P.R. Laws tit. 10, § 998m
For the purposes of §§ 998 l —998q of this title, the following shall be the definitions given to the terms set forth hereinafter:
(a) Financing charges. — Is any charge levied other than discounts, for the sale of a credit in a secondary market, attorney’s fees and incidental expenses, such as title search, title insurance, appraisal, credit reporting, and others, excluding interest accrued by the credit.
(b) Prime rate. — Is the short-term rate of interest charged by the principal banks of New York City to their best commercial or industrial clients. If the prime rate were not uniform for all the principal banks, the average rate charged by the following banks: The Chase Manhattan Bank, the Chemical Bank, Citibank, the Manufacturers Hanover Trust, and the Morgan Guaranty Trust Company shall be considered as the prime rate.
(c) Personal loans. — Are loans made to individuals for personal or family purposes.
(d) Annual rate of interest computed on the add-on credit amount for the full term thereof. — For the purpose of determining this rate, the amount of interest for the entire credit payment period shall be added onto the principal amount of the credit, and divided among the number of installments to be paid, to obtain the monthly payment to be made by the debtor. In order to determine what part of each monthly payment corresponds to interest, a chart shall be prepared using the method known as the addition of digits. The difference between the monthly payment and the interest thus determined shall be applied to the principal of the loan.
(e) Conventional loans. — Are those mortgage loans for constructing or acquiring housing, or its refinancing, which are not insured by the Federal Housing Administration or the Veterans Administration.
(f) Credit. — Are loans or any other form of debt through which short- or long-term monetary resources may be obtained for future repayment.
(g) Federal Home Loan Mortgage Corporation (FHLMC). — Is the quasi-government agency or corporation specialized in the acquisition of conventional mortgage loans.
History —June 14, 1980, No. 3, p. 871, § 2, eff. 10 days after June 14, 1980.