P.R. Laws tit. 7, § 261
In order to guarantee sufficient safe and hygienic dwellings in Puerto Rico, to develop the construction and housing industries and the resulting additional employment opportunities for the citizens of the Commonwealth of Puerto Rico, and to facilitate housing programs financed or sponsored by the Puerto Rico Housing Bank and Financing Agency, and any other agency, public corporation, municipality or instrumentality of the Commonwealth of Puerto Rico, the Puerto Rico Housing Bank and Financing Agency, henceforth denominated as the “Agency”, is hereby authorized to insure by itself or jointly with others, and reinsure the payments of any mortgage loan or interim financing granted with the purpose of constructing, rehabilitating, acquiring, leasing or refinancing housing under the terms and conditions determined by the Agency. In the case of permanent financing, the mortgage insurance may be applied to any loan in the portfolio of the Agency or the Office for the Liquidation of the Accounts of the Housing and Urban Renewal Corporation.
For the purpose of meeting the obligations assumed by the Agency in the insurance of mortgages as provided by this chapter, the Agency shall create an Insured Mortgage Reserve Fund, which shall be used to pay for all commitments incurred on account of insurance, operating expenses, and any other expenses incidental to mortgage insurance, as provided for under the Mortgage Security Insurance Regulation, to be established subsequently in this chapter. Such Fund shall be nourished by the following revenue sources:
(1) Premiums charged on account of mortgage insurance;
(2) fees for the [issuance] or extension of insurability pledges;
(3) interest earned by the Insured Mortgage Reserve Fund itself;
(4) funds appropriated by the Agency in order to maintain the Insured Mortgage Reserve Fund at the level required under the Mortgage Security Insurance Regulation to ensure its solvency;
(5) the remaining proceeds of the sale of properties acquired by the Agency through the foreclosure of mortgages insured by the Agency;
(6) legislative appropriations from the General Fund of the Treasury of Puerto Rico or from any other source approved by the Legislature;
(7) appropriations from the Puerto Rico Economic Stimulus Fund, or
(8) any other fee established by the Authority for these purposes.
History —June 25, 1965, No. 87, p. 216, § 1; July 23, 1974, No. 215, Part 2, p. 123, § 1; Aug. 9, 1991, No. 57; Mar. 9, 2009, No. 9, § 16.