P.R. Laws tit. 7, § 401
(a) To determine the amount of gross earnings of a trust company for a dividend period the following items may be included:
(1) All earnings actually received during such period, less interest accrued and unpaid included in the last previous calculation of earnings.
(2) Interest accrued and unpaid upon debts owing to it secured by collateral as authorized by this section upon which no default of more than one (1) year exists and upon corporate stocks, bonds, or other interest-bearing obligations owned by it upon which no default exists.
(3) The sums added to the cost of securities purchased for less than par as a result of amortization, provided the market value of such securities is at least equal to their present cost as determined by amortization.
(4) Any profits actually received during such period from the sale of securities, real estate or other property owned by it.
(5) Sums recovered on items previously charged off, and any amount allowed by the Secretary of the Treasury of Puerto Rico on account of assets previously disallowed and charged off.
(6) Provided the Secretary of the Treasury of Puerto Rico shall have approved, and only to the extent of such approval, any increase in the book value of an office building owned by it, which building or a portion thereof is used by it as a place of business.
(b) To determine the amount of net earnings for such dividend period the following items shall be deducted from gross earnings:
(1) All expenses paid or incurred, both ordinary and extraordinary, in the transaction of its business, the collection of its debts, and the management of its affairs, less expenses incurred and interest accrued upon its debts deducted as the last previous calculation of net earnings for dividend purposes.
(2) Interest paid, or accrued and unpaid, upon debts owing by it.
(3) The amount deducted through amortization from the cost of corporate stocks, bonds or other interest-bearing obligations purchased above par in order to bring them to par at maturity.
(4) All losses sustained by it. In the computation of such losses all debts owing to it shall be included upon which no interest shall have been paid for more than two (2) years or on which a judgment has been recovered which shall have remained unsatisfied for two years; and such other assets as shall have been disallowed by the Secretary of the Treasury of Puerto Rico.
The balance thus obtained shall constitute the net earnings of such trust company for such period.
History —Apr. 23, 1928, No. 40, p. 234, § 23, eff. 90 days after Apr. 23, 1928.