P.R. Laws tit. 7, § 1334e
The Board shall have the following authorities and powers, in addition to any others established in this chapter:
(a)
(1) Approve the rules and regulations for the implementation of this chapter to govern the affairs of the Corporation. These rules and regulations shall be approved by the vote of two thirds (2 / 3) out of the total number of members of the Board at a special meeting of the Board convened especially for its consideration. The regulations of the Corporation, except for the bylaws of the Board, shall be adopted pursuant to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico”. Provided, That all rules, regulations, circular letters, and normative letters, as well as the construction thereof, as promulgated or issued under this chapter shall be consistent with the public policy set forth and formulated by the Governing Board of the Puerto Rico Cooperative Development Commission.
(2) Prior to the approval of the regulations set forth in this chapter or in any other laws under the administration and jurisdiction of the Board of Directors of the Corporation, other than those for the internal operation of the Corporation, the Executive President shall submit them before the Commissioner of Financial Institutions and the Financing Board, for their comments and recommendations, within a term of thirty (30) days.
(3) The rules duly adopted by the Corporation pursuant to this chapter or to any other laws under its administration and jurisdiction, other than those on the internal operations of the Corporation, shall not be less restrictive nor provide less protection to the consumers and users of services and financial products, than the rules adopted under these same laws as applied by the Commissioner of Financial Institutions.
(4) With the exception of the adoption of rules under the present chapter, under Act No. 6 of January 15, 1990, known as the “Cooperative Credit and Savings Union Associations Act of Puerto Rico”, and under §§ 4001 et seq. of Title 5, known as the “General Cooperative Associations Act”, the Corporation shall abstain for a transitional period of two (2) years counting from the approval of the present act, from adopting new rules under those other laws identified in subsection (c)(1) of § 1334b of this title. During this transitional period, the Corporation shall apply and implement with regard to cooperatives, their affiliates and businesses and operations, the norms and regulations adopted by the Commissioner of Financial Institutions, exactly as they apply to the other participants of the financial market.
(5) Among the matters that should be adopted through regulations pursuant to this subsection, the following are included:
(A) Establishing the financial analysis system of the Corporation which shall use, among other things, statistical or financial indicators that will alert the Corporation of problems that could result in the insolvency of the cooperatives.
(B) Establish the requirements of the risk management and proper financial administration policies of the insured cooperatives.
(C) Fix the rating standards, fees and special and regular premiums to be paid by cooperatives that avail themselves of shares and deposits isurance, as well as the mechanisms for the computation, imposition and payment thereof by the insured cooperatives.
(D) Establish the corresponding parameters and mechanisms for the progressive corrective action plans to be required of insured cooperatives that show deficiencies or risks of loss.
(E) Establish the regulation and supervision mechanisms to watch over and protect the rights and prerogatives of the members of every cooperative, including the protection of their financial interests, their right to be properly informed, and preventing against deceitful and fraudulent practices in the offer, sale, purchase and every other transaction on or regarding the stock of cooperatives.
(F) Establish the corresponding self-regulatory parameters and mechanisms for the directing processes of the cooperatives whose affairs do not present or imply risks regarding the economic, financial, juridical or moral integrity of said institutions or of their members.
(G) To establish the dates on which and the frequency with which financial statements are to be submitted, as well as the forms to be used, the persons under the obligation to certify the same, the information that shall be enclosed or attached, and any other data or information as convenient to accomplish the purposes of this chapter. Provided, That any oversight function discharged by the Corporation with respect to cooperatives other than cooperative savings and credit unions shall be carried out observing the difference in the scope and bounds of oversight for non-financial cooperative entities.
(b) Establish the investment policy of the Corporation pursuant to the provisions and limitations established in this chapter.
(c) Perform actuarial studies and investigations and compile data and statistics germane to the insurance it offers.
(d) Evaluate and take the corresponding action at the end of every fiscal year regarding the annual report of the Corporation.
(e) Adopt the preventive or remedial measures needed to reduce the potential of loss of the insured cooperatives and minimize the losses of the Corporation, including the granting of financial aid in cash or through exchange of financial obligations. When the exchange of obligations is used, those issued by the Corporation shall be considered as capital for the insured cooperative and interest shall be paid over the same, as agreed on by the parties.
(f) Ensure that the Corporation effectively complies with its duty to watch over the financial solvency of the cooperatives.
(g) Request the intervention, advice or opinion of the Secretary of Justice when deemed necessary.
History —Aug. 17, 2001, No. 114, § 7; Aug. 10, 2008, No. 247, § 21, eff. Feb. 1, 2009.