reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4508 - Corporate reserve

The articles, bylaws or the Board of Directors shall govern the amount to be set aside to nourish the corporate reserve, but said amount shall not be less than ten percent (10%) of the net savings, until the amount accrued in said reserve is equal to thirty percent (30%) of the book value of the tangible assets of the cooperative.
The corporate reserve of the cooperative is non-distributable, and therefore, neither the members nor those who have resigned or been excluded, nor in the case of natural person, the heirs thereof, have the right to claim or receive any portion of it. Any charge against this reserve shall be for an emergency of the cooperative through previous authorization of the Board of Directors and the supervision committee, and shall be reported in the next assembly of members; Provided, That in such case, the approval of the inspector shall be required.
History —Sept. 1, 2004, No. 239, § 19.8.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4509 - Service reserve

The service reserve shall be nourished by ten percent (10%) of the net savings of the cooperative.
The service reserve shall be used for:
(a) The education of members and non-members, and
(b) community services.
The Board of Directors shall determine how this reserve is to be used within the above mentioned alternatives.
History —Sept. 1, 2004, No. 239, § 19.9.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4510 - Investments

The external investments of the cooperative shall be preferably made in other cooperative organizations.
The cooperative may also make its investments in the following manner:
(a) In bank accounts or institutions insured by the Federal Deposit Insurance Corporation, or in cooperative savings and credit unions insured by the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico, or in any other entity insured by banking insurance institutions of the federal government or of the Commonwealth of Puerto Rico;
(b) in bonds of the Commonwealth of Puerto Rico or the United States of America;
(c) in bonds or stocks of government corporations of the Commonwealth of Puerto Rico and the United States of America;
(d) in entities which meet the requirements for trusts, and
(e) in shares and securities of any organization whose activities are in accordance with the operations of the cooperative.
History —Sept. 1, 2004, No. 239, § 19.10.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4511 - Power to contract

Cooperatives may enter into any type of contract which is convenient or proper to achieve their ends and purposes.
History —Sept. 1, 2004, No. 239, § 20.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4512 - Contract as a requirement

As a condition of membership or as a condition to extend their activities to non-members, cooperatives may establish that a contract be entered into to regulate the business or service relations between the interested parties.
History —Sept. 1, 2004, No. 239, § 20.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4513 - Marketing contract

Every contract in which the cooperative is the agent of a member for the purpose of marketing the products or goods of the member may stipulate that the aforementioned transfers to the cooperative his/her fee simple ownership rights of the goods which are the subject to the contract. Said contract shall allow the cooperative to encumber the goods in question in the measure it may deem convenient in order to achieve the ultimate purpose of the contract. Such a contract may be in effect for a maximum term of ten (10) years.
History —Sept. 1, 2004, No. 239, § 20.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4514 - Loan capital

The articles of incorporation or the bylaws may provide for the creation of loan capital in favor of the cooperative.
Said loan capital shall be collected through the cash contribution of members, through savings or interest accrued by the members in their transactions with the cooperative. The maximum limit of the contributions or investments of the members shall be fixed in the articles or the bylaws. If the contract between the cooperative and the member does not stipulate a fixed date for withdrawal nor include any other limiting provision, the member may withdraw his/her investment at any time. Should the Board of Directors deem that said withdrawal is prejudicial to the operations of the cooperative, it may require a term of not less than ninety (90) days to execute the same.
History —Sept. 1, 2004, No. 239, § 20.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4515 - Loan contract

Any cooperative whose articles allow it may grant loans to members. The loan application shall indicate the purpose for which it is being requested, the security offered and any other information deemed pertinent.
The loan shall be secured by a promissory note drafted according to the instructions of the Board. Its signatories shall be deemed to be joint debtors. The cooperative may accept other securities.
The debtor may pay his/her loan, in whole or in part, during the working hours of the cooperative.
History —Sept. 1, 2004, No. 239, § 20.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4516 - Cooperatives do not restrict business

