reglab/statecodes huggingface dataset:
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) › § 1334w - Special premiums; use of reserves and capital

When the Corporation suffers extraordinary losses, it may impose a special premium on the insured cooperatives, which shall be distributed in the proportion that the annual premium paid by each of them holds to the total annual premium paid by all in the year of operations in which the extraordinary loss has been incurred. This special premium shall not exceed one hundred percent (100%) of the total premium collected in said year. When the special premium imposed in a specific year is not sufficient to cover the deficit in the operations of said year, the deficiency may be collected through the imposition, in subsequent years, of special additional premiums for as many years as it may be necessary and subject to the annual limit previously indicated. The Corporation may borrow money from any entity or public or private institutions and, when strictly necessary to handle its liquidity needs, may pignorate its future income proceeding from special premiums as collateral.
When the extraordinary losses are of such magnitude that they require the imposition of a special premium for a term greater than four (4) years, the Board shall impose a rate increase rather than a special premium. Premiums may not be raised in one (1) year of operations in order to pay extraordinary losses for a sum greater than one hundred percent (100%) of the premium that was in effect at the beginning of said year.
In the event that all the described mechanisms have been exhausted, and the resources generated are not sufficient to cover the losses, the following shall be in order:
(1) In the first place, the reserves balance shall be used until it has been exhausted.
(2) If there still is a deficiency to be covered, the capital shall be used up to fifty percent (50%) of the total accrued at the beginning of the year of operations.
(3) If there is still a deficiency, the resources of the Department of the Treasury shall be resorted to as provided in § 1335b of this title.
History —Aug. 17, 2001, No. 114, § 25.
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) › § 1334x - Funds; accounting system

All moneys of the Corporation, including its income from regular and special premiums, capital contributions, the income from investments, administrative fines, capital gains, loans, recovery of losses and any others, shall be deposited in the Fund. Disbursements chargeable to said Fund may only be made for the purposes established in this chapter, and, in every case, by request of the Executive President of the Corporation or of the officials authorized to do so, in the form and under the guarantees provided by law and in its regulations.
The Corporation shall establish to the extent possible, an accounting system in accordance with the generally accepted accounting principles (GAAP) for insurance companies in the public practice of accounting. Said system shall provide for the adequate identification of the source of the income and capital contributions as well as the nature of the charges against income.
All operating expenses of the Corporation, plus losses incurred, shall be charged annually against the income of the year from regular or special premiums, administrative fines, interest, and any other charges that are imposed pursuant to this chapter. If said income is not sufficient to cover the operating expenses plus the claims, up to twenty-five percent (25%) of the reserves shall be initially used to cover the deficiency. If the deficiency exceeds twenty-five percent (25%) of the reserves, action shall be taken as provided in § 1334w of this title.
The Corporation shall keep accounts that reflect the individual balance and aggregate of the capital contributed by the insured cooperatives and of the regular and special premiums paid by them, as well as the balance of the line of credit with the Government of the Commonwealth of Puerto Rico and with private institutions, if any.
History —Aug. 17, 2001, No. 114, § 26.
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) › § 1334y - Investment policy

The Board, upon consultation and with the advice of the Government Development Bank, shall adopt, within ninety (90) days following the date of approval of this act, the norms, criteria and procedures for the investment of the resources of the Corporation. In the adoption of said norms, criteria and procedures, the contingent nature of the shares and deposits insurance and the possibility that the Corporation could be forced to have to liquidate investments in order to make special unforeseen disbursements, shall be taken into consideration. In the measure that it is not inconsistent with the solvency and security of the Corporation or with the performance of its functions, the investment policy shall favorably consider the channeling of resources to entities of the cooperative movement with a proven financial and managerial condition. The norms to be adopted shall also establish the internal control systems that shall be observed to perform the transactions related to the investment of Corporation funds.
Investments may be made in cooperative enterprises not insured by the Corporation, provided the investment criteria and principles provided in this chapter are observed.
The deposits of the Corporation in financial institutions shall be treated as public funds and the financial institutions shall have to meet the requirements of law to receive them. For deposits in institutions classified by financial instruments evaluating agencies that are internationally recognized, the investment policy shall establish when the requirement of being considered as public funds may be waived.
With the advice of the Bank, the Corporation may modify these norms from time to time, as required by market conditions. Said Bank shall attend to the inquiries of the Board that impose unforeseen fluctuations and changes in the parameters that govern the financial markets promptly and with priority.
History —Aug. 17, 2001, No. 114, § 27.
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) › § 1334z - Administration of investments

