P.R. Laws tit. 26, § 2814
(1) Upon issuance of the solicitation permit and licensing of one or more sales representatives to solicit thereunder, the directors and officers of a stock corporation may open its books for registration of subscriptions to its capital and commence solicitations therefor.
(2) All subscriptions shall be payable and shall be paid only in lawful money. No subscription not accompanied by cash amounting to at least ten percent (10%) of the total amount of the subscription shall be accepted.
(3) The subscription contract shall specify the allocation of funds payable thereon as between capital, contributed surplus, and expenses of promotion and organization. Such specification may be expressed in percentages, or in sums of money, as applicable to each unit of stock subscribed.
(4) Shares of stock of a proposed new insurer shall not be sold on original subscription at a premium in excess of one hundred percent (100%) of the par value of such shares.
(5) Stock subscription contracts shall provide that no certificate for shares subscribed and paid for thereunder shall be issued until after the corporation has qualified for and has secured a certificate of authority as an insurer from the Commissioner, if to be an insurer, or has completed its organization and proposed financing if it is to be another corporation.
(6) A stock subscription contract may provide for cancellation thereof and forfeiture of funds paid in thereon, if installment payments provided therein to be made by the subscriber remain in default after notice in writing thereof to the subscriber and expiration of a reasonable specified period thereafter.
(7) Syndicate subscriptions shall contain such additional reasonable terms and conditions as may be approved by the Commissioner.
History —Ins. Code § 28.140.