P.R. Laws tit. 5, § 4381
For the purpose of this chapter, the following terms shall have the following meanings:
(a) Shares. — Shall mean the economic contribution made by each member of a cooperative to the capital or equity of the cooperative enterprise.
(b) Preferred shares. — Shall mean the shares issued by any cooperative in which the amount, term and interest, if any, to be earned is provided. Preferred shares shall be part of the capital of the cooperative and shall never exceed the total amount of issued common shares. The power of a cooperative to issue preferred shares shall be previously agreed upon by the general assembly of members.
(c) General assemblies. — Shall mean the meetings of the cooperative members, or their delegates, who exert the maximum authority of the cooperative.
(d) Sponsor. — Shall mean to support the creation of another cooperative pursuant to the provisions of this chapter.
(e) Cooperative. — For purposes of this chapter, shall mean any institution organized pursuant to the provisions of this chapter, excluding those cooperative institutions organized and regulated by other laws.
(f) Central. — Shall mean an entity with economic purposes, constituted by member cooperatives.
(g) Articles. — Shall mean the main constituting document of the cooperative, which is called the “articles of incorporation”.
(h) Department. — Shall mean a commercial activity organized by the cooperative that is not a part of its main activities and that is established as an additional service to its members.
(i) Inspector. — Shall mean the Office of the Cooperatives Inspector of Puerto Rico.
(j) Board. — Shall mean [the] Board of Directors of a cooperative.
(k) Governing bodies. — Shall mean the Board of Directors, credit committee, supervision committee, education committee, and any committee that performs duties delegated by the Board of Directors and any standing elected body duly instituted by law, regulation or the general rules of the cooperative.
(l) Delinquency. — Shall mean the member’s failure to or delay in complying with the responsibilities of a member.
(m) Officer. — Shall mean a member appointed by the Board to a specific position in said Board.
(n) Operation. — Shall mean the sowing, cultivation, extraction, receipt, storage, production, manufacture, use, purchase, sale, repair, service or any other means of managing items or merchandise.
(o) Sponsorship. — Shall mean that proportion of the total volume of business or services of the cooperative generated, carried out, rendered or received by a member.
(p) Person. — For purposes of this chapter, means: (1) every natural person; (2) every cooperative organized under the laws of Puerto Rico; (3) any non-profit association or juridical person registered under the laws of Puerto Rico.
(q) Bylaws. — Shall mean the internal regulations of a cooperative.
(r) Corporate reserve. — Shall mean the special reserve established by every cooperative for any eventuality or contingency.
(s) Service. — Shall mean any measure of a lawful nature which may be rendered or obtained by a cooperative for itself, its members or other sponsors; it includes the provision of funds, the capacity to receive and make loans, deposits and investments, and to organize activities of an educational and business nature.
(t) Member. — Shall mean any person admitted as a member into a cooperative pursuant to this chapter and the general bylaws of said cooperative; Provided, That for profit juridical persons shall not be accepted as members.
(u) Type. — Shall mean the main activity or purpose of a cooperative.
(v) Chief executive. — Shall mean any natural or juridical person, including the executive chairman, general manager, administrator, administrative agent, auditor or comptroller of a cooperative who holds a position of trust by virtue of trust of an appointment or fixed, indefinite or temporary work contract, and for salary or compensation.
(w) Family unit. — Shall mean the spouse of a member of a directing body or an employee of the cooperative, the relatives up to the second degree of consanguinity or affinity, and the persons who share their legal residence or whose financial affairs are under his/her legal control.
(x) Improper conduct. — Shall mean any conduct that violates the provisions of this chapter, the bylaws of housing cooperatives or the housing contract.
(y) Family structure. — Shall mean the members of the family nucleus of the member that appear in the registry books of the cooperative.
History —Sept. 1, 2004, No. 239, § 1.2.