The Board may contract the services of the Government Development Bank or those of a private person or entity to administer the investments of the Corporation pursuant to the investment policy and the terms adopted by the Board. Likewise, the Board may delegate this function on an investment officer of the Corporation.
The person or entity that is in charge of investment management shall render periodic investment reports to the Executive President at least once (1) a month. Likewise, he/she or it, shall render such other investment reports to the Board as often as required by the latter but at least every three (3) months. Said report shall itemize the following, in addition to any other data required by the Board:
(1) The purchase and sale of assets during the period corresponding to said report.
(2) The profits and losses of said purchases and sales.
(3) The interest earned during the period comprised in the report.
(4) The collaterals that have been placed as security and their estimated market value.
(5) The liquid resources available to handle unforeseen situations.
(6) The profits or losses that the Corporation would have if forced to liquidate financial assets to handle extraordinary losses.
History —Aug. 17, 2001, No. 114, § 28.
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) › § 1335a - Appropriations

When the Chairperson of the Board of the Corporation certifies that the Corporation does not have sufficient funds to honor a loan, he/she shall notify the certification to the Secretary of the Treasury, who is hereby authorized to disburse from the General Fund, with prior notice to the Director of the Office of Management and Budget, the money required for the payment of principal and interest of said loan. The sums borrowed or advanced plus the respective interest, shall be honored through an appropriation of funds to be included in the budget of the second fiscal year following the year in which said loans or advances were granted. The total of all disbursement of money made by the Secretary of the Treasury pursuant to the provisions of subsection (a) of § 1335 of this title, shall not exceed the sum of thirty million dollars ($30,000,000). This authorization to the Secretary of the Treasury shall remain in effect until the close of fiscal year two thousand and ten (2010). Provided, That the guarantee shall be reduced by the total amount of the capital of the Corporation. Provided, further, That in the event that in one (1) accounting year there is a reduction in the capital of the Corporation, the guarantee shall not increase to compensate for said reduction, and the guaranteed amount shall be the same as the previous year.
History —Aug. 17, 2001, No. 114, § 30.
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) › § 1335b - Availability of government resources

The Corporation is hereby authorized to borrow money from the Department of the Treasury of Puerto Rico. The Secretary of the Treasury is hereby authorized to loan to the Corporation, from any available funds, and subject to the terms that are mutually established, the funds that from time to time are requested by the Corporation to pay the securities established by the shares and deposits insurance. These loans shall be subject to an equal maximum amount, whichever is greater: (1) the sum that the Corporation has disbursed or encumbered, including reserves, capital, and the estimated actuarial value at the time of the petition of outstanding special premiums; or (2) the capital contributed by the insured cooperatives to the Corporation. The Corporation may require unlimited disbursements by fiscal year. The Corporation shall reimburse the funds loaned by the Government of the Commonwealth of Puerto Rico pursuant to the terms and conditions agreed upon with the Secretary of the Treasury at the time the loans are granted, but taking into account the needs of the Corporation for liquidity and resources. Said terms may include the pignoration of collaterals, including that of special premiums or future income from tax rates that are fixed pursuant to this chapter and whose collection has been deferred for future years.
History —Aug. 17, 2001, No. 114, § 31.
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) › § 1335c - Annual report of the corporation