Cooperatives organized under this chapter shall not be considered to be conspiracies or cartels to restrict business, nor as illegal monopolies due to their contracts, business or activities; Furthermore, they shall not be considered to have been organized for the purpose of reducing competition or of fixing prices arbitrarily, nor shall the contracts entered between the same and their members and other sponsors, nor other authorized contracts or contracts entered by virtue of this chapter, be interpreted as illegal restrictions of business and as parties to a conspiracy or cartel to carry out an improper or illegal purpose and act.
History —Sept. 1, 2004, No. 239, § 20.5.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4517 - Surplus

After the reserves are set aside, the cooperative, except for housing cooperatives, may distribute the remainder or surplus of its net savings at the close of the fiscal year, or capitalize it. Said distribution must be carried out on the basis of sponsorship and by shares.
History —Sept. 1, 2004, No. 239, § 21.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4518 - Calculation of sponsorship

In calculating sponsorship, the market price, time invested, weight, amount, or any other reasonable measure may be used to determine the value of a service or an article. The determination regarding this matter shall be made by the Board of Directors of the cooperative. This section does not apply to housing cooperatives.
History —Sept. 1, 2004, No. 239, § 21.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4519 - Issuance

The cooperative shall not issue any stock or contribution certificate until the same has been paid in full.
History —Sept. 1, 2004, No. 239, § 22.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4520 - Notice of withdrawals

The cooperative may require that any deposit withdrawal notice be made thirty (30) days in advance; and that the withdrawal of shares or contributions be notified ninety (90) days in advance.
History —Sept. 1, 2004, No. 239, § 22.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4521 - Liquidation of the member’s participation

In case the retirement, death or separation of a member, the cooperative shall pay him/her, his/her authorized representative, beneficiaries or heirs, as the case may be, the amount of money equivalent to his/her contribution, plus any sum on account of interest accrued by the member in the cooperative within ninety (90) days of his/her retirement, death or separation. The cooperative shall also be diligent in paying the declared dividends and in carrying out any transaction with regard to life insurance policies carried by the person who has ceased to be a member. Any outstanding debt of the member with the cooperative must be deducted from said payment.
In the case of the death of a member, the cooperative shall comply with the provisions of the Civil Code of Puerto Rico regarding matters of bequests and estates, with the exception of a claim of money for funeral expenses. Provided, That the administration of the cooperative may disburse, at the request of an authorized person, up to a maximum of one thousand dollars ($1,000) to defray funeral expenses of the deceased member. The administration of the cooperative shall submit to the Board of Directors the claim for the assets of the deceased member for its consideration in the next regular meeting once the relative has remitted the following documents: a sworn statement declaring the relationship of the petitioner with the member; death certificate; and funeral parlor invoice. The corresponding payment shall be made out in the name of the funeral parlor that rendered the services.
History —Sept. 1, 2004, No. 239, § 22.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4522 - Postponement of payment

When a cooperative has a capital deficit, or if its financial situation does not allow for it, it may postpone the payment corresponding to the withdrawal of membership in the cooperative for a period not to exceed two (2) years, except for life insurance payments.
History —Sept. 1, 2004, No. 239, § 22.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4523 - Withdrawals by members of the governing bodies

No director, officer, committee member or member of the cooperative who is participating directly in the administration of a cooperative may make withdrawals of shares or contributions, unless the cooperative enjoys a solid financial condition and has the approval of the Board of Directors, the supervision committee and the credit committee, should there be one.
History —Sept. 1, 2004, No. 239, § 22.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4524 - Nullity of withdrawals

Any withdrawal of shares or contributions of a member made within ninety (90) days prior to a declaration of insolvency of the cooperative shall be null and void. Any member who has withdrawn contributions during said period shall continue to be liable to the creditors of the cooperative for the value of said contributions.
History —Sept. 1, 2004, No. 239, § 22.5.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4525 - Property tax exemption

