P.R. Laws tit. 26, § 4203
Every charitable organization that requests a special license pursuant to the provisions of this Code shall file the following documents in the Office of the Commissioner:
(1) Certified copies of the [in]corporation charter, [in]corporat[ion] articles, and regulations. Foreign corporations shall also file a certified copy of their authorization to do business in Puerto Rico.
(2) A copy of the administrative authorization or determination issued by the Department of the Treasury of its designation as a tax-exempt entity.
(3) In the case of a foreign charitable organization that has a charitable annuity program in its state of origin or other state, district, territory, province or country, a certificate of the proper authorities evidencing the authorization of said program, if the issuing of charitable annuities is regulated in said jurisdiction; or a certification of the proper authority of the state or country to the effect that said issue is not regulated in the jurisdiction.
(4) Certified financial statements of the charitable organization for the last year.
(5) Copies of the annuity contract forms with the donors for evaluation by the Commissioner, who shall approve the model subject to the requirements of § 1111 of this title. Provided, That the contract should at least include information on:
(a) The value of the property or thing that is donated, which shall be its market value as of the date of the donation, as determined under Article 3206(c) of the Puerto Rico Internal Revenue Code of 1994;
(b) the amount of the annuity to be paid to the donor or the persons designated by him;
(c) the manner and interval [in] which the payments will be made;
(d) the age of the person to whom the payments will be made, and
(e) the present value of the annuity benefits created on the date that the annuity contract is issued based on the valuation standards established by the Commissioner. Said value shall not be less than 15% of the value of the original donation, but its determination shall also be subject to the requirement of a residual established in subsection (6) of this section.
(6) A table of maximum annuity rates, which shall be based on the annuity standards adopted by the charitable organization to calculate its reserves, so that the residual contemplated to be withheld by the organization shall not be greater than one half of the original donation made by the donor. The rates used to calculate said reserves shall be, as a maximum, lower by one percentile point to the rates applicable to the annuities marketed by the insurers.
(7) A sworn statement [by] each director and official of the Board of Directors, that he/she has not been convicted of a felony or a crime that implies moral turpitude and that he/she has not filed for bankruptcy.
(8) Proof that the charitable organization is a member of the American Council on Gift Annuities, or any entity that is a successor thereof.
(9) Any other information that the Commissioner deems is necessary.
History —Ins. Code, added as § 42.030 on Aug. 12, 1999, No. 230, § 2.