P.R. Laws tit. 7, § 252b
A financial institution designated as depositary of public funds shall have constituted an effective and valid pledge against third parties in favor of the Secretary, on any collateral that secures public funds, when it has complied with the provisions of §§ 5001 and 5002 of Title 31 and this section.
For these purposes, a pledge in favor of the Secretary has been constituted:
(1) When the Secretary or a financial institution designated by him as custodian of collateral of public funds, acquires possession of a security evidenced by certificate, or
(2) when the pledge in favor of the Secretary on a security evidenced by certificate is entered in the registry where ownership of said securities is recorded in favor of the financial institution that constitutes the pledge, or
(3) when a financial intermediary other than a compensation corporation, sends confirmation to the Secretary of the constitution of the pledge in his favor, and identifies by journal entry or in any other manner, that there have been pledged in favor of the Secretary:
(a) A specific security evidenced by a certificate in possession of a financial intermediary, or
(b) a number of securities that constitute or are a part of a fungible group of securities evidenced by certificates in possession of a financial intermediary, or of securities not evidenced by certificates registered in the name of a financial intermediary, or
(c) a number of securities that constitute or are a part of a fungible group of securities that appear as credited in the account of a financial intermediary or in the books of another financial intermediary, or
(4) when a compensation corporation makes the proper entries in its books in favor of the Secretary, by decreasing the account of the pledging debtor and increasing the account of the pledging creditor by the total amount of the pledged security or the number of pledged stocks or obligations, provided said security appears in the books of the compensation corporation in the name of the pledging debtor, is under the control of the compensation corporation and is registered in the name of a compensation corporation, a custodian bank or a person designated by any of them. For the purposes of this provision, the term “custodian bank” means a bank or trust company that acts as a custodian of securities for a compensation corporation, that are regulated, supervised and examined by the government of the Commonwealth of Puerto Rico or the government of the United States of America, or the government of any of its states.
If the security pledged in favor of the Secretary is part of a fungible group of securities that meet the characteristics described in clauses (b) and (c) of subsection (3) this section, it shall be understood that the Secretary is a pledging creditor of the proportional interest that said security has in said expendable group.
History —Aug. 14, 1991, No. 69, § 2.3.