(a) The cooperatives, their subsidiaries or affiliates, as well as their income from all their activities or operations, all of their assets, capital, reserves and surplus, and those of their subsidiaries or affiliates shall be exempted from the payment of all types of income tax, property taxes, excise taxes, municipal licenses fees and any other tax imposed or to be imposed in the future by the Commonwealth of Puerto Rico or any of its political subdivisions.
(b) All the shares and securities issued by the cooperatives and by any of their subsidiaries or affiliates shall be exempt, both in their total value as well as in the dividends or interest paid thereto, from the payment of any type of income tax, property tax, excise tax, municipal license or any other tax imposed or to be imposed in the future by the Commonwealth of Puerto Rico or any of its political subdivisions.
(c) Cooperatives, their subsidiaries or affiliates, as well as the income derived from their activities and operations, all of their assets, capital, reserves, and surplus, and those of their subsidiaries or affiliates shall be exempt from all types of income, property and excise taxes, as well as license fees and any other levy imposed or to be imposed in the future by the Commonwealth of Puerto Rico or any political subdivision thereof, except for the sales and use tax established in §§ 32021 and 32022 of Title 13, the tax authorized by § 33344 of Title 13, the taxes imposed under §§ 32281, 32282 and 32283 of Title 13, the value-added tax established in § 32211 of Title 13, and excise taxes imposed under §§ 31621-31634 of Title 13, known as the “Internal Revenue Code for a New Puerto Rico”.
(d) The tax exemptions granted to the subsidiaries or affiliates of the cooperatives pursuant to this section shall apply while said subsidiaries or affiliates are under the control of one (1) or more cooperatives.
History —Sept. 1, 2004, No. 239, § 23.0; June 30, 2013, No. 40, § 5; Sept. 30, 2015, No. 159, § 37.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4526 - Unclaimed accounts

The money and other liquid assets in the custody of a cooperative that are not claimed or which have been subjected to any transaction in the previous five (5) years shall be transferred to a corporate capital reserve of the cooperative or to its indivisible capital item, at the option of the cooperative. For purposes of this section, neither the imposition of service charges nor the payment of interest or dividends shall be considered as a transaction or activity in the account. Ninety (90) days prior to the transfer of these liquid assets to the aforementioned reserves, the cooperative shall publish a notice in its branches and service offices with a list of the accounts that shall be subject to transfer. During said ninety (90) day term, the list shall be available for the review by any member and the general public. Any person who, during the aforementioned ninety (90) day term, presents attesting evidence of ownership of one or more of the accounts identified in the list shall be entitled to have said accounts withdrawn from the list and not to be transferred to the capital reserves. After the transfer of an account or liquid assets into the capital reserves has been made, only those claims presented no later than two (2) years after the transfer shall be admitted. In such cases, the cooperative may impose the corresponding administrative charges for the investigation and analysis transactions conducted regarding the claim.
Pursuant to these provisions, the cooperatives, their accounts of shares and deposits and their reserves shall be exempt from the provisions §§ 2101 et seq. of Title 7, known as the “Abandoned or Unclaimed Money and Other Liquid Assets Act”.
History —Sept. 1, 2004, No. 239, § 23.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4527 - Unattachable property

The contribution of members of the cooperatives and their corresponding interest, whether capitalized or not, shall be deemed as unattachable property, except by the cooperative itself.
History —Sept. 1, 2004, No. 239, § 23.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4528 - Goods and services transactions

The Commonwealth Government and the municipal governments may sell, lease, exchange or otherwise transfer to those cooperatives organized pursuant to the laws of Puerto Rico, real property belonging to said governments without being subject to the requirement of a bid in those cases in which it is a requirement of law, provided that it is for a reasonable price.
Property thus acquired, and in the event the cooperative wishes to sell it, shall first be offered for resale to the Government, which shall have thirty (30) days to inform the cooperative of its intention to reacquire said property.
The Commonwealth Government and the municipal governments may purchase, lease, exchange or otherwise, obtain goods and services offered or produced by the cooperatives without being subject to the requirement of a bid, in those cases in which it is a requirement of law.
The Commonwealth Government and the municipal governments shall exempt cooperatives from the payment of rent for the use of the facilities in the offices of the different agencies, instrumentalities and public corporations.
History —Sept. 1, 2004, No. 239, § 23.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter X - Business and Finances (§§ 4500 — 4529) › § 4529 - Collection of fees

