P.R. Laws tit. 23, § 6031
(a) When the Commissioner revokes the license of a fund for violations of this chapter or its regulations, or the renewal of a license of a fund that was operating pursuant to this chapter is denied, he/she shall immediately notify the Director, who may create a trust or authorize the creation of another fund which shall receive the assets and money of the former and shall continue the operations thereof.
(b)
(1) The shareholders in a fund that is liquidated or ceases to operate because of the revocation or non-renewal of its license shall receive in exchange of the securities they have in said fund, shares in the trust created by the Tourist Company, or stock or shares in the new fund authorized by the Director pursuant to what is established in subsection (a) of this section.
(2) For purposes of §§ 8006 et seq. of Title 13, the terms “involuntary conversion” and “conversion into similar property” shall include the exchange of an investment in securities of a fund for shares in a trust created by the Tourism Company, or for shares or stock in a new fund authorized by the Director pursuant to what is established in subsection (a) of this section.
(c) For the purposes of §§ 8006 et seq. of Title 13, shareholders shall not acknowledge gains nor losses on an exchange made pursuant to subsection (b) of this section in an investment in securities of a fund for a share in a trust created by the Tourism Company or for shares or stock in a fund authorized by the Director pursuant to that which is established in subsection (a) of this section.
(d) The tax base of the share in the trust created by the Tourism Company or of the shares or stock in the fund authorized by the Director, pursuant to what is established in subsection (a) of this section, shall be equal to the base the participant had in the shares or stock of the fund immediately before the exchange.
(e) The participants in a trust or fund created by the Director pursuant to the provisions of this section, shall enjoy all of the benefits and rights granted by this chapter just as if they continue[d] to be participants of the fund dissolved by the Director.
History —Sept. 10, 1993, No. 78, § 21; Jan. 8, 1994, No. 3, § 8.