The Corporation shall render an annual report on all its operations and activities to the Governor, the Legislature and the cooperatives, no later than thirty (30) days after the date it is approved by the Board. This report shall include the following:
(1) A financial statement certified by a certified public accountant.
(2) A statement of income and expenses for the corresponding report year.
(3) Itemized statements on the claims experience of the program during the year, including claims paid, those reported and unpaid, as well as an estimate of those incurred and not reported.
(4) A report of the investment papers and property deeds of the Corporation.
(5) Information on the liquidity of the program, the nature and quality of its collaterals and an evaluation that includes, among others, the data and statistical and financial indicators that are deemed necessary for the adequate interpretation of the actuarial condition of the shares and deposits insurance, and the result of its operations.
A copy of the annual report shall be submitted to the consideration of the Insurance Commissioner of Puerto Rico, who shall evaluate it and inform the Board of Directors and the Governor, of the deficiencies and recommendations he/she deems necessary regarding the financial situation of the Corporation and the sufficiency of the reserves.
History —Aug. 17, 2001, No. 114, § 32.
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) › § 1335c-1 - Annual report—Social investment of cooperatives

The Corporation shall render to the Governor and the Legislature, through the committees with jurisdiction over cooperatives issues an annual report stating the social investment of cooperatives in the socio-economic development of Puerto Rico at the end of each fiscal year not later than August 30 of each year. Said report shall be signed by the Executive President and endorsed by the Board of Directors.
Without it being construed as a limitation, the report to be rendered by the Corporation shall include a qualitative and quantitative compilation of the investment and social development elements of cooperatives in areas such as education, culture, sports, community interaction, the elderly, and the youth, among others. The scope, content, and structure of the report shall be established by the Board of Directors of the Corporation and the same shall include the participation, comments, and contributions of the different central bodies, associations, and cooperative entities of second and third degree of the Cooperative Movement.
Copy of the annual report shall be submitted to the consideration of the Cooperative League of Puerto Rico, which shall evaluate the same and shall inform the Corporation, the Governor and the Legislature, through those committees with jurisdiction over cooperatives issues of any deficiencies and recommendations it deems necessary with regard to the social investment of cooperatives in the socio-economic development of the Island.
History —Aug. 17, 2001, No. 114, added as § 32-A on Sept. 20, 2007, No. 123, § 1; June 2, 2008, No. 80, § 1.
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) › § 1335d - Annual assembly

The Corporation shall hold an annual informative assembly of all insured cooperatives within ninety (90) days following the closing of its annual operations. The annual report mentioned in § 1335c of this title shall be discussed in this assembly. If there were causes that prevent the holding of the assembly within said period, the Board may, with the approval of two thirds (2 / 3) of its members, postpone the holding thereof for a maximum period of one hundred and twenty (120) days.
History —Aug. 17, 2001, No. 114, § 33.
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) › § 1335e - Failure to render reports

Every insured cooperative that without just cause fails to file, correct, or publish the reports required by this chapter, or fails to pay the premiums or contribute the capital required by this chapter, within the term of thirty (30) days counting from the date on which the Corporation requires the same, shall be subject to an administrative fine of not more than one hundred dollars ($100) for each day it fails to comply with said obligation.
History —Aug. 17, 2001, No. 114, § 34.
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) › § 1335f - Violation of regulations

Every insured cooperative that fails to comply with the norms and regulations adopted by the Corporation pursuant to this chapter, shall be subject to the payment of an administrative fine that shall not exceed one hundred dollars ($100) for each day that said noncompliance subsists.
History —Aug. 17, 2001, No. 114, § 35.
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) › § 1335g - Supervision and auditing

The assets, accounts, disbursements, funds and income of the Corporation shall be subject to supervision and to the audits conducted by the Office of the Comptroller of the Commonwealth of Puerto Rico.
History —Aug. 17, 2001, No. 114, § 36.
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) › § 1335h - Continuity of operations

