P.R. Laws tit. 10, § 4122
In a valid contract through which one or more financial assets are transferred and which clearly and expressly sets forth the intention of the parties as to the fact that said transfer constitutes a purchase and sale or an assignment of financial assets, said manifest intention of the parties shall be conclusive in the absence of bad faith or fraud. The purchase and sale or assignment of financial assets shall be deemed as such regardless of whether:
(a) The documentation contemplates a guarantee agreement on the part of the seller or assignor or of a third party in favor of the purchaser or assignee relative to the solvency of the debtor under the credit that underlies the financial asset sold or assigned;
(b) the documentation contemplates any guarantee agreement on the part of the seller or assignor or of a third party in favor of the purchaser or assignee relative to the existence or validity of the financial asset sold or assigned;
(c) the documentation contemplates any term or agreement in the documentation that tends to indicate that the risk of loss under the financial asset sold or assigned has been retained, totally or partially, by the seller or assignor of said financial asset or by a third party;
(d) the documentation contemplates any term that tends to indicate that the seller or assignor of the financial asset, or a third party has retained some interest on or right over:
(1) The financial asset;
(2) the revenues generated by the financial asset, or
(3) the product resulting from the transfer of the financial asset;
(e) the documentation contemplates any term through which the seller or assignor of the financial asset or a third party is obligated to correct any payments deficiency under the financial asset;
(f) the documentation imposes an obligation or grants the right to the seller or assignor of the financial asset, or to a third party, to provide administration services or servicing and/or custody relative to the financial asset sold or assigned under terms and conditions that are usual for the industry;
(g) that the seller or assignor or a third party retains possession of the financial assets sold or assigned in the discharge of their rights or obligations for administering, providing, servicing or providing custody services;
(h) the accountable, taxable or regulatory treatment granted by the parties or by some other entity to the transfer of the financial assets, or
(i) the absence of a notice to the debtor under the financial asset sold or assigned of the transfer of said financial asset.
History —Feb. 23, 2007, No. 13, § 3.