P.R. Laws tit. 7, § 3036
(a) Profits of the fund. — The Bank shall have preferred participation in the profits and income obtained by the fund.
(1) The profit rate of the proprietary interests of the Bank shall be equal to two percent (2%) over the prime rate, which shall be determined by the Bank through regulations. The percent[age] of the profits of the Bank shall by payable annually commencing from the issuance of the proprietary interests of the Bank and it shall be payable from the profits of the fund, if any.
(2) If for any reason (including the fact that there were no profits) the Administrator does not make the annual distribution to which the Bank is entitled for its holding of proprietary interests of the Bank, as provided in clause (1) of this subsection, the balance due shall be accrued and shall be deemed as a distribution in arrears.
(3) The Administrator shall not distribute the profits of the fund to holders of private proprietary interests of a fund until the amount owed to the Bank for its proprietary interests, including the distributions in arrears, is paid in full. After the amount of proprietary interests of the Bank is repaid, the Administrator may distribute the profits of the fund to the other investors.
(b) Losses and liquidation of a fund. — The distribution of the losses and the distribution in the liquidation of a fund shall be made in proportion to the private proprietary interests and the proprietary interests of the Bank in the fund, subject to the following adjustments:
(1) Private proprietary interests shall be reduced as provided in § 3033(k) of this title, by the amount of:
(A) The tax credits received free of charge, and
(B) the discounts the investor has received in the purchase of tax credits of the fund.
(2) The proprietary interests of the Bank shall be increased by the amount of tax credits sold or assigned by the Administrator of the fund, pursuant to the provisions of § 3033 of this title.
(3) In the event the Bank has not invested in the fund, the Administrator of the fund shall distribute the corresponding portion to the Bank, according to the amount of tax credits sold or assigned by the Administrator of the fund, as provided in § 3033 of this title.
(4) The losses sustained by the fund from its operations can not be claimed by the investors, partners, stockholders, or any other person on their income tax returns.
History —Jan. 28, 2000, No. 46, § 17.