P.R. Laws tit. 7, § 3024
(a) Capital of the fund. — The capital of each fund shall consist of restricted use capital and unrestricted use capital. The acquisition of private proprietary interests and/or Bank proprietary interests shall only be made in cash.
(b) Investment of the Bank. — The Bank may invest in a fund in Bank proprietary interests up to a maximum of one dollar ($1) for each dollar contributed by the private sector in private proprietary interests of said Fund.
(c) Minimum capital required. — Every entity that wishes to operate as a fund under this chapter shall have a minimum capital of ten million dollars ($10,000,000). This minimum capital requirement can be composed of private proprietary interests and Bank proprietary interests.
(d) Maximum bank proprietary interests in one (1) single fund. — The maximum amount of investments in proprietary interests of the Bank in a specific fund shall not exceed ten million dollars ($10,000,000), but the same may be increased by the Bank [from] time to time by a resolution of its Board of Directors.
(e) List of investors. — The Administrator of the fund shall keep a list or register of the persons who acquire proprietary interests in the fund, including such information established by the Commissioner through regulations to such effect.
(f) Loans. — A fund shall only borrow money under the “Small Business Investment Companies” program, administered by the federal Small Business Administration.
(g) Eligibility requirements. — Eligibility requirements to obtain investment in proprietary interests of the Bank shall be established by the Bank through regulations and shall take the following into consideration:
(1) Show the need of an investment from the Bank.
(2) Show the character and general reputation, economic solvency, business and financial experience of the petitioners, promoters, directors or general partners of the petitioners.
(3) Show the character, general reputation, knowledge, business and financial experience of the officials, directors, and/or general partners who shall direct the operations of the fund.
(4) Show that the fund shall operate according to the purposes and requirements established by the law and its regulations.
(5) Show that the fund is adequately capitalized pursuant to the requirements provided in this chapter.
(h) Diversity requirement. — The diversity requirements in the holding of proprietary interests in a fund are the following:
(1) There must be at least three (3) investors in each fund with proprietary interests, or at least one (1) acceptable institutional investor, without including the Bank, among those mentioned above, whose holdings and private proprietary interests are equivalent to at least fifty percent (50%) of the restricted use capital of the fund. These investors shall not be associates of the fund for which their shares are taken into consideration with the purpose of complying with the fifty percent (50%) requirement provided in this section. Any person who holds twenty-five percent (25%) or more, of proprietary voting interests in a fund shall be presumed to exert control over the fund.
(2) The diversity requirement provided in clause (1) of this subsection shall be met at all times during the existence of the funds created under this chapter. The criteria to be used to exempt a fund from the requirement provided in clause (1) of this subsection section shall be established by the Commissioner through regulations.
(3) If at any time a fund fails to comply with the diversity requirements provided in clause (1) of this subsection, the Administrator of the fund shall:
(A) Notify the Commissioner of the non-compliance within ten (10) days from the date thereof.
(B) Reestablish diversity within six (6) months following the date of non-compliance.
History —Jan. 28, 2000, No. 46, § 5; Sept. 2, 2000, No. 377, § 3[sic]