P.R. Laws tit. 28, § 584
The Secretary of Agriculture of Puerto Rico is hereby also empowered to award parcels to the prospects selected according to this title, under a life contract of usufruct which shall stipulate, among other things, the payment of such semiannual rentals he may determine as fair and reasonable, to be determined on the basis of recovering the cost of the lands and other properties granted in usufruct for the term of forty (40) years, including interest at a rate of not less than two [percent] (2%) nor more than four percent (4%) computed on the amount due in each year. Said officer shall grant and transfer to the usufructuary the life usufruct of each farm so that he may till the same and receive the produce, advantages, and profits therefrom, preserving its form and substance, and subject, among other things, to the terms set forth hereinbelow, all of which are material and essential to the usufruct contract and to the compliance of which the usufructuary expressly binds himself, namely:
(a) The usufructuary shall live and work on the farm the object of the usufruct. He shall allow the construction of not more than two (2) houses on the farm pursuant to the regulation that to such effect the Secretary of Agriculture may approve.
(b) The usufructuary shall cultivate the farm and shall be at full liberty to select the products to which he shall devote the same, except as hereinafter provided; the agricultural operation of the farm by [sharecroppers] being strictly prohibited.
(c) The usufructuary binds himself to follow the soil conservation and improvement practices and any other agricultural practice recommended by the Secretary of Agriculture through his representatives.
(d) The usufructuary may not sell, transfer, exchange, cede, assign, or in any manner alienate or encumber, in whole or in part, the usufruct right granted to him, neither on the farm over which the said right is granted, nor the buildings, accessions, or existing improvements, or those that may, in the future, be constructed or made thereon, nor any right, title, or privilege arising from the contract; with the exception from this provision of any encumbrance in behalf of the Farmers Home Administration of the Department of Agriculture of the United States of America, in accordance with the laws and regulations concerning all the programs that may be administered by said Agency heretofore or hereinafter, which are not inconsistent with our purpose; and it is likewise authorized to foreclose any encumbrance that may be constituted to secure any aid or credit granted. Provided, That [any] violation of this clause of the contract shall vest any lawful rights whatsoever in purported acquirers, assignees, or creditors, but shall, on the contrary, be grounds for seizure, in behalf of the Secretary of Agriculture, of: (1) any payments made by the usufructuary; (2) any right the usufructuary may have in the usufruct so granted; and (3) all interest, rights and action which the said purported transferers and/or transferees, creditors and/or debtors, vendors and/or acquirers, have or may have in the land granted in usufruct, or in the improvements, buildings, accessions, or plantations existing thereon; the Secretary of Agriculture will be free to dispose of said land, construction, building, plantation, or improvement, without obligation to compensate or pay any sum of money to any person whomsoever for any reason; Provided, however, That the Secretary of Agriculture may, in his discretion, expressly authorize an usufructuary in writing to transfer, cede, exchange, or assign his usufruct right to another person who qualifies as such usufructuary, in which case, the payments made by the former, as well as the time he has been on the farm, shall be credited to the latter.
(e) The usufructuary may not establish on the farm, without the previous written consent of the Secretary of Agriculture, any business or industry other than of a purely agricultural nature, it being understood, that the establishment on the farm of stores, groceries, cafetines, bars, bazaars, shops, etc., is strictly prohibited.
(f) The usufructuary shall not erect on the farm any structure, building, or improvement of a permanent character, without the previous written authorization of the Secretary of Agriculture.
(g) In case of the termination of the usufruct for any cause whatsoever, the Secretary of Agriculture shall not be under obligation to reimburse the usufructuary any part of the amount which he may have paid thereto, nor to pay the usufructuary for improvements made or plantations existing on the farm, the usufructuary being entitled to remove such improvements and to harvest the crops within a reasonable term to be fixed by the Secretary of Agriculture. The buildings and/or improvements of a permanent character expressly authorized by the Secretary of Agriculture shall be paid thereby at the price at which said Secretary of Agriculture may assess same upon termination of the contract.