(a) The Corporation shall maintain its juridical, operational and financial existence in a continuing and uninterrupted manner, being subject to the provisions of this act, as of its approval, regardless of the repeal of Act No. 5 of January 15, 1990.
(b) The regulations, orders, agreements, administrative procedures, contracts and other actions of the Corporation adopted and initiated prior to the approval of this act, shall remain in effect until the same are modified in accordance to the provisions of this chapter.
History —Aug. 17, 2001, No. 114, § 40.
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 II - Authorized Powers and Activities (§§ 1362 — 1362g) › § 1362 - Goals and purposes

Savings and credit cooperatives have as their primary purpose, to promote, through the cooperative movement, full access to financial services, to act as regulator of prices, educate their members on the best management of their personal and family finances, promote gainful activity through self-employment, self-enterprise and the support of small enterprises, and the development of leaders to for the promotion of the cooperative movement and of the communities. In order to achieve these purposes, cooperatives must:
(a) Promote the development and support of the cooperative movement and divulge its philosophy through educational programs;
(b) encourage the habit of saving and the prudent use of credit in the people, by providing education on personal and family budgets, handling of personal finances, prevention of bankruptcy, and others;
(c) develop educational programs addressed toward the technical training and development of volunteer leaders, professional leaders, and employees of cooperatives;
(d) offer financial services to any person, whether or not they are members of the cooperative, under the most favorable terms and conditions within the conditions of the market;
(e) extend their capacity to serve in order to become the center of financial services for Puerto Rican families, and
(f) encourage the establishment and operation of other cooperative enterprises, especially those that propitiate employment and agricultural, industrial, and livestock production, and those related to consumerism, housing and transportation.
History —Oct. 28, 2002, No. 255, § 2.01.
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 II - Authorized Powers and Activities (§§ 1362 — 1362g) › § 1362a - Loans and financial services—Members

Every cooperative shall have the power to grant loans and offer their members the financial services listed below:
(a) Accept, receive and manage all types of deposits by persons and private and public entities, and offer all such depositary services that are allowed to the depositary financial institutions, including:
(1) Savings accounts, checks, deposit certificates and other instruments, all of which, with or without interest;
(2) facilities or services for electronic transfer of funds, and other electronic banking services, including debit cards and any other electronic payment means, and
(3) receipt and management of deposits and individual retirement accounts (IRA) and other trust funds, in special accounts or for the payment of services.
(b) Grant financing of all types subject to the policies in § 1366b of this title, including:
(1) Personal loans and lines of credit with or without collateral;
(2) loans for the acquisition of new or used motor vehicles;
(3) loans for the acquisition of chattels with or without chattel mortgages;
(4) mortgage loans of all types;
(5) student loans that may be secured by any agency of the Government of the Commonwealth of Puerto Rico or of the Government of the United States;
(6) loans in the form of credit card services for the purchase of goods, payment of services, and for the granting of limited cash credit;
(7) loans for the financing of insurance premiums and policies;
(8) collateralized commercial loans, subject to the adoption and effectiveness of credit evaluation policies and procedures specifically adopted for commercial financing, implemented through commercial credit officials duly trained for said function, and
(9) financing of chattel leasing contracts subject to applicable legal provisions.
(c) As authorized by the Corporation through regulations or administrative determination, cooperatives of adequate condition may render all other services not covered in subsections (a) and (b) of this section, that are permitted to other financial institutions and their subsidiaries. When evaluating any petition for authorization, as well as upon adopting regulations under this subsection, the Corporation shall guarantee equitable and competitive participation of the cooperatives in the markets of the respective services in question and may require, through regulations, the designation or contracting of specialized resources, duly trained in rendering the services in question. The Corporation may require that the authorized services be rendered in a segregated manner through subsidiaries if it is required of other depositary institutions by applicable laws or regulations.
History —Oct. 28, 2002, No. 255, § 2.02.
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 II - Authorized Powers and Activities (§§ 1362 — 1362g) › § 1362b - Loans and financial services—Non-members

