P.R. Laws tit. 7, § 252
For the purposes of this subchapter and of the other applicable provisions of this chapter, the following terms shall have the meaning set forth hereinbelow:
(1) Compensation corporation. — Means a corporation registered as a compensation agency under federal securities laws, or a corporation:
(a) In which at least ninety percent (90%) of its capital stock is owned by or on behalf of one or more organizations, none of which, with the exception of a national stock exchange or stock company, own more than twenty percent (20%) of the capital stocks of the corporation, and each one of which:
(i) Is subject to supervision or regulation under the provisions of federal, state or Puerto Rican banking laws or state or Puerto Rico insurance laws;
(ii) is a broker, dealer or investment company registered under the federal securities acts, or
(iii) is a national stock exchange or national stock company registered under the federal securities acts, and
(b) whose capital stock balance is owned by individuals who have acquired such stock on or before the date they took office as officials or directors of said corporation, and who have acquired only that amount of capital stocks that is needed to qualify as directors.
(2) Financial intermediary. — Means a financial institution, a compensation corporation or any other person or persons designated by any one of them, who in the regular course of business holds securities accounts for its clients and acts in such capacity.
(3) Security. — Means securities evidenced by certificates, securities not evidenced by certificates and securities in which the title thereof is kept in electronic systems. If a security is evidenced by certificate, the term “security” and “security evidenced by certificate” may mean the right on said security, the instrument that evidences said security, or both, as the context so requires it.
(4) Security evidenced by certificate. — Means a stock, share or other interest in the property or business of the issuer or an obligation of the issuer, which:
(a) Is represented by an instrument issued to the bearer or registered;
(b) is of a kind commonly used in the stock market or securities exchange or commonly recognized in any area in which it has been issued or used as a means of investment, and
(c) is of a class or series, or divisible by class or series of stocks, shares, interest or obligations, by its terms.
(5) Security not evidenced by certificate. — Means a stock, share or other interest in the property or business of the issuer or an obligation of the issuer, which:
(a) Is not represented by an instrument, and the transfer of the same is registered in the books kept to such effects by or in the name of the issuer;
(b) is of the type commonly used in the stock market or securities exchange, and
(c) is of a class or series, or divisible by class or series of stocks, shares, interest or obligations, by its terms.
(6) A security evidenced by certificate is issued in a “registered manner”, if it specifies the person entitled to the security or to the rights it represents and its transfer can be registered in books kept for such purposes by or in behalf of the issuer, or the security so indicates it.
(7) A security evidenced by certificate is issued “to bearer” if it is transfered to bearer pursuant to its terms and not because of any endorsement.
History —Aug. 14, 1991, No. 69, § 2.1.