2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 37 - Uniform Securities Act (§§ 851 — 898) › Subchapter IV - General Provisions (§§ 881 — 898) › § 894 - Scope of chapter and service of process

(a) Sections 851, 861(a), 871, 885 and 890 of this title apply to persons who sell or offer to sell when (1) an offer to sell is made in Puerto Rico, or (2) an offer to buy is made and accepted in Puerto Rico.
(b) Sections 851, 861(a) and 885 of this title apply to persons who buy or offer to buy when (1) an offer to buy is made in Puerto Rico, or (2) an offer to sell is made and accepted in Puerto Rico.
(c) For the purpose of this section, an offer to sell or to buy is made in Puerto Rico, whether or not either party is then present in Puerto Rico, when the offer (1) originates from Puerto Rico or (2) is directed by the offeror to Puerto Rico and received at the place to which it is directed (or at any post office in Puerto Rico in the case of a mailed offer).
(d) For the purpose of this section, an offer to buy or to sell is accepted in Puerto Rico when acceptance (1) is communicated to the offeror in Puerto Rico and, (2) has not previously been communicated to the offeror, orally or in writing, outside Puerto Rico; and acceptance is communicated to the offeror in Puerto Rico, whether or not either party is then present in Puerto Rico, when the offeree directs it to the offeror in Puerto Rico reasonably believing the offeror to be in Puerto Rico and it is received at the place to which it is directed (or at any post office in Puerto Rico in case of mailed acceptance).
(e) An offer to sell or to buy is not made in Puerto Rico when (1) the publisher circulates or there is circulated on his behalf in Puerto Rico any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in Puerto Rico, or which is published in Puerto Rico but has had more than two-thirds of its circulation outside Puerto Rico during the past twelve months, or (2) a radio or television program originating outside Puerto Rico is received in Puerto Rico.
(f) Sections 852 and 861(c) of this title, as well as § 885 of this title so far as investment advisers are concerned, apply when any act instrumental in effecting prohibited conduct is done in Puerto Rico, whether or not either party is then present in Puerto Rico.
(g) Any applicant for registration under this chapter and any issuer that proposes to offer securities in Puerto Rico through any person acting on an agency basis, as commonly understood, shall file with the Commissioner in such a form as he/she through regulation may prescribe, his/her irrevocable consent designating the Commissioner or his/her successor as his/her legal representative, for the purpose of receiving service concerning any non-criminal process, action, or proceeding initiated against him/her or his/her successor, executor or administrator, which have arisen from the provisions of this chapter or from any regulation or order promulgated pursuant to its provisions after such a consent has been filed, with the same force and validity as if served personally on the person filing the consent. Any person who has filed such a consent in connection with a previous registration need not file another. Service of process may be made by leaving a copy of the summons at the office of the Commissioner, but it shall not be effective unless:
(1) The plaintiff, who may be the Commissioner him/herself, in a suit, action or proceeding initiated by him/her, immediately sends notice of the service of process and a copy of the summons by registered mail to the defendant or respondent at his/her last address filed with the Commissioner, and
(2) the plaintiff’s affidavit of compliance with this subsection is filed by the plaintiff in the case, on or before the term to reply expires, or within the additional term granted by the court.
(h) When any person, including any nonresident of Puerto Rico, engages in any conduct prohibited or declared actionable by this chapter or by any regulation or order promulgated pursuant to its provisions, and has not filed his/her consent to service of process pursuant to subsection (g) of this section, and personal jurisdiction over him/her cannot otherwise be obtained in Puerto Rico, such conduct shall be considered equivalent to his/her appointment of the Commissioner or his/her successor to be his/her legal representative to receive service concerning any non-criminal legal process, action or proceeding initiated against him/her or his/her successor, executor or administrator, which arises from such conduct and is initiated under the provisions of this chapter or under any regulation or order promulgated pursuant to its provisions, with the same force and validity as if served on him/her personally. Service of process may be made by leaving a copy of the service at the office of the Commissioner, but it shall not be effective unless:
(1) The plaintiff, who may be the Commissioner him/herself, in a suit, action or proceeding initiated by him/her, immediately sends notice of the service of process and a copy of the summons by registered mail to the defendant or respondent at his/her last known address, or takes other steps reasonably directed to obtain an effective notice, and
(2) the plaintiff’s affidavit of compliance with this subsection is filed in the case, on or before expiration of the term to reply, or within the additional term granted by the court.
(i) When a summons has been issued under this section, the court or the Commissioner, in a proceeding initiated before him/her, shall order such continuance as may be necessary to afford the defendant or respondent a reasonable opportunity to defend him/herself.
History —June 18, 1963, No. 60, p. 128, § 414; Aug. 11, 1996, No. 114, § 25.