The Secretary of State of Puerto Rico shall charge and collect the following duties in favor of the Commonwealth of Puerto Rico, in internal revenue stamps, for filing in his/her office any certificate or any documents related to the cooperatives referred to in this chapter:
(a) For receiving, filing and registering the articles of incorporation or amendments thereto $10
(b) person $2.00For the issue of certificates of registration as a juridical
(c) For filing certificates of dissolution agreements $2.00
(d) For the issue of certificates of dissolution $2.00
(e) For issuing a copy of any filed document or paper pertaining to associations of this type, ten cents ($0.10) for every hundred (100) words.
(f) For certifying the aforementioned copy and for affixing the stamp of the Commonwealth of Puerto Rico $1.00
History —Sept. 1, 2004, No. 239, § 23.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4530 - Merger

Two (2) or more cooperatives organized under this chapter may merge. On doing so, one (1) or more cooperatives shall transfer its (their) name, assets and other properties and rights to the other cooperative, which shall be the one remaining in existence as a recognized juridical entity.
History —Sept. 1, 2004, No. 239, § 24.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4531 - Consolidation

Two (2) or more cooperatives may consolidate, in which case, the two (2) or more cooperatives shall form a new cooperative entity different from those existing before, which shall be in charge of their assets and liabilities.
History —Sept. 1, 2004, No. 239, § 24.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4532 - Voting

The cooperatives may merge or consolidate with the affirmative vote of two-thirds (2 / 3) of the members present at an assembly, duly called and constituted for that purpose. In the case of cooperatives organized by districts, the aforesaid shall apply to the assembly of delegates.
History —Sept. 1, 2004, No. 239, § 24.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4533 - Bill of agreement

A bill of agreement for the merger or consolidation of the cooperatives shall be distributed among all the members of each cooperative together with the summons to said assembly. The bill shall establish the terms and conditions of the merger or consolidation, the manner in which it shall be carried out, and the way in which the capital is to be represented, the rights and obligations of the members and directors, and all other details and provisions which the directors may deem necessary or pertinent in order to perfect the merger or consolidation.
History —Sept. 1, 2004, No. 239, § 24.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4534 - Registration transaction

Should the cooperatives that merge or consolidate approve said agreement, the President and the Secretary of each cooperative shall certify, under oath, the resolution approved to that effect. Said resolution, thus approved and certified, shall be submitted with three (3) copies to the Inspector of Cooperatives, together with the merger agreement signed by the President and the Secretary of each of the cooperatives for its final approval.
Should the Inspector of Cooperatives determine that said merger or consolidation was executed pursuant to the provisions of this chapter, he/she shall submit the original of the resolution approving the agreement to the Department of State, for its registration, together with the pertinent incorporation and cancellation documents within sixty (60) days after the agreement was filed. The Inspector shall retain in his files the original agreement, a copy of the resolution approving said agreement, and a copy of the certificate of registration.
Should the Inspector of Cooperatives determine that the provisions of this chapter have not been met, he/she shall notify his/her decision to all cooperatives concerned. The inspector shall notify his/her decision to reject it within thirty (30) days after having received said documents, and shall state the reasons for rejection in his/her notice.
History —Sept. 1, 2004, No. 239, § 24.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4535 - Superior integration—General provision

Cooperatives may associate among themselves in order to exchange services, to execute contracts and hold activities, to complement business transactions and comply in the best way possible with their corporate goals, and in brief, to fulfill the principles of cooperative integration.
History —Sept. 1, 2004, No. 239, § 25.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4536 - Superior grade cooperatives—Organization