(h) The usufruct right granted shall be extinguished upon the death of the usufructuary; it being understood, however: (1) that if the usufructuary should die leaving a surviving spouse with or without children of the usufructuary, whether minors or of legal age, the Secretary of Agriculture may at his option, if he deems it advisable, grant the right of usufruct over the farm to the surviving spouse, by himself or herself, if there are no children, or by himself or herself and in representation of the usufructuary’s minor children, if any, both being obligated to fulfill each and every one of the terms of the contract; surviving spouse shall be considered the person cohabiting with the usufructuary at the time of his death, whether or not lawfully married; (2) if the usufructuary should die without leaving a surviving spouse, but leaving children of legal age, only, or children of legal age and minor children, the Secretary of Agriculture may, in his discretion, grant the usufruct of the farm to the child of legal age that it may deem advisable who meets all the necessary requirements, where there are no minors; and when there are children of legal age and minor children, to that child of legal age who, in the judgment of the Secretary of Agriculture meets the necessary requirements for his own benefit and for the benefit of the usufructuary’s minor children, and in either case, he or the new usufructuaries shall strictly comply with all the terms of the contract; (3) if upon his death the usufructuary leaves no surviving spouse or children of legal age who are eligible, but leaves minor children duly represented, according to our laws, the Secretary of Agriculture may, in his discretion, on request of the legal representative of said minors, grant him the usufruct of the farm, and the minors shall fulfill all the terms of the contract, to which end their legal representative shall request and obtain the proper authorization; (4) if the usufructuary leaves no surviving spouse, neither minor children, nor children of legal age, who are eligible, according to the regulations of the Secretary of Agriculture, the usufruct of the farm shall revert to the Commonwealth of Puerto Rico, to whose benefit shall inure all the improvements, accessions, plantations, and buildings made or constructed by the usufructuary on the farm, the direct and useful dominion of which shall be consolidated therein with all the improvements, plantations, accessions, and buildings of whatever nature existing thereon, all of which shall pass to be of the sole and exclusive property thereof; and the said Commonwealth may, consequently, retain or dispose of them freely, without having to pay or indemnify any person whatsoever therefor; (5) the selection of any one of the persons herein mentioned as grantee of the usufruct of the farm in case of the usufructuary’s death, shall be made by the Secretary of Agriculture, according to the regulations thereof governing the matter; and the new grantee shall obtain that the other children of the usufructuary assign to him whatever right, title, interest, and actions they have or may have in any plantations, improvements, buildings, and accessions introduced in the farm by the usufructuary.
(i) The usufructuary shall allow the employees of the Secretary of Agriculture to enter the farm in order to inspect same and ascertain whether the terms of the contract are being complied with and whether the soil conservation and improvement practices and any agricultural practice recommended by the said officer are being followed.
(j) The usufructuary shall not be required to make any inventory or to give bond.
(k) The usufructuary shall bind himself not to remove or in any manner alter, nor allow anyone to alter or remove, the boundaries of the farm.
(l) The usufructuary shall be under obligation to maintain and cause to be maintained in full force and effect the rights of easements, franchises, grants, and permits in force, or which may be acquired in the future, for the benefit of the farm.
(m) It is expressly understood that upon payment by the usufructuary of the amount disbursed by the Secretary of Agriculture for the farm, plus interest thereon, as hereinbefore provided, his obligation to pay the semiannual rental above-mentioned shall cease, and he may from then on continue to enjoy the usufruct of the farm, without need of making any payment whatsoever, but he shall in any case comply properly and faithfully with all the conditions imposed by this act and by the regulations and any amendments thereto, approved by the Secretary of Agriculture.
(n) The regulations of the Secretary of Agriculture and any future amendments made thereto shall be an integral part of the contract.
(o) Failure to pay any of the rentals agreed upon when they fall due, and/or failure to comply with any of the conditions herein prescribed and/or with the regulations approved by the Secretary of Agriculture and the amendments thereto, shall automatically bring about the extinction of the right of usufruct granted, the usufructuary having to vacate the farm and leave it free and clear at the disposal of the Secretary of Agriculture. In such case, the usufructuary shall have no rights other than those granted him in subsection (g) of this section.
(p) The violation of any of the clauses of the usufruct contract shall entail the extinction of the usufruct right, as well as the total seizure in favor of the Commonwealth of Puerto Rico of all payments made by the usufructuary and of all buildings, improvements, or plantations existing on the farm, without need of a judicial pronouncement therefor, and without being obligated to pay any amount to any person for any reason; Provided, however, That the Secretary of Agriculture may, in the exercise of his discretion, exempt from the provisions of this clause such usufructuaries who, in the opinion of the Secretary, have not intentionally violated the contract.
(q) The adjudication of the right to usufruct through a contract authorized in this act may also be carried out through certificates of the adjudication of the right to usufruct issued by the Secretary of Agriculture whom he delegates. Said certificates shall be registrable in the Property Registry of Puerto Rico, and shall specify all the conditions and restrictions established in this section, as well as the name and personal information of each usufructuary and any other data needed for their registration.
History —Dec. 7, 1966, No. 5, p. 24, § 1; May 30, 1970, No. 59, p. 156; June 7, 1977, No. 32, p. 60; Mar. 20, 1980, No. 2, p. 4, § 2.