P.R. Laws tit. 3, § 8161
The following terms shall have the meaning stated bellow and the words used in singular shall include the plural, and vice versa:
(a) Bank. — Shall mean the Government Development Bank of Puerto Rico.
(b) Lease contract. — Shall mean that contractual agreement between the lessor and the lessee in which the lessee is granted the right to use and enjoy personal property of the lessor, for a specific term in exchange for certain previously stipulated periodic payments.
(c) Financial lease contract. — Means a lease contract that complies with or contains one of the following requirement:
(1) Ownership of the personal property leased is transferred to the lessee upon conclusion of the lease term;
(2) contains a purchase option for the leased personal property at a value substantially less than the fair market value of said personal property a the time the option is exercised;
(3) the term is equal to or greater than seventy-five percent (75%) of the useful life of the personal property leased, or
(4) the present value of the minimum payments, excluding administrative expenses, is equal to, or greater than ninety percent (90%) of the fair market value of the leased personal property.
(d) Financing contract. — Means a financial lease contract and any other type of contract on personal property that, in the Bank’s judgment, should be treated as a debt obligation of the lessee government entity for a period of more than one (1) fiscal year.
(e) Covered contract. — Means, for purposes of this chapter, any lease contract or financing contract that encumbers the budgetary resources of the government entity for a period of more than one (1) fiscal year.
(f) Personal property. — Means property or properties that may be transferred because of their own nature, that may be transported from one point to another without impairing anything else that is attached, or those that by law are defined as personal properties and are the subject of the covered contract. Excluded are properties that are assigned, sold, or transferred for a term of less than one (1) year.
(g) Government entity. — Means the Commonwealth of Puerto Rico and all of its departments, agencies, boards, commissions, committees, instrumentalities, public corporations and municipalities.
(h) Private entity. — Means any natural or juridical person other than a government entity.
(i) Regulations. — Means the regulations adopted by the Bank under § 8163 of this title.
History —Sept. 3, 2003, No. 265, § 2.