P.R. Laws tit. 7, § 569
(a) As of the effective date of this act, except as provided in subsections (c) and (d) of this Section, the Government Development Bank for Puerto Rico may require any agency, department, public corporation, instrumentality, board, commission, authority, and political subdivision of the Commonwealth of Puerto Rico (hereinafter denominated as “government entities’) to deposit and maintain the total or a portion of their funds in deposit accounts, certificates or other instruments issued by the Government Development Bank for Puerto Rico. Provided, That this section shall apply to government entities with a license in effect issued by the Office of the Commissioner of Financial Institutions to the extent the implementation thereof does not adversely affects their operating income or their capacity to generate the funds needed by said government entities to carry out their financing activities, as empowered by their respective Organic Acts.
(b) If the Government Development Bank for Puerto Rico requires any government entity to deposit such funds, the government entity shall immediately initiate such processes and take such actions required pursuant to the regulations, organic acts, and other laws applicable thereto in order to comply with the provisions of this section; Provided, That in the event of conflict between the provisions of this section and those of any other law applicable to such government entity, the provisions of this section shall prevail.
(c) At the request of any government entity that is required by the Government Development Bank for Puerto Rico to transfer funds under this section, the Government Development Bank for Puerto Rico may grant a government entity a total or partial dispensation to meet the requirements of this section in the following cases: (1) the government entity would be subject to burdensome penalties if it transfers all or part of its funds to the Government Development Bank for Puerto Rico; (2) accounts that require specialized or complex services that the Government Development Bank for Puerto Rico may or shall not provide; (3) a previously entered into contractual obligation limits the capacity of the government entity to meet the requirements of this section; or (4) it is impractical to transfer or maintain such funds in the Government Development Bank.
(d) Notwithstanding the provisions of this section, no government entity shall transfer funds to the Government Development Bank for Puerto Rico if such transfer is inconsistent with the contractual limitations with respect to the bondholders of said government entity.
(e) All accounts transferred under this section to the accounting system of the Department of the Treasury, the Puerto Rico Integrated Financial Administration System (PRIFAS), shall be accounted for. The balance of government entities whose operating expenses are defrayed in whole or in part from the General Fund shall be transferred to the account of the Secretary of the Treasury in the Government Development Bank. The balance of other entities may remain, with the authorization of the Department of the Treasury and the Office of Management and Budget, in separate accounts under the custody of the government entity, but accounted for in the central accounting system of the Department of the Treasury. The Department of the Treasury may create accounts and funds; and adopt regulations as are necessary to enforce the provisions of this subsection. A government entity may be exempted from meeting any of the requirements of this subsection, for one or more particular accounts, by means of a dispensation approved by the Government Development Bank, the Department of the Treasury, and the Office of Management and Budget.
(f) The Judicial Branch, the University of Puerto Rico, the Legislative Assembly and its dependent units, the Office of the Comptroller, the Office of the Election Comptroller, the State Election Commission, the Office of Government Ethics, the Special Independent Prosecutor’s Panel, the municipalities, and all Public Service Retirement Systems are hereby excluded from the provisions of this section.
(g) The Government Development Bank for Puerto Rico shall take any necessary administrative actions to offer competitive interest rates for its deposit accounts and other instruments, taking into account the interest rates prevailing in the market. The Bank shall take all those actions it may reasonably take to attempt minimizing the costs of any penalty that may be imposed on any government entity resulting from its compliance with the provisions of this section.
(h) All banks and other financial institutions operating in Puerto Rico that hold the accounts of any government entity are hereby authorized to furnish to the Government Development Bank for Puerto Rico, the Office of Management and Budget, and the Department of the Treasury, upon request, any required information about said accounts. If, by virtue of any law or regulations, it is necessary to obtain the consent of the government entity to furnish the requested information, the Government Development Bank for Puerto Rico, the Department of the Treasury, and the Office of Management and Budget are hereby appointed as authorized representatives of every government entity of Puerto Rico, for purposes of requesting such information.
(i) The Government Development Bank for Puerto Rico is hereby authorized to provide the Department of the Treasury and the Office of Management and Budget with any information required by them in connection with the transfer of accounts, funds, or balances of government entities.
(j) The Government Development Bank for Puerto Rico is hereby authorized to adopt regulations as are appropriate and necessary to implement the provisions of this section.
History —May 24, 1960, No. 6, p. 15, § 1; Feb. 13, 2014, No. 24, § 9.