(a) Every cooperative may offer the following products and services to persons who are not members:
(1) Personal loans up to the maximum amount and under the terms and conditions allowed pursuant to §§ 941 et seq. of Title 10, known as the “Small Personal Loans Companies Act”, and
(2) all financial services available to members as provided in § 1362a of this title, provided that the loans that are offered do not exceed the sum of those liquid assets that the debtor maintains in the cooperative or that secure one hundred percent (100%) of the loan. For the purposes of this section, the following are deemed to be liquid assets, provided they are subject to a duly constituted lien and validated in favor of the cooperative:
(A) Assets of members that are not committed with loans granted by the cooperative;
(B) deposit[s] or negotiable securities accounts that are kept in financial institutions authorized to operate in Puerto Rico, and
(C) insurance policies or unearned premiums of insurance policies issued by insurance companies authorized to do business in Puerto Rico, whose premiums secure the unpaid balance of the loan.
(b) The cooperative may adopt different interest structures, charges and prices for members and non-members.
History —Oct. 28, 2002, No. 255, § 2.03.
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 II - Authorized Powers and Activities (§§ 1362 — 1362g) › § 1362d - Authorization—Branches and service offices

(a) Branches. — Cooperatives may establish branches in mobile units or permanent establishments, provided they fulfill the provisions and procedures of this chapter and its regulations and, in every case, with the prior approval of the Corporation. Every cooperative that wishes to obtain an authorization to establish a branch, whether mobile or permanent, shall file an application with the Corporation in which it shall state the exact address of the place where the branch is to be located or where the mobile branches are to be operated.
(b) Service offices. — An adequate cooperative may establish service offices, provided it notifies the Corporation of the establishment thereof. The establishing of a service office shall be deemed to be approved if the Corporation does not file an objection within thirty (30) calendar days from the date the notice of the cooperative is received. The objection by the Corporation shall expressly indicate its specific grounds, in which case the process to establish the service office shall be detained until tile objection is withdrawn. The cooperatives that are not adequate, may establish service offices subject to the prior approval of the Corporation.
(c) Relocation of branches and service offices. — An adequate cooperative may relocate its branches and service offices, provided the Corporation is notified of said transfers. The transfer shall be considered as approved if the Corporation does not file an objection within thirty (30) calendar days following receipt of the notice. The objection by the Corporation must expressly indicate its specific grounds, in which case, the relocation process shall be detained until the objection is withdrawn. Cooperatives that are not adequate may locate their branches and service offices subject to the prior approval of the Corporation.
(d) [Notification]. — Every notification and every application for prior approval required under this section shall be submitted in writing and signed by an official authorized for such matters, and shall contain such information that the Corporation shall provide by regulations. The Corporation shall adopt objective parameters for the evaluation of the applications through regulations.
History —Oct. 28, 2002, No. 255, § 2.05.
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 III - Organization of Savings and Credit Cooperatives (§§ 1363 — 1363e) › § 1363 - Organization

Except for the provisions of § 1362e of this title, five (5) or more natural persons, of legal age and residents of the Commonwealth of Puerto Rico, may act as incorporators of a cooperative organized pursuant to this chapter. The incorporation process shall be carried out through the signing of a document that contains the incorporation clauses and the general regulations, both of which agree with the provisions of this chapter, §§ 1334 et seq. of this title, and the regulations adopted thereby. Prior to the presentation of documents required above, every group that desires to organize as a cooperative shall receive the advice of the Corporation on the applicable financial and regulatory requirements for the establishment of the new entity, and the guiding principles of the cooperative movement. This guidance shall be offered by Cooperative Development Administration or shall be contracted by the Corporation with the Cooperative League.
The philosophic grounds of the cooperative movement and their application through the organization and operation of savings and credit unions, are a most essential part of the requirements prior to the organization of a cooperative. The financial and regulatory requirements arise from a clear understanding that the cooperative movement is a distinct and peculiar economic activity that is based on principles that are unique to this type of organization.
The organization of a new cooperative entity shall require an affirmative determination of the Corporation to the effect that it is necessary and convenient for the population it shall serve, and shall not unduly affect the existing cooperatives, thus contributing to the orderly and adequate development of the cooperative movement in Puerto Rico. The Corporation is hereby empowered to adopt, through regulations, the evidence, documentation and information that shall be required from the proponents, and the criteria that the Corporation shall use to execute the determination required by this section. Except in the case of entities organized or controlled by cooperatives, at the close of the first six months of existence, every cooperative shall have at least thirty-five (35) members who have no direct family ties within the fourth degree of consanguinity, or second of affinity.
With the exception of the second-degree cooperatives whose shareholders, partners and/or depositors are, exclusively, ensured cooperatives, every cooperative organized pursuant to this chapter must subscribe to the insurance offered by the Corporation.
History —Oct. 28, 2002, No. 255, § 3.01.
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 III - Organization of Savings and Credit Cooperatives (§§ 1363 — 1363e) › § 1363a - Corporate clauses

