P.R. Laws tit. 7, § 1253
(a) When the Commissioner revokes a fund’s license due to violations of this chapter or its regulations, or when under § 1247 of this title hereof he/she denies the renewal of the license to an investment capital fund that was operating pursuant to this chapter, and, in any of said cases, determines that the total liquidation of the fund is not in the best interests of the investors or other interested parties, he/she shall immediately notify the Bank and it will create a trust, or the Commissioner shall authorize the creation of another fund to receive the assets and moneys of the first, and shall continue operating it. The Commissioner, at his/her discretion, may appoint a trustee to administer or liquidate the fund, in substitution of the above-mentioned procedures.
(b)
(1) The investors in the fund that ceases to operate because its license is not renewed or was revoked, but whose operations shall continue pursuant to subsection (a) of this section, shall receive in exchange of the proprietary interests they have in the fund, shares in the trust created by the Bank or in the new fund authorized by the Commissioner, that are equivalent to their respective shares in the fund that ceased to operate.
(2) For the purposes of §§ 8401 et seq. of Title 13, the terms “involuntary conversion” and “conversion in similar property” include the exchange of an investment in proprietary interests of a fund for shares in a trust created by the Bank, or in a new fund authorized by the Commissioner in accordance with what is established in subsection (a) of this section.
(c) For the purposes of §§ 8401 et seq. of Title 13, the investor in a fund shall not acknowledge a profit or a loss in an exchange carried out pursuant to subsection (b)(1) of this section, of an investment in proprietary interests in a fund for a share in a trust created by the Bank. or in a fund authorized by the Commissioner in accordance with what is established in subsection (a) of this section.
(d) The tax base of the investor’s share in the trust created by the Bank, or in the new fund authorized by the Commissioner pursuant to what is established in subsection (a) of this section. Shall be equal to the base that the investor had in proprietary interests in the original fund immediately before the exchange.
(e) For the purposes of § 1251(d) of this title, the internal base with regard to each proprietary interest in the trust created by the Bank or in the new fund authorized by the Commissioner pursuant to what is established in subsection (a) of this section, shall be equal to the internal base with regard to the equivalent proprietary interest in the original fund immediately before the exchange.
History —Oct. 6, 1987, No. 3, p. 840, § 13, renumbered as § 14 and amended on July 11, 1996, No. 70, § 14.