Cooperatives may constitute second level or superior grade cooperatives, or enter into association with them by means of resolutions by two-thirds (2 / 3) of the incumbent directors of the Board of Directors.
They may also become associated with similar organizations and with non profit associations.
Second or superior grade cooperatives thus organized shall be governed by the provisions of this chapter and shall be registered at the Department of State.
History —Sept. 1, 2004, No. 239, § 25.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4537 - Superior grade cooperatives—Integration organizations

The following are superior grade cooperative organizations:
(a) Central cooperatives;
(b) cooperative federations, and
(c) the League of Cooperatives of Puerto Rico.
History —Sept. 1, 2004, No. 239, § 25.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4538 - Norms for the integration organizations

The following shall be officially recognized as juridical persons pursuant to the present chapter:
(a) The League and the federations may be members of international cooperative organizations;
(b) may carry out financial activities compatible with their needs and functions as a means of achieving their ends;
(c) shall have boards or general assemblies of delegates as sovereign bodies and shall be composed of the delegates from the respective integrated cooperative organizations, who shall be members of said cooperatives;
(d) the general assemblies or boards, councils or committees of the central cooperatives, the federations and the League shall be constituted solely by the delegates of the organizations which have been integrated with them provided they maintain their nature as such;
(e) as regarding other aspects, the provisions of the present chapter which refer to the organizational and operational structure of primary cooperatives are applicable to the League, the federations and the central cooperatives, and
(f) the League and the federations shall not refuse the incorporation to their organization any cooperative organization which meets the requirements of law.
History —Sept. 1, 2004, No. 239, § 25.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4539 - Central cooperatives—Purpose

Central cooperatives shall be officially recognized as juridical persons pursuant to the present chapter. They are profit-making entities organized to carry out activities such as the following, at the service of the cooperatives that constitute, the same, their members or the public:
(a) Provide machinery, equipment, tools, supplies, construction material, provisions and other goods necessary or convenient for their use, consumption, production or distribution.
(b) Preferentially market and/or industrialize the products of the integrated organizations.
(c) Carry out import and export operations.
(d) Provide goods or services to be used in common.
(e) Provide advisory services in the specialty areas of the central cooperatives.
(f) Coordinate or unify services common to integrated cooperative organizations.
(g) Carry out any other financial activities allowed by the laws of the Commonwealth of Puerto Rico.
History —Sept. 1, 2004, No. 239, § 26.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4540 - Central cooperatives—Norms

Central cooperatives are governed by the following basic norms:
(1) These may be constituted:
(a) Second grade central cooperatives, composed by primary cooperatives of the same or different types, or by other cooperative organizations, and
(b) central cooperatives of a grade superior to those provided in clause (a) of this subsection, composed by central cooperatives or other cooperative organizations.
(2) The minimum number of cooperatives which constitute a central cooperative shall be that established through regulations according to the nature thereof.
(3) The operating range of a central cooperative shall be determined by its articles of incorporation.
(4) Cooperative organizations may be integrated into one or more central cooperatives.
(5) Central cooperatives composed exclusively by cooperatives of the same type may be integrated into the federation corresponding to the same.
History —Sept. 1, 2004, No. 239, § 26.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4541 - Federations—Purposes

Cooperative federations are associations constituted to carry out the following activities at the service of the cooperative organizations of which they are constituted:
(a) Represent and defend the interests of federated cooperatives and coordinate their activities;
(b) oversee the progress of federated cooperatives,
(c) perform audits through certified public accountants at cooperatives of their type when requested by their Boards of Directors by recommendation of the federate body to the Board of Directors of their affiliates;
(d) intervene as arbitrators in conflicts which arise between cooperatives of their type or between the aforesaid and their members, when the parties so request it;
(e) provide permanent advisory services to those cooperatives of their type which request it, primarily in the cooperative, juridical, administrative, managerial, accounting, financial, economic and educational areas;
(f) promote the constitution of new cooperatives in their field and perform feasibility studies at their request;
(g) promote cooperative education;
(h) promote cooperative integration;
(i) carry out financial operations which are not in conflict with the services or operations of their affiliates as a means for achieving their goals, and
(j) other functions for or on behalf of their affiliates that do not compete against the purposes of the cooperatives.
History —Sept. 1, 2004, No. 239, § 27.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4542 - Federations—Norms

