2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 84 - Public Corporation for the Supervision and Insurance of Cooperatives (§§ 1334 — 1335h) › § 1334a - Definitions

For the purposes of this chapter, the following terms and phrases shall have the meaning stated below:
(a) Shares. — Means the contribution made by a member of a cooperative to the capital of the enterprise.
(b) Bank. — Means the Government Development Bank created by §§ 551—568 of this title.
(c) Capital. — Means the money that insured cooperatives contribute to the Corporation pursuant to this chapter.
(d) Commissioner of Financial Institutions. — Means the official designated by the Governor to direct the Office of the Commissioner of Financial Institutions pursuant to §§ 2001 et seq. of this title, known as the “Office of the Commissioner of Financial Institutions Act”.
(e) Cooperative. — Means every cooperative entity duly constituted and authorized to operate as such, pursuant to the laws of the Commonwealth of Puerto Rico, including cooperative credit and savings unions.
(f) Cooperative credit and savings union. — Means every cooperative credit and savings union entity, savings and credit federation, duly constituted and authorized to operate as such, pursuant to the laws of the Commonwealth of Puerto Rico. This term also includes the Cooperative Bank, for the purpose of its insurability by the Corporation under the special terms and conditions provided in this chapter.
(g) Insured cooperatives. — Means the cooperative savings and credit unions that have availed themselves of the shares and deposits insurance provided by the Corporation.
(h) Corporation. — Means the corporate entity designated as the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico, created by this chapter.
(i) Depositor. — Means any natural or juridical person that maintains deposits in a cooperative credit and savings union.
(j) Deposits. — Means all assets, except shares, owned by a partner and/or depositor in a cooperative credit and savings union that are evidenced by certificates of deposits, savings accounts, checking accounts, individual retirement accounts, Christmas funds or any other financial instrument of a similar nature.
(k) Emergency. — Means the condition of a cooperative that implies an extremely high probability of failure or of insufficient liquidity, whether immediately, or at a short term, that would imply the disbursement of funds of the Corporation to the members or insured depositors, or the risk of losses for partners of uninsured cooperatives.
(l) Federation. — Means the cooperative credit and savings unions Federation organized pursuant to Act. No. 6 of January 15, 1990, also known as the “Cooperative Savings and Credit Unions Act”.
(m) Fund. — Means the Cooperative Savings and Credit Union Shares and Deposits Insurance Fund.
(n) Board. — Means the Board of Directors of the Corporation.
(o) Central cooperative body. — Means those corporate entities or bodies whose sole partners, stockholders or members are cooperatives. This term includes the League of Cooperatives, the Cooperative Bank, the Multiple Insurance Cooperative, and the Life Insurance Cooperative.
(p) Extraordinary losses. — Means the losses incurred by the Corporation in an operating year in excess of the amount of net income of said year, including interest, plus twenty-five percent (25%) of the accrued reserves balance.
(q) Incurred losses. — Means the claims the Corporation is bound to pay for shares and deposits insurance, as provided in this chapter, in an operating year. When determining said losses, the claims reported and paid during said year shall be included, as well as those reported during the course of said year that are outstanding at the close of operations, plus a certified actuarial estimate of those claims deemed as incurred during said year and that have not been identified or reported, for which it is deemed prudent to acknowledge the corresponding obligations.
(r) Executive President. — Means the chief executive officer who is responsible for the direct management and daily operations of the Corporation.
(s) Special premium. — Means the premium added to the regular premium that may be imposed on the cooperative credit and savings unions that have availed themselves of the shares and deposits insurance, for the payment of extraordinary losses and special or additional coverages decreed by the Corporation.
(t) Regular premium. — Means the annual amount to be paid by cooperative credit and savings unions for shares and deposits insurance, computed on the basis of rate types to be prescribed by the Corporation from time to time.
(u) Supplementary premium. — Means the premium additional to the regular premium that may be adopted for special or additional coverages decreed by the Corporation.
(v) Reserves. — Means the accrued total of resources generated in the course of operations, excluding the capital that is encumbered to handle obligations.
(w) Shares and deposits insurance. — Means the insurance and guarantee to be provided by the Corporation to partners and depositors of a cooperative credit and savings union that their shares and deposits will be protected up to a certain amount, against losses.
(x) Partner. — Means every nonprofit natural or juridical person that is admitted as a member of a cooperative.
(y) Substantial financial interest. — Means the financial interest that implies direct or indirect control.
History —Aug. 17, 2001, No. 114, § 3; Aug. 10, 2002, No. 163, § 2.