P.R. Laws tit. 7, § 1334i
(a) Duties and obligations of every cooperative. —
(1) Respect of the cooperative principles.
(2) Compliance with the provisions of the General Cooperative Associations Act.
(3) Compliance with local and federal regulations applicable to their businesses, services and operations.
(4) Prevent fraudulent or deceitful practices in their operations and in the offer, underwriting, issuing and sale of shares. The Corporation shall define, through regulations, those specific practices that are fraudulent or deceitful, for which, the Corporation shall take into consideration, among others, the provisions of §§ 851 et seq. of Title 10, also known as the “Uniform Securities Act”. Regarding said norms, every cooperative shall be deemed as an insured cooperative subject to primary jurisdiction and authority of the Corporation.
(b) Duties and obligations of insured cooperatives. — The cooperatives insured by the Corporation shall comply with the following duties and obligations, in addition to any others imposed by this chapter:
(1) Provide protection and acquire insurance against all types of insurable losses for the maximum limits that the specific circumstances of each cooperative require and as provided by the Corporation. Said insurances shall include among others, property insurance, legal liability, fidelity bonds, legal liability insurances for the members of the Board and any other type of coverage established by the Corporation through regulations. These insurance coverages shall be underwritten using the types of policies and the limits determined by the Corporation.
(2) Maintain the regular and special reserves required by the Cooperative [Savings and Credit] Unions Associations Act.
(3) Maintain the special reserves that the Corporation selects by regulations or specific orders, when it is thus justified to protect the interests of the members of the insured cooperatives, and to reduce the potential losses of the Corporation to the lowest possible minimum.
(4) Pay and maintain the capital, regular premiums and special insurance premiums provided in this chapter.
(5) Strictly comply with the requirements, obligations and provisions of this chapter and its regulations with the laws and regulations applicable to the organization and operation of cooperatives in Puerto Rico, including the rules of the Corporation related to their function of monitoring the solvency of insured cooperatives.
(6) Notice of guarantees and announcements to the public. — Every insured cooperative shall maintain in a visible place in each of its business establishments a clearly legible sign notifying the public that the accounts of their members and depositaries are insured by the Corporation. Every promotional or publicity notice shall bear the logo of the insured cooperative and include information to the effects that the accounts of the members and depositors are insured by the Corporation. Unless the Corporation expressly requires it, an insured cooperative may ignore this last requirement in the case of promotional or publicity announcements that are not related to the accounts of the members and depositaries, or when it is not practical to include said information. The Corporation shall adopt guidelines to inform the insured cooperatives on the way to display said signs, the contents thereof and the most adequate and convenient way of using them.
(7) Security system. — Every insured cooperative shall establish and maintain an adequate security system for the protection of its property and its interests. The Corporation shall promulgate rules to establish the minimum security standards that the insured cooperatives must meet with regard to the installation, maintenance and operation of security mechanisms and controls. Said regulations shall provide the term for the insured cooperatives to comply with the security norms adopted by the Corporation, as well as the term for them to render periodic reports with regard to the installation, maintenance and operation of said security mechanisms and systems.
(8) Financial risk management system. — Every insured cooperative shall adopt and maintain a financial risk assessing and management system, according to the parameters defined by the Corporation through regulations.
(9) Training. — Every insured cooperative shall adopt continuing education and training programs according to the parameters defined by the Corporation through regulations. Said regulations and educational programs adopted by the cooperatives thereunder shall ensure and verify that members of the directing bodies, committees and management of the insured cooperative have the technical, financial and managerial knowledge consistent with the office they hold.
History —Aug. 17, 2001, No. 114, § 11.