Cooperative federations are governed by the following basic norms:
(a) Only one (1) federation may be constituted for each type of cooperative throughout the Island.
(b) Each federation shall be constituted by not less than twenty percent (20%) of the primary cooperatives of the same type. Not less than fifty percent (50%) shall be required in those cases in which a federation is constituted by less than forty percent (40%).
History —Sept. 1, 2004, No. 239, § 27.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4543 - Federations—Quorum

A federation assembly shall be duly constituted with the representation of not less than twenty-five percent (25%) of the affiliated cooperatives or the delegates. If quorum is not obtained in the first assembly, a second assembly shall be called in which the quorum shall be ten percent (10%) of the affiliated cooperatives or of the delegates. If quorum is not obtained in the second assembly called, quorum shall be constituted by the members present at the third assembly called.
History —Sept. 1, 2004, No. 239, § 27.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4544 - Federations—Member certification

The federation may request a certification of members from the affiliated cooperative or from the Inspector of Cooperatives at the last close of operations of the cooperative.
History —Sept. 1, 2004, No. 239, § 27.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4545 - League of Cooperatives—Definitions

The League of Cooperatives of Puerto Rico is the association of the third grade of the Puerto Rican cooperative movement which groups the cooperatives, federations and central cooperatives organized pursuant to this chapter or any other law passed by the Legislature of Puerto Rico.
History —Sept. 1, 2004, No. 239, § 28.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4546 - League of Cooperatives—Functions

The League of Cooperatives shall carry out the following functions:
(a) Act as representative of the cooperative movement.
(b) Promote, coordinate and defend the general interests of the cooperative movement and the cooperative sector.
(c) Promote a relationship of cultural and commercial exchange between cooperative organizations at the national and international levels.
(d) Coordinate the actions of the cooperative movement in Puerto Rico with the cooperative activities of the public sector.
(e) Coordinate the representation of the movement before the Commonwealth of Puerto Rico in order to set forth those measures which are necessary and convenient for cooperative development and for perfecting cooperative law.
(f) Carry out research and studies regarding problems common to the cooperative movement with the purpose of achieving an integrated plan for its development.
(g) Promote a process for the permanent integration of cooperative organizations at all levels.
(h) Promote intensive and permanent cooperative education at all levels of the cooperative movement in all other sectors.
(i) Promote the unification and strengthening of the cooperative financial system.
(j) Defend the effectiveness of the universal principles of the cooperative movement and of those basic doctrines acknowledged and accepted by the cooperative movement.
(k) Perform feasibility studies and promote the creation of new cooperatives in non-federated sectors.
(l) Perform any other functions delegated by its affiliates, in harmony with its ends and purposes.
History —Sept. 1, 2004, No. 239, § 28.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4547 - League of Cooperatives—Structure

The League of Cooperatives of Puerto Rico is the federated cooperative organization at the highest level of cooperative integration and it shall be exclusively composed, with equal rights and obligations by:
(a) Cooperatives federations.
(b) Central cooperatives.
(c) The Cooperative Bank, insurance cooperatives, and other cooperative institutions which in any case enjoy the juridical nature of central cooperatives but, because of their activities, must comply with certain particular requirements of the Commonwealth.
(d) Basic or first level cooperatives, until the development of a second level structure which ensures due representation of basic cooperatives.
The organizational structure of the League of Cooperatives shall be established in the bylaws adopted by its assembly of delegates, following the same procedure for approval and amendments established in the bylaws of the cooperatives.
History —Sept. 1, 2004, No. 239, § 28.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4548 - League of Cooperatives—Quorum

