P.R. Laws tit. 7, § 1366f
(a) Provision for possible losses in loans. — Every cooperative shall establish a provision for possible loan losses, chargeable to operating income, using a formula based on the real loan loss experience as fixed by the Corporation through regulations.
(b) Minimum liquidity requirement. — Every cooperative shall always maintain a required minimum amount of liquid assets, that shall be computed in proportion to the composition and maturity of its deposits and certificates. The Corporation shall adopt regulations to determine the percent required and the base for the computation thereof, which shall not be less than fifteen percent (15%) of the sum total of the obligations in deposits and certificates, as these appear on the last day of the month. This minimum liquidity requirement does not imply an additional reserve against the economies of the cooperative.
(c) Contingency reserves. — The Corporation may require any cooperative to establish and maintain a contingency reserve, chargeable to its net savings, to protect it against any risk or reasonably determinable extraordinary activity whose adverse economic consequences could bring about losses greater than the indivisible accrued or available capital. It may likewise authorize the establishing of this reserve by request of the Board of a cooperative.
(d) Voluntary reserves. — The Board of every cooperative may provide periodic contributions to the voluntary reserves whose creation has been previously approved by the general assembly of members and delegates. Voluntary reserves may be established for any legitimate purpose that shall advance the interests of the cooperative or the cooperative movement, including contingencies, investments in 100% owned subsidiaries, investment in second degree financial enterprises and/or cooperative enterprises, institutional growth and development, or for education in cooperative matters and technical and professional training.
History —Oct. 28, 2002, No. 255, § 6.07.