The document of the corporate clauses shall be sworn to by all the incorporators before a notary public and shall include the following information:
(a) Official name of the cooperative, which shall include the words “Savings and Credit Cooperative” or the initials “Coop” or “SCC”. No cooperative shall adopt a name that is similar or alike to that of a previously established cooperative. This provision shall in no way limit the power of the cooperatives to adopt and use commercial names, individually or jointly among themselves, regarding their operations, services or products, or those of their subsidiaries or affiliates, all of which is subject to compliance with applicable laws.
(b) Exact address of the place where the main office of the cooperative to be organized shall be established.
(c) Objectives or purposes for which it is organized.
(d) Par value of the shares, which shall not be less than ten dollars ($10) each.
(e) Name, address and personal status of the incorporators, as well as the number of shares subscribed by each of them.
(f) Number of partners with which the cooperative shall commence operations.
(g) Number of shares with which the cooperative shall initiate operations, which shall not be less than fifty thousand dollars ($50,000), with the exception of closed cooperatives in which the number of shares could be less.
History —Oct. 28, 2002, No. 255, § 3.02.
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 III - Organization of Savings and Credit Cooperatives (§§ 1363 — 1363e) › § 1363b - Incorporation procedures

The incorporators of the cooperative shall submit to the Corporation two (2) copies of the document of the incorporation clauses, and an internal revenue receipt in the amount that the Corporation shall establish by regulations. They shall also present the original document of the general regulations of the cooperative, signed by the provisional members of its Board, verified before a notary public, and include two (2) plain copies thereof.
The Corporation shall examine and evaluate the incorporation clauses and the general regulations of the Cooperative, to determine if they meet the requirements established in this chapter and the regulations adopted by virtue thereof. Once its compliance with the statutory incorporation requirements has been verified, the Corporation shall submit the incorporation clauses and the internal revenue receipt to the Secretary of State for its registration. Likewise, it shall return the original of the general regulations to the cooperative, and shall retain a copy of the incorporation clauses document and a plain copy of the general regulations, for its files.
The Secretary of State shall issue the certificate of incorporation and the Corporation shall issue the permit to operate the cooperative, once it qualifies and obtains a written certificate to avail itself of the deposits and shares insurance provided by the Corporation.
History —Oct. 28, 2002, No. 255, § 3.03.
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 III - Organization of Savings and Credit Cooperatives (§§ 1363 — 1363e) › § 1363d - Organization by districts

Cooperatives may organize by districts, if it is thus provided in their general regulations. In such cases, the general regulations shall provide that the participation of the members shall be directed through duly elected delegates constituted in an assembly of delegates. The general regulations shall also establish the number of delegates to be elected for each district and the directors at large to be elected to the Board of Directors in representation of the assembly of delegates. The Corporation shall be advised of the way that the districts shall be constituted.
History —Oct. 28, 2002, No. 255, § 3.05.
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 III - Organization of Savings and Credit Cooperatives (§§ 1363 — 1363e) › § 1363e - Amendments

