2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART II - Trust Companies (§§ 301 — 503) › Chapter 31 - General Provisions and Definitions (§§ 301 — 305) › § 305 - Powers denied companies other than trust companies; exceptions

No corporation other than a trust company organized under the laws of Puerto Rico shall have or exercise in Puerto Rico the power to receive deposits of money, securities or other personal property from any person or corporation in trust, or have or exercise in Puerto Rico any of the powers specified in subsections (1), (4), (5), (6), (7), (8) and (9) of § 363 of this title, nor have or maintain an office in Puerto Rico for the transaction of, or transact, directly or indirectly, any such or similar business, except that a federal reserve bank may exercise the powers conferred by subsection (1) of such section if authorized so to do by the laws of the United States, and any domestic corporation legally exercising any of the powers conferred by such subdivision at the time this act takes effect may continue to exercise such powers, and a trust company incorporated in another territory or state of the United States may be appointed and may accept appointment and may act as executor of, or trustee under, the last will and testament of any deceased person provided trust companies of Puerto Rico are permitted to act as such executor or trustee in the territory or state where such foreign corporation has its domicile, and such corporation shall have executed and filed in the Department of State of Puerto Rico a written instrument appointing the Secretary of State in his name of office, its true and lawful attorney upon whom all process may be served in any action or proceedings against such executor or trustee, affecting or relating to the estate represented or held by such executor or trustee or the acts or defaults of such corporation in reference to such estate, with the same effect as if it existed in Puerto Rico and had been lawfully served with process therein, and shall also have filed in the Department of State of Puerto Rico a copy of its charter certified by its secretary under its corporate seal, together with the post-office address of its principal office.
No foreign corporation, having authority to act as executor or trustee, or otherwise, under the last will and testament of any deceased person, shall establish or maintain directly or indirectly any branch office or agency in Puerto Rico or shall in any way solicit directly or indirectly any business as executor or trustee therein. If any such foreign corporation violates this provision, such foreign corporation shall not thereafter be appointed or act as executor or trustee in Puerto Rico. The validity of any mortgage heretofore given by a foreign corporation to a trust company doing business within the foreign domicile of the mortgagor to secure the payment of an issue of bonds shall not be affected by any of the provisions of this section and such mortgage shall be enforcible in accordance with the laws of Puerto Rico against any property covered thereby within Puerto Rico.
History —Apr. 23, 1928, No. 40, p. 234, § 5, eff. 90 days after Apr. 23, 1928.