P.R. Laws tit. 13, § 10631
(a) General rule. — Any transfer of stock, shares, property or any majority proprietary interest that constitutes a change of control of ownership to another person, and any sale, exchange, gift, or any type of alienation or transfer of title of the housing project or the credit, shall require the prior approval of the Executive Director and the endorsement of the Secretary of the Treasury. If the change of control or transfer of title of the housing project or credit is made without prior approval, the owner shall have to reimburse the credits to the Secretary of the Treasury pursuant to § 10633 of this title. Notwithstanding the above, the Executive Director may retroactively approve any change of control, transfer of title of the housing project, or the credit, made without his/her approval, when, in his/her judgment, the circumstances merit said approval, taking into account the best interests of the Commonwealth of Puerto Rico and the purposes of this chapter. Every duly completed application for a change of control, transfer of title of the housing project, or the credit must be approved or denied within sixty (60) days following its filing. The duly completed application for a change of control, transfer of title of the housing project, or the credit shall be considered automatically approved if the Executive Director does not make any expression on the same within sixty (60) days following its filing. The denial of an application for change of control, transfer of title of the housing project, or the credit shall be done in writing, and shall also itemize the reasons for the denial thereof.
(b) Exceptions. — The following transfers or changes of control shall be valid without needing the prior consent of the Executive Director:
(1) The transfer of the assets of a decedent to his/her estate or the transfer by legacy or inheritance.
(2) The transfer of stock or shares of the owner when said transfer does not directly or indirectly result in a change of control of the owner.
(3) The pledge or mortgage given in the regular course of business with the purpose of providing a guarantee of a bona fide debt. Any transfer of control, title or interest by virtue of said contract shall be subject to the provisions of subsection (a) of this section.
(4) The transfer by legal operation, by an order of the court, or a bankruptcy judge to a receiver. Any subsequent transfer to a third person who is not the same debtor or former bankrupt shall be subject to the provisions of subsection (a) of this section.
(c) Notification. — Every transfer included in the exceptions of subsection (b) of this section, shall be reported by the owner to the Executive Director, with a copy to the Secretary of the Treasury, within thirty (30) days after having been made. Noncompliance of this obligation shall bring about the imposition of a fine by the Executive Director, as provided in § 10634 of this title.
(d) Transfer by financial institutions. — The financial institution that has obtained a credit by foreclosure or other legal proceeding, for having granted or delivered the qualification certificate in security as part of the financing of the housing property of the owner, may assign, sell or transfer said credit to a third party as if it were the owner, as provided in § 10626 of this title. Both the financial institution as its grantor or transferor of credit and the third assignee or third acquirer, shall be subject to and shall comply with the provisions of this chapter as applicable to them.
History —Oct. 4, 2001, No. 140, § 12; Aug. 13, 2008, No. 261, § 9.