2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 36 - Retail Installment Sales and Finance Companies (§§ 731 — 793) › Subchapter I - Definitions (§ 731) › § 731 - Definitions

Unless otherwise clearly indicated in the context, when used in this chapter:
(1) Goods. — Means all movable property, except those sold for purpose of resale. The term includes goods which at the time of the sale or subsequent thereto are to be affixed to realty so as to become a part thereof, whether or not severable therefrom.
(2) Services. — Means work, labor and services furnished, rendered or promised in the delivery, installation, servicing, repair or improvement of goods, or repair, alteration or improvement of realty, or relating to movable goods or services of all kinds, supplied or rendered or promised.
(3) Retail seller or seller. — Means any person who sells goods or provides or renders or promises to provide or render services to a retail buyer under a retail installment sales contract. The term includes the lessor under a leasehold of a department in a shop, store, bazaar or other establishment, if the lessor is liable to the customers regarding the goods sold or the services rendered or provided at the leased department and the other operations thereof.
(4) Retail buyer or buyer. — Means a person who buys goods or obtains services from a retail seller under a retail sales installment contract. The term includes a debtor under an insurance policy premium financing contract and the insured under said policy.
(5) Retail installment sale or sale. — Means a sale of goods, or the furnishing or rendering of services, or an agreement to furnish or render services, by a retail seller to a retail buyer for a time sale price payable in installments under a retail installment contract.
(6) Retail sales installment contract or contract. — Means any agreement entered into in Puerto Rico to pay the retail sales price of goods or services during the course of a fixed period of time. It also includes certificates of goods and credit certificates, as well as any agreement entered into in Puerto Rico, by virtue of which the buyer promises to pay in installments the deferred price of goods or services, or any part thereof, or any other contract entered into in Puerto Rico by virtue of which the buyer promises to pay the outstanding balance of his/her debt with a retail seller in installments, whereby the installment charges are debited to the outstanding balance of the debt. The term exclusively includes agreements entered into to pay the retail sales price in installments of the goods or services whereby the buyer is an individual and finance charges are involved.
(7) Cash sale price. — Means the price in cash for which the seller would sell or furnish goods or services to the buyer. It may include any excise taxes, licenses, improvements, and the cash sale price for accessories or services, and for the installation of such accessories to the goods being sold.
(8) Installment sale price. — Means the total sale price of the goods or services and the amounts, if any, included for insurance, fees and [finance] charge.
(9) Initial balance. — Means the sale price of the goods or services subject to a retail installment sale, plus the amounts, if any, included in said sale for insurance and fees, minus the total of the down payment in cash or merchandise.
(10) [Finance] charge. — Means the total of all the charges that the purchaser shall pay in order to obtain the credit.
(11) Time balance. — Means the total of the principal balance and the amount of the [finance] charge, if any.
(12) Holder. — Means the retail seller who acquires a retail installment contract or obligation executed or entered into by a retail buyer. If the contract is purchased or otherwise acquired by a financing agency or other assignee, the term shall include such agency or assignee.
(13) Fees. — Means the fees prescribed by law to be paid to the pertinent public official for the perfecting of any lien or other security on goods, retained or taken by a seller under a retail installment contract.
(14) Person. — Means individual, partnership, corporation, association, or any other group of persons, however organized.
(15) Financing company. — Means a person who is engaged, wholly or partially, directly or indirectly, in the business of purchasing or otherwise acquiring retail installment sale contracts or interest thereon, executed by other persons. This term includes persons engaged in the business of financing insurance policy premiums. It also includes persons who engage in self-financing with a retail installment installment sale contract portfolio of not less than one million dollars ($1,000,000) and credit card issuers who are not covered under any special law that authorizes them to do such business.
(16) Commissioner. — Means the Financial Institutions Commissioner.
(17) Board. — Means the Financial Board created by virtue of §§ 2001 et seq. of Title 7, known as “Financial Institutions Commissioner’s Office Act”.
(18) Proceeds. — Means the earning derived by a financing agency from the purchase of a retail installment contract from a seller.
(19) Revolving account plan. — Means an agreement for the use of a credit card through which the terms of the transactions are established to be made periodically in harmony with said agreement whereby the bearer obtains unencumbered title on what has been acquired. The unpaid balance is payable in installments in a certain period of time and under the terms of the agreement. The finance charge shall be computed monthly in relation to the unpaid balance.
(20) Annual per centum rate. — Means the annual actual cost for the [obtaining] of credit with regard to the unpaid balance of the cost of the goods or of the services obtained, in percentage terms.
(21) Credit card. — Means any instrument or object known as credit card, chit, book of coupons or by any other name, issued with or without the payment of a fee by the recipient thereof, to be used by its holder to obtain or acquire on credit money, goods, services or any other thing of value in any establishment.
(22) Accepted credit card. — Means any credit card issued at the request of the bearer or used or duly signed by the latter personally, or whose use by another person has been authorized by said bearer with the purpose of obtaining money, property or services on credit.
(23) Bearer. — Means the debtor under a revolving account plan or the person authorized by the debtor to conduct transactions under said plan.
(24) Unauthorized use. — Means any use given to an “accepted credit card” by a person other than the bearer.
History —June 19, 1964, No. 68, p. 192, § 101; May 14, 1968, No. 43, p. 66, § 1; May 31, 1972, No. 78, p. 171, § 1; May 31, 1973, No. 69, p. 310, § 1; Mar. 4, 1976, No. 9, p. 20, § 1; Aug. 17, 1989, No. 69, p. 301, § 1; Aug. 11, 1994, No. 60, § 1; Dec. 23, 1998, No. 310, § 1; Aug. 15, 1999, No. 258, § 1, eff. 60 days after Aug. 15, 1999.