P.R. Laws tit. 26, § 4037
Whenever a creditor whose claim is secured, in whole or in part, by the undertaking of another person, fails to prove and file the claim, the other person may do so in the creditor’s name and shall be subrogated to the rights of the creditor, when the claim has been filed by the creditor or by the other party in the creditor’s name, to the extent that he/she has discharged his/her undertaking. In the absence of an agreement to the contrary with the creditor, the other person shall not be entitled to any distribution whatsoever until the amount paid to the creditor, in the undertaking plus the distributions paid on the claim to the creditor from the insurer’s estate, equal the amount of the creditor’s total claim. Any amount received in excess by the creditor shall be held by him/her in trust for such other person. It shall not be understood that the term “other person” as used in this section applies to a guaranty association or a foreign guaranty association.
History —Ins. Code, added as § 40.370 on Aug. 17, 1991, No. 72, § 1.