League assemblies shall be legally constituted when at least twenty percent (20%) of the delegates of the affiliated cooperatives are present. Every cooperative shall have the right to one (1) official delegate and one (1) alternate delegate.
History —Sept. 1, 2004, No. 239, § 28.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XI - Cooperative Integration (§§ 4530 — 4549) › § 4549 - League of Cooperatives—Contribution

All cooperatives, central cooperatives, banks and cooperative federations, as well as any other entity organized or to be organized under any law of the Commonwealth of Puerto Rico, shall be bound to set aside annually not less than one-tenth of one percent (0.1%) of the total volume of its operations to contribute to the support of the League. Said cooperatives shall deposit with the League of Cooperatives of Puerto Rico that sum which is the product of the aforesaid computation up to a maximum of four thousand dollars ($4,000).
Cooperatives, central cooperatives, banks and federations which during their annual operations obtain a net surplus shall contribute an additional amount of five percent (5%) of their annual net surplus up to a maximum of three thousand dollars ($3,000).
During the month following the close of each fiscal year’s operations of the cooperatives, they shall have deposited with the League of Cooperatives the total sums which they were bound to pay for the year thus ending. Deposits shall be made each quarter and each partial payment shall be estimated at one-fourth (¼) of the amount they were bound to pay for the preceding year. The pertinent adjustments shall be made at the close of the year and should there be a payment in excess, it shall be credited to the estimated payment for the following first subsequent quarter.
History —Sept. 1, 2004, No. 239, § 28.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4550 - Causes for syndication

The Cooperative Development Administration may decree that a cooperative be placed under the administration of an administrative receiver at the request of the members, the Board of Directors, the parties or at its own initiative when, after an audit, investigation, assessment or inspection conducted by the Office of the Inspector of Cooperatives, it is found that the cooperative is in one or more of the following situations:
(a) It is being managed or administered in such a manner that the members and creditors are at risk of being defrauded or of suffering severe losses;
(b) it lacks an economic and financial situation which shall prevent it from continuing to do business if immediate action is not taken; it does not have effective internal controls for the administration of its affairs; it does not have adequate reserves or its accounting is not up to date nor reasonably accurate;
(c) there are no corrective or rehabilitation procedures which are less drastic to adequately address the risk of loss for the members and creditors of the cooperative, and
(d) when there are no directing bodies as provided in this chapter.
History —Sept. 1, 2004, No. 239, § 29.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4551 - Procedure for receivership

The Cooperative Development Administration shall hold a hearing prior to issuing an order to place a cooperative under receivership. However, it shall issue a temporary order designating an administrative receiver without the need to hold a hearing when, in its judgment the situation of the cooperative is of such nature that irreparable damage is being caused or may be caused to its own interests, its members or creditors. When the Cooperative Development Administration issues a temporary order and designates an administrative receiver, it shall hold an administrative hearing within ten (10) days following the date of the notification of said hearing, after which it shall decide whether it is made permanent or revoked.
In the case of voluntary receivership requested by the Board of Directors, the Cooperative Development Administration shall call its members to an informative assembly immediately after it appoints an administrative receiver.
History —Sept. 1, 2004, No. 239, § 29.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4552 - Appointment of an administrative receiver

In each case in which the Cooperative Development Administration issues a temporary or permanent order to place a cooperative under receivership, the latter shall operate it him/herself or through an external entity or person, pursuant to the regulations he/she promulgates to attain the rehabilitation of the cooperative.
History —Sept. 1, 2004, No. 239, § 29.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4553 - Returning the cooperative to its members

When the Cooperative Development Administrator deems that the operations of the cooperative have reached the necessary stability, he/she shall return the management or administration of the cooperative to the duly elected and designated officers and employees under those stipulated conditions.
History —Sept. 1, 2004, No. 239, § 29.3.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4554 - Right to a review

