P.R. Laws tit. 5, § 4550
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.