P.R. Laws tit. 26, § 2817
(1) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact of a reciprocal or Lloyd’s insurer, or syndicate, after it has received a certificate of authority, if an insurer, or it has completed its initial organization and financing if a corporation other than an insurer or a syndicate, shall solicit or receive funds in exchange for any new issue of its securities, other than through a stock dividend, until it has applied to the Commissioner for, and has been granted, a solicitation permit.
(2) The Commissioner shall issue such a permit unless he finds that:
(a) The funds proposed to be secured are excessive in amount for the purpose intended; or
(b) the proposed securities or the manner of their proposed distribution are inequitable; or
(c) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer, corporation, or syndicate.
(3) Any such solicitation permit granted by the Commissioner shall be upon such application, for such duration, and upon such conditions and terms as the Commissioner may reasonably specify or require.
(4) This section shall not apply as to funds borrowed by an insurer or corporation from a bank or other financial institution in regular course of business.
History —Ins. Code § 28.170.