P.R. Laws tit. 7, § 611j-1
(a) Unsecured claims against the Bank, or the receiver for the Bank under this chapter, that are proven to the satisfaction of the receiver, shall have priority in the following order:
(1) Administrative expenses of the receiver.
(2) Wages, salaries, or commissions, including vacation, severance, and sick leave pay, or other similar employee benefits, earned by an individual prior to the appointment of the receiver in accordance with the Bank’s employment policies or by applicable law.
(3) Contributions owed to employee benefit plans arising from services rendered before the date of appointment of the receiver.
(4) Any unpaid balance of money held by the Bank in its depository accounts for the credit of a depositor and any other general or senior liability of the Bank (which is not a liability described in clause (5)).
(5) Any obligation that is statutorily or contractually subordinated to general unsecured creditors.
(b) This section shall not affect secured claims or security entitlements in respect of assets or property held by the Bank, and all such secured claims or security entitlements shall be paid from the security or from the realized value of the security. To the extent that the security is insufficient to satisfy the claim, then the difference between the claim and the realized value of the security shall be paid in accordance with this section.
(c) Notwithstanding any other provision of this chapter or the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act, a depositor or receiver may offset the amount of its deposit against any outstanding balance of a loan from the Bank as full and final payment up to the amount of the deposit.
(d) The priority for administrative expenses, as that term is used in subsection (a), shall include (1) those obligations incurred by the Bank before the appointment of the receiver relating to goods and services provided to the Bank before such appointment, other than individual claims in excess of a threshold to be determined by the receiver in its reasonable discretion; (2) those obligations incurred by the Bank after the appointment of the receiver relating to goods and services provided to the Bank after such appointment; and (3) any other obligations that the receiver determines are appropriate to facilitate the orderly resolution of the Bank.
(e) The Secretary of the Treasury, after consultation with the receiver and the Governor, shall have the power to waive, reduce, subordinate, or assign any claim of a governmental unit except if such governmental unit is a municipality, provided, however, that any portion of a claim that has been assigned pursuant to this subsection may not be setoff by the assignee as provided for in subsection (c) of this section.
History —July 24, 1985, No. 22, p. 735, added as § 12 on Apr. 6, 2016, No. 21, § 502.