P.R. Laws tit. 23, § 485
Pursuant to the public policy of the Commonwealth of Puerto Rico in behalf of the development of the cooperative movement through co-investment, the Government Development Bank is hereby empowered and authorized to invest up to the sum of twenty-five million dollars ($25,000,000), matching the investment made by the cooperative entities to the Fund. It is hereby provided that the Government Development Bank shall make its first investment of five million dollars ($5,000,000) in the Fund, on or before one hundred and twenty (120) days after the incorporation of the fund, without having to wait for the accrual of said sum by the cooperative movement.
Within sixty days after the constitution of the Board of Directors of the Fund, the investment commitment of the Government Development Bank in the Fund shall be set forth in a written co-investment agreement subscribed between said bank and the Fund. Said agreement shall define the terms and conditions under which the investment of the Commonwealth shall be mandatory; the agreement shall have a minimum term of effectiveness of ten (10) years. During the effectiveness of the co-investment agreement, the amounts of the investment commitment of the Government Development Bank, that have not been invested in the Fund, shall be kept segregated and invested pursuant to the investment policy adopted to such purpose by the Board of Directors of the Fund, with the affirmative vote of the government representatives. A reasonable portion of the yield of the funds shall be turned over to the Fund to defray its operating budget, duly approved by the Board of Directors. The unencumbered balance of the yield shall be used to replace the funds available for investment up to the sum of the maximum commitment of twenty-five million dollars ($25,000,000). Any available surplus may be used to capitalize the Fund or for educational donations or contributions for other uses, as authorized at a regular meeting by the majority of the members of the Fund.
Within sixty (60) days after the approval of this act, the Government Development Bank shall advance the sum of five hundred thousand dollars ($500,000) to the Cooperative Development Administration to defray the expenses of the establishment of the Office of the Fund, the organization and initiation of the operations of the fund, including its incorporation procedure, the drafting of the corporate bylaws of the Fund, the drafting of the investment policies of the Fund, the development of eligibility parameters of projects, and the policies and evaluation procedures of the projects. Said advance shall be charged to the first operating budget of the Fund.
History —Aug. 18, 2002, No. 198, § 7.