The order of the Cooperative Development Administrator’s [sic] to designate an administrative receiver may be reviewed by the court which corresponds to the domicile of the cooperative through a recourse filed within ten (10) days from the date of the notification of the decision to the Board of Directors of the cooperative.
History —Sept. 1, 2004, No. 239, § 29.4.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4555 - Order of dissolution

When the receivership does not achieve the financial recovery of a cooperative within a reasonable term, the Cooperative Development Administrator may order the receiver to proceed with the total dissolution of the cooperative.
History —Sept. 1, 2004, No. 239, § 29.5.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4556 - Voluntary dissolution

Every cooperative organized pursuant to this chapter may be dissolved voluntarily through the vote of two-thirds (2 / 3) of the members present at an assembly called and constituted for that purpose. Said assemblies shall be convoked by mail, at least fifteen (15) days prior to the holding thereof.
The dissolution agreement shall be signed and certified by the Chairperson and the Secretary of the Board of Directors, and notified to the Inspector of Cooperatives and the Cooperative Development Administration.
History —Sept. 1, 2004, No. 239, § 30.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4557 - Involuntary dissolution

The Inspector of Cooperatives of Puerto Rico may decree the dissolution of a cooperative:
(a) When it has been impossible to gather its members or delegates in an assembly for more than two (2) consecutive years;
(b) when a cooperative has been inactive for a period of not less than three (3) years. An inactive cooperative shall be understood to be one that does not perform the activities needed to achieve its ends and purposes;
(c) when a cooperative fails to correct, within a reasonable period of time and according to a work plan for such purpose, violations of the law indicated by the Inspector of Cooperatives, and when said violations represent or may represent irreparable damages for the members of the community, and
(d) when a cooperative has reduced the real value of its shares by more than fifty percent (50%).
History —Sept. 1, 2004, No. 239, § 30.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4558 - Board of receivers—Appointments

After the assembly has approved the agreement of dissolution, it shall appoint [a] board of receivers, which shall consist of not less than three (3) members. Should the assembly fail to elect said receivers, they shall be appointed by the Inspector of Cooperatives.
In those cases in which the Inspector has decreed the dissolution, he/she shall appoint the members of said board. The board of receivers shall be required to obtain a fidelity bond underwritten by an insurance company of Puerto Rico. When it is not possible to appoint three (3) receivers, the Inspector shall appoint a single trustee to carry out the dissolution procedures.
History —Sept. 1, 2004, No. 239, § 31.0.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4559 - Board of receivers—Obligations

The board of receivers shall liquidate the assets of the cooperative, pay its debts and distribute the remainder, if any, pursuant to the provisions stated below. The board of receivers shall notify the fact to all known creditors.
The board of receivers shall complete the dissolution within the term established in its appointment by the assembly or in its designation by the inspector. The term thus established may be extended with the authorization of the Inspector of Cooperatives.
History —Sept. 1, 2004, No. 239, § 31.1.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4560 - Board of receivers—Vacancies

Any vacancy on the board of receivers due to the death, resignation or dismissal of a receiver shall be filled through an appointment made by the remaining members of that board of receivers. Should they not act within twenty (20) days after the vacancy occurred, the inspector shall fill the same.
History —Sept. 1, 2004, No. 239, § 31.2.
2023 Laws of Puerto Rico › TITLE FIVE - Agriculture (§§ 1 — 4706) › Chapter 102 - General Cooperative Associations Act (2004) › Subchapter XII - Receivership or Dissolution of Cooperatives (§§ 4550 — 4569) › § 4561 - Board of receivers—Destitution

When the Inspector of Cooperatives deems that the board of receivers or any of its members are not performing their duties according to the provisions of the law, or are acting against the interests of the cooperative, he/she may dismiss said board or any of its members. Prior to the dismissal or removal, the Inspector shall give notice in writing to the members regarding the charges brought against them and offer them the opportunity to refute said charges at a hearing before him/her.
History —Sept. 1, 2004, No. 239, § 31.3.