The corporate clauses and the general regulations of the cooperative may be amended at any general regular or extraordinary assembly. The amendments must be approved by a two-thirds vote of the members present, and in the case of cooperatives organized by district, with the vote of two-thirds (2 / 3) of the delegates present.
The Board shall notify all the members of the cooperative of the holding of the assembly that shall consider amendments to the general regulations or the corporate clauses, at least twenty (20) days beforehand. Said notice shall expressly indicate the intention of amending the general regulations or the incorporation clauses, identify the sections or articles of the regulations that shall be subject to amendments and the nature thereof, and indicate that a complete copy of the texts of the proposed amendments shall be available, free of charge, to every member in any of the branches and service offices of the cooperative, as of the notice, and also at the entrance to the assembly. In the case of the cooperatives organized by districts, the complete texts of the amendments shall be remitted to the delegates along with the notice of the proposed amendments, and all members shall be guaranteed the opportunity to present their viewpoints on the proposed amendments in their respective district assembly, if it has been convoked, or through its delegates in the assembly of delegates.
The original and two (2) copies of the amendments to the corporate clauses, or the general regulations, duly certified by the Secretary of the cooperative, shall be filed before the Corporation, along with a certification signed by the Chairperson of the Board of Directors, to the effect that the amendments are consonant with the provisions of this chapter, §§ 1334 et seq. of this title, and the regulations adopted by virtue thereof. Once they are filed before the Corporation, the cooperative shall submit the amendments to the corporate clauses to the Secretary of State for registration. Provided, That they shall become effective on the date of said registration. In the case of the amendments to the general regulations, they shall be filed in the cooperative’s files as soon as they are received by the Corporation, and shall become effective on the date of said registration. In the case of amendments to the general regulations, they shall be filed in the cooperative’s files as soon as they are received by the Corporation, and shall become effective on the registration date.
History —Oct. 28, 2002, No. 255, § 3.06.
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 IV - Members (§§ 1364 — 1364f) › § 1364 - Requirements

In addition to the incorporators, every person, other than a profitable juristic person, that meets the requirements established in the incorporation clauses and the general regulations of the cooperative, may be a member of a cooperative. Minors may be members of a cooperative, subject to the limitations established in the laws of Puerto Rico and the general regulations of the cooperative. Periodic contributions to the capital account, as provided in the general regulations of the cooperative, shall be an essential condition for membership.
The admission of a person as a member of a cooperative shall not be refused or barred, due to race, sex, religion or political beliefs, or social or economic condition, and the eligibility of members may be defined by like groups in the exercise of the constitutional right to free association. The Board may refuse the admission of a person as a member of the cooperative when there are grounds to believe that said person can injure or obstruct the attainment of the goals and purposes of the cooperative, or has been expelled as a member, or has been removed from any office on the board of directors of any other cooperative entity.
History —Oct. 28, 2002, No. 255, § 4.01.
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 IV - Members (§§ 1364 — 1364f) › § 1364a - Rights

The members of every cooperative shall have the following rights and prerogatives:
(a) Participate with voice and vote in the general assemblies of members, on a basis of mutual respect, equality and decorum;
(b) elect and be elected to office on the board of directors of the cooperative;
(c) use the cooperative’s services;
(d) keep informed of the financial status of the cooperative and the operations and activities it conducts, through the corresponding reports. By means of a sworn statement that consigns [sic] its purpose, a member shall have the right to examine the roster of members and other books of the cooperative, as well as to make copies or extracts thereof, during regular office hours, for purposes related to his/her interests as a member; Provided, That no member shall have the right to access information that by provisions of law or applicable regulations is confidential or privileged, including information that constitutes business secrets or strategies. In case of a controversy on the legitimacy of the purposes of the member or of the confidentiality or privilege that binds the information requested, the controversy shall be adjudicated by the Corporation;
(e) ascertain the status of his/her accounts, assets, and transactions in the cooperative;
(f) share equitably in the distribution of surplus, if any, according to the policies approved by the general assembly, and
(g) upon becoming a member, receive a copy of the regulations of the cooperative, the documents it provides, and the standards of operation of the cooperative.
The rights and prerogatives of a partner provided in this section, as well as those that are recognized for them in the general regulations of the corporation shall remain in suspense in all cases in which the member is not up to date in the payment of his/her obligations and debts with the cooperative, including the payment of the loans of which he/she is co-maker, and the acquisition of shares required by the general regulations.
History —Oct. 28, 2002, No. 255, § 4.02.
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 IV - Members (§§ 1364 — 1364f) › § 1364b - Obligations

