P.R. Laws tit. 7, § 1368g
(a)
(1) The Corporation may direct that a cooperative be placed under emergency receivership or management under receivership, when, after an audit, investigation, examination or inspection, it is shown that the cooperative is undergoing the situations provided in §§ 1334 et seq. of this title.
(2) The Corporation shall hold a hearing before issuing an order to place a cooperative under receivership. Nevertheless, the Corporation shall issue a provisional order decreeing the receivership without need to hold a hearing, when in its judgment, the condition of the cooperative is of such a nature that it is causing or can cause irreparable damage to its interests, to that of the members, or of the persons with interests or deposits in it. When the Corporation issues an emergency receivership order, it shall hold an administrative hearing within the ten (10) days following the date of notice thereof, to determine if it is made permanent or is revoked.
(3) When the Corporation orders the emergency management or receivership of an ensured cooperative, the Corporation shall act as an interim manager or trustee, assuming the powers and functions of management or of the boards of directors and operating the institution pursuant to the regulations adopted to such effect. The Corporation shall perform its functions as trustee through its officials, or through a contracted third party. In every case, the official or agent representing the corporation shall be a person of unimpeachable moral integrity and repute, with the managerial, financial, accounting and business knowledge that allow him/her to perform a provisional administrative or rehabilitation process in the shortest possible term.
(4) The emergency management shall not exceed sixty (60) days, which term may be extended by the Board of Directors of the Corporation. In the event the emergency management should exceed the term of one hundred and eighty (180) days, the intervention by the Corporation in the cooperative shall be deemed as a receivership, subject to the provisions of subsection (b) of this section.
(b)
(1) Every receivership shall have as its purpose and objective the protection and the immediate stability of the cooperative and the prompt installation of new directive and managerial bodies. During receivership, the Corporation shall take immediate measures as required to safeguard the integrity and stability of the institution. The official or representative agent of the Corporation, designated as the agent of the trustee, shall submit a working plan to the Board of Directors of the Corporation that shall contemplate the following, as a minimum:
(A) Special measures adopted by the trustee;
(B) measures pending implementation;
(C) procedure to designate new directing and management bodies;
(D) financial rehabilitation plan;
(E) operating agreement proposal or memorandum of understanding, and
(F) financial and technical support that the cooperative shall receive by other first, second, or third degree cooperative entities.
(2) The agent of the trustee shall present a working plan to the Board of the Corporation within a term that shall not exceed one hundred and twenty (120) days after the trusteeship is established. If there are special circumstances, this term can be extended by the Board of the Corporation for an additional term of sixty (60) days. The working plan shall not contemplate any contracting, or the imposition or assumption of extraordinary expenses that do not correspond to the regular course of business of the cooperative, unless they are approved by two-thirds (2 / 3) of the Board of Directors of the Corporation, or are subject to ratification by a majority of the new Board of Directors of the Cooperative to be designated, as provided below. Once approved by the Board of the Corporation, the agent of the trustee shall proceed to implement it.
(3) The designation of new boards of directors shall take effect no later than one hundred and eighty (180) days after the working plan is approved. The designation of new boards of directors shall be carried out by holding a special assembly of members or of delegates, as the case may be, called and directed by the Corporation. The election of the new members of the boards of directors shall provide for the staggering of terms as required in this chapter. The new Boards of Directors shall assume their functions thirty (30) days after their selection. During said period, the new boards of directors shall receive all the information regarding the financial rehabilitation plan, and the operating agreement or memorandum of understanding that shall govern the operations of the cooperative. As of that date, the trusteeship shall be deemed to have concluded.
History —Oct. 28, 2002, No. 255, § 8.08.