Any shares that, at the close of the business year of the cooperative have been fully paid-up shall receive a proportional part of the surplus as payment of dividends, which shall be calculated from the first day of the month following the date the payment is made. The reimbursement or refund based on the sponsorship of interest collected shall be in proportion to the interest paid by them on loans during the year.
History —Oct. 28, 2002, No. 255, § 6.04; Aug. 15, 2008, No. 283, § 3.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366d - Withdrawal of deposits and shares

When a member of a cooperative retires voluntarily or is separated from it, he/she shall be paid, after discounting the amount of any debt in the cooperative (including debts contracted as debtor in solidum, warrantor or sponsor, regardless of whether or not personal profit or lucre has been obtained from said loan), the sum of money that said member has paid for shares and deposits, plus the amounts of dividends, cash, patronage and interest duly-earned and accredited up to the date of his/her retirement or expulsion. Said payment shall be made within thirty (30) days following the retirement or separation of the member.
The cooperative may require that the notice of withdrawal of deposits be made thirty (30) days in advance, and that the notice of withdrawal of stock shall be made ninety (90) days in advance.
History —Oct. 28, 2002, No. 255, § 6.05.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366e - Withdrawal or transfer of shares by members

The members of the Board and its officials, committee members, executive officers, and members of a cooperative who participate directly in its administration, shall not withdraw nor transfer their shares while they hold office or perform functions in the cooperative. Any withdrawal or transfer of shares made by those persons in the six (6) months prior to the date on which the Corporation determines that the solvency or liquidity of the cooperative is endangered, or on the date the cooperative decides to use any mechanism authorized by law to safeguard its interests, whichever occurs first, shall be deemed as null. In such case, said persons shall continue to answer to the creditors of the cooperative, or to the Corporation, or to any other underwriter for the value of the shares that they have withdrawn and transferred.
However, in cases of emergency or extreme need, the members of the Board and its officials, committee-members, executive officials and the members of a cooperative that participate directly in its administration, may withdraw or transfer their shares, with the prior authorization of the Board of Directors. In such case, the members of the Board and its officials, committee members, executive officials and members of a cooperative that participate directly in the administration thereof, shall continue to answer to the creditors of the cooperative, to the Corporation, or to any other insurer, pursuant to what is established above.
History —Oct. 28, 2002, No. 255, § 6.06.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366f - Losses, liquidity, and reserves

(a) Provision for possible losses in loans. — Every cooperative shall establish a provision for possible loan losses, chargeable to operating income, using a formula based on the real loan loss experience as fixed by the Corporation through regulations.
(b) Minimum liquidity requirement. — Every cooperative shall always maintain a required minimum amount of liquid assets, that shall be computed in proportion to the composition and maturity of its deposits and certificates. The Corporation shall adopt regulations to determine the percent required and the base for the computation thereof, which shall not be less than fifteen percent (15%) of the sum total of the obligations in deposits and certificates, as these appear on the last day of the month. This minimum liquidity requirement does not imply an additional reserve against the economies of the cooperative.
(c) Contingency reserves. — The Corporation may require any cooperative to establish and maintain a contingency reserve, chargeable to its net savings, to protect it against any risk or reasonably determinable extraordinary activity whose adverse economic consequences could bring about losses greater than the indivisible accrued or available capital. It may likewise authorize the establishing of this reserve by request of the Board of a cooperative.
(d) Voluntary reserves. — The Board of every cooperative may provide periodic contributions to the voluntary reserves whose creation has been previously approved by the general assembly of members and delegates. Voluntary reserves may be established for any legitimate purpose that shall advance the interests of the cooperative or the cooperative movement, including contingencies, investments in 100% owned subsidiaries, investment in second degree financial enterprises and/or cooperative enterprises, institutional growth and development, or for education in cooperative matters and technical and professional training.
History —Oct. 28, 2002, No. 255, § 6.07.
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 VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366i - Contribution for education

Every cooperative is bound to set aside at least one-tenth of one percent (0.1%) of its total volume of business, for the education and integration of the cooperative movement in Puerto Rico. Within three (3) months following the close of operations of each fiscal year, the cooperatives shall determine the amount of said computation up to a maximum of four thousand dollars ($4,000). Every cooperative whose total volume of business exceeds four million dollars ($4,000,000) a year, shall be bound to pay an additional amount of five percent (5%) of its annual net surplus, up to a maximum of six thousand additional dollars ($6,000). This fund shall be contributed to the Cooperative League, which shall use it for education, integration and advisory purposes. For the purposes of this section, the total volume of business shall be computed by adding the total of the loans granted by the cooperative at the close of business, plus the total income from interests in savings and investments as of said date.
Within the month following the close of operations of each fiscal year of the cooperative, it shall have deposited in the Cooperative League, the total amounts it must have paid for that year, that are due. The deposits shall be made quarterly, with each partial payment estimated at one-fourth of the payment corresponding to the preceding year The pertinent adjustment shall be made at the close of operations of the year, and in the event of an overpayment, it shall be credited to the estimated payment for the following first trimester.
History —Oct. 28, 2002, No. 255, § 6.10.