Every member of a cooperative shall have the following obligations with regard to the same:
(a) Comply with the corporate clauses, the general regulations and the obligations imposed by this chapter;
(b) make the periodic contributions to the share account as provided by the general regulations of the cooperative. The cooperatives shall be authorized to include the periodic payments of said shares as required in the general regulations as part of the payment of loans that are granted to the members and make direct discounts from the deposit accounts to make said contributions;
(c) protect the interests of the cooperative and the good credit and public trust thereof;
(d) fulfill every contract, covenant, commitment, or social or pecuniary obligations contracted with the cooperative, and
(e) perform the functions of the office for which he/she is elected or designated, responsibly, and punctually attend the meetings of the committees to which he/she belongs.
History —Oct. 28, 2002, No. 255, § 4.03.
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 IV - Members (§§ 1364 — 1364f) › § 1364c - Registry

Every cooperative shall keep and maintain an updated register or list of members, which shall include the following items:
(a) Name, address and occupation of each of the members whose credentials and identity must be verified;
(b) number of shares owned by each member with their corresponding numbers, if available, and the amount paid on said shares, and
(c) exact date the person became a member of the cooperative.
It shall also keep updated information, in a separate register, on the depositors and persons who are not members, but who receive services of the savings and credit cooperative.
History —Oct. 28, 2002, No. 255, § 4.04.
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 IV - Members (§§ 1364 — 1364f) › § 1364d - Voluntary resignations

Every member of a cooperative may voluntarily withdraw from it at any time, in which case the member must give written notice to the Board in advance, as required by the general regulations. This notice shall be considered by the Board or by the officials, executive officers or employees, on whom said function is delegated. When the retiring partner holds an office on the Board, or on any committee, or is an executive official of the Cooperative, the withdrawal of his/her assets shall be subject to the provisions of § 1366e of this title.
Partners who retire voluntarily from a cooperative shall be liable for all debts and obligations pending therein on the date of his/her resignation.
History —Oct. 28, 2002, No. 255, § 4.05.
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 IV - Members (§§ 1364 — 1364f) › § 1364f - Transfer of shares

(a) By the members. — The shares kept by the members in a cooperative shall be susceptible for sale, cession, gift, and any other transfer of rights or title by a member, subject to the following conditions:
(1) The transfer shall be made solely in behalf of the persons that are eligible to be members of the cooperative.
(2) The transfer shall be made through an authentic, dated document. For the transfer to be effective, said document shall be presented to the cooperative to be entered in the register of members. In the event that the transfer is made to a person who is not eligible to be a member, who presents any of the causes to permit the expulsion of members, or has, in fact, been expelled as a member of a cooperative, the institution may reject the transfer, and proceed to notify its determination to the parties involved.
(3) All transfers of shares that could affect, reduce or impair the lien, protection or guarantee of loans and other obligations with the cooperative shall be null, unless they have the express written approval of the institution.
(4) The shares held by the members in a cooperative shall always be susceptible to all the liens, restrictions and obligations to which they were subject prior to the transfer.
(5) The shares maintained by the members in a cooperative shall be susceptible to sale, cession or transfer by the cooperative in the event of a sale of loan portfolios, or transactions for the sale of assets and assumption of liabilities, subject to authorization by Corporation. In such cases, the shares of the transferring cooperative could be converted to shares of the acquiring cooperative, being subject to the provisions of the general regulations of said entity.
History —Oct. 28, 2002, No. 255, § 4.07.