P.R. Laws tit. 7, § 36a
A bank may issue capital liabilities with the approval of the Commissioner. Said capital liabilities shall be subordinated by law to the liabilities with depositors and other creditors of the issuer bank and shall not be issued for an expiration period of less than five (5) years. The Commissioner may suspend the payment of principal or interest, of both, of the capital liabilities when they come due or before they come due, when said payment reduces the amount of capital in stock or reserve fund, or otherwise causes the bank to fail to comply with any applicable statutory or regulatory capital requirement, or when in his/her judgment, said payment could affect the financial solvency of the bank or put the interests of the depositors and the general public at risk. Capital obligations shall be deemed as part of the capital for the purposes of §§ 35 and 36 of this title: but they shall be itemized and designated separately in all general balance sheets and shall not be subject to the payment of taxes. No bank shall acquire its own capital obligations as an investment of its trust funds or for its investment portfolio.
History —May 12, 1933, No. 55, p. 322, added as § 9(a) on Aug. 28, 1997, No. 108, § 10.