Except for the provisions of § 1362e of this title, five (5) or more natural persons, of legal age and residents of the Commonwealth of Puerto Rico, may act as incorporators of a cooperative organized pursuant to this chapter. The incorporation process shall be carried out through the signing of a document that contains the incorporation clauses and the general regulations, both of which agree with the provisions of this chapter, §§ 1334 et seq. of this title, and the regulations adopted thereby. Prior to the presentation of documents required above, every group that desires to organize as a cooperative shall receive the advice of the Corporation on the applicable financial and regulatory requirements for the establishment of the new entity, and the guiding principles of the cooperative movement. This guidance shall be offered by Cooperative Development Administration or shall be contracted by the Corporation with the Cooperative League.
The philosophic grounds of the cooperative movement and their application through the organization and operation of savings and credit unions, are a most essential part of the requirements prior to the organization of a cooperative. The financial and regulatory requirements arise from a clear understanding that the cooperative movement is a distinct and peculiar economic activity that is based on principles that are unique to this type of organization.
The organization of a new cooperative entity shall require an affirmative determination of the Corporation to the effect that it is necessary and convenient for the population it shall serve, and shall not unduly affect the existing cooperatives, thus contributing to the orderly and adequate development of the cooperative movement in Puerto Rico. The Corporation is hereby empowered to adopt, through regulations, the evidence, documentation and information that shall be required from the proponents, and the criteria that the Corporation shall use to execute the determination required by this section. Except in the case of entities organized or controlled by cooperatives, at the close of the first six months of existence, every cooperative shall have at least thirty-five (35) members who have no direct family ties within the fourth degree of consanguinity, or second of affinity.
With the exception of the second-degree cooperatives whose shareholders, partners and/or depositors are, exclusively, ensured cooperatives, every cooperative organized pursuant to this chapter must subscribe to the insurance offered by the Corporation.
History —Oct. 28, 2002, No. 255, § 3.01.