2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART II - Economic Development (§§ 231-241 — 695i) › Chapter 30 - Investment and Cooperative Development Fund (§§ 481 — 494) › § 484 - Investment of cooperative entities

(a) With the purpose of consolidating the resources of the cooperative movement for its development, the following is hereby provided:
(1) Initial investment.— During the first three (3) years from the establishment of the Fund, the cooperative entities shall make an initial contribution payable in three (3) installments as described below. The three (3) payments of the initial contribution shall be made no later than one hundred and twenty (120) days after the incorporation of the Fund, on July 31, 2003 and on July 31, 2004, respectively. The first payment of the initial contribution shall be computed on the basis of the audited financial statement of each cooperative corresponding to calendar year 2000, or fiscal year 1999—2000, as pertinent. The second and third payment shall be computed on the basis of the subsequent audited statements; Provided, That the total initial contribution shall never be less than the sum calculated, based on the audited financial statement corresponding to calendar year 2000 or fiscal year 1999—2000, as it corresponds. Each one of the three (3) payments of the initial contribution shall be computed as follows:
(A) For cooperative credit and savings associations, a sum equivalent to one percent (1%) of its venture capital reserve, less accrued losses from previous years and current losses. These cooperatives shall make their initial investment when the aforesaid one percent (1%) represents an amount equal to, or greater than one thousand dollars ($1,000).
(B) For cooperative partnerships organized under Act No. 50 of August 4, 1994, the sum equivalent to one percent (1%) of their service or social reserves, less losses accrued from previous years and current losses.
(C) For insurance cooperatives organized under §§ 3401—3423 of Title 26, the sum equivalent to two percent (2%) of their total capital, less their assigned withheld reserves and/or savings, as shown in the corresponding audited financial statement presented under statutory rules.
(D) For the Cooperative Bank the sum equivalent to one percent (1%) of its undistributed capital.
(2) Subsequent investments.— As of 2005, and subsequently, any cooperative partnership shall contribute a sum equivalent to one percent (1%) of its net reserves, except the insurance cooperatives whose contributions shall be two percent (2%) of their reserves. This sum shall be computed on the basis of the most recent audited financial statement of the cooperatives, and shall be payable to the Fund on or before July 31 of each year. The cooperatives shall not be required to make subsequent contributions once the amounts contributed by the cooperative movement reach the sum of twenty-five million dollars ($25,000,000). No cooperative, shall individually be bound to make contributions that exceed ten percent (10%) of the total combined contribution to the Fund from the movement and the Commonwealth, which is of fifty million dollars ($50,000,000).
(3) The sums invested by the cooperatives to the Fund shall be deemed for all purposes as an allowable investment asset and shall be evidenced by stock shares issued by the Fund upon receipt of the investments required herein. All net income attributed to the investments of the cooperatives obtained by the Fund, after defraying their operating expenses, and after deducting the reserves for possible losses, other reserves adopted by the Board of the Fund from time to time by the majority vote of two thirds (2 / 3) of its members, and after withholding a sum equivalent to two percent (2%) of their net income as an additional capital reserve, the partial or total remainder may be donated to the Permanent Scholarship Fund for university students, in the cooperative field, or may be returned to the participating cooperatives and to the Government Development Bank in proportion to the contributions made by each of them, as determined by the Board.
(b) The cooperatives may make investments in addition to those required in subsection (a) of this section, through the acquisition of assets duly issued by the Fund from time to time. For the respective cooperatives, such investments shall be subject to the regulations applicable to said institutions pursuant to this chapter.
History —Aug. 18, 2002, No. 198, § 6.