P.R. Laws tit. 6, § 72
Such lines of credit shall be used for the payment of administrative and operating expenses with a maximum interest of one percent (1%) of the prime rate. Provided, That in cases where the special circumstances, needs, and interests involved so require, the Economic Development Bank for Puerto Rico may exempt the participating entity from the payment of interests. The regulations required by this Section shall provide the applicable standards and requirements to grant such exemption.
The lines of credit shall be secured by Commonwealth or federal donation or appropriation granted to the non-profit organization for its operation and with any other available collateral that, in the judgment of the Economic Development Bank, reasonably secure their risk.
Depending on the merits of each particular case, the Economic Development Bank shall, in its discretion, establish the term for repayment of a line of credit granted under this chapter, as well as the time it shall take the pertinent government agencies to allocate and deliver any Commonwealth or Federal donations or appropriations under their control which have been granted to the non-profit organization in question.
Any agencies of the Government of Puerto Rico and its instrumentalities, subdivisions, municipalities, and/or public corporations with control or custody of Commonwealth or federal donations or appropriations approved for a non-profit entity to which a line of credit has been granted under the Program are hereby directed to disburse directly to the Economic Development Bank, after the appropriate assignment of accounts receivable by the corresponding non-profit organization, such donations or appropriations on account of payment for rendered services from any amounts due, provided that the assignment does not exceed eighty percent (80%) of the approved gift or appropriation. Interest accrued on such line of credit shall constitute an obligation of the contracting entity or organization. Participation in this Program is voluntary, and it seeks to offer non-profit organizations an alternative to address their financial needs without affecting the services they render.
History —June 5, 2011, No. 83, § 3, eff. July 1, 2011.