Esta ley establece el "Fondo de Inversión y Desarrollo Cooperativo de Puerto Rico" como una corporación sin fines de lucro para fomentar el desarrollo socioeconómico a través de la coinversión en empresas cooperativas elegibles. Define la estructura del Fondo, sus miembros, la composición de la Junta de Directores, los criterios de elegibilidad para proyectos, las exenciones fiscales y de regulación, los compromisos de inversión de las entidades cooperativas y del Gobierno de Puerto Rico, las políticas operacionales, los conflictos de interés, la supervisión y los requisitos de informes anuales. También establece responsabilidades civiles y penales por violaciones a la ley.
(Approved August 18, 2002)
To establish the "Investment and Cooperative Development Fund of Puerto Rico Enabling Act."
In compliance with its programmatic commitments, the present administration has an appropriate sum of up to twenty-five million $(25,000,000)$ dollars for the co-investment of capital in cooperative enterprises. These funds would match the investment to be made by the Cooperative Movement in said enterprises.
With the purpose of implementing the public policy of investing in the new enterprises, it is necessary to define the juridical and operational frame of the Fund created by this Act, which shall meet the following parameters:
It must be indicated that the investment function of the Commonwealth does not require the creation of a juridical entity, but it is necessary to agglutinate or consolidate the contributions of the multiple entities of the
Cooperative Movement. Among them we can mention more than 150 savings and credit unions, the two insurance cooperatives, the Cooperative Bank, and the multiple cooperatives of various types. Although it is not necessary to legislate to create this juridical entity, it is necessary to amend the statutory provisions that regulate the investments allowed to the various cooperative entities, to make the channeling of funds for the development of new cooperative enterprises more viable.
This Act has the purpose of promoting the socio-economic development of Puerto Rico, through the co-participation of the Cooperative Movement and the public sector in the formation of cooperative enterprises directed towards projects or activities that generate employment, economic activity, and social development in Puerto Rico for which an adequate capitalization is not easily achieved.
Section 1.- Title This Act shall be known as the "Investment and Cooperative Development Fund of Puerto Rico Enabling Act."
Section 2.- Public Policy The development and expansion of the Cooperative Movement in the Commonwealth of Puerto Rico is an essential element for the economic growth of the country and to attain the full employment, social development, and prosperity of all citizens. Likewise, the Cooperative Movement needs and requires new methods for financing the capital investments required for the development of new cooperative enterprisers. The assistance provided in this Act, including the co-investment of Commonwealth resources and those of the Cooperative Movement, is, therefore, in the public interest and serves as a public purpose to foster the economic and social development of the
citizens of the Commonwealth of Puerto Rico. The purpose of this Act is to execute and put into effect the decision of the Legislature and therefore to offer the Cooperative Movement of Puerto Rico an alternate financing method to promote, develop, and establish new enterprises.
Section 3.- Definitions For the purposes of this Act, the following terms and phrases shall have the meaning stated below:
(a) "Fund": means the non-lucrative corporation incorporated by the Cooperative Development Administrator pursuant to the General Corporations Law as provided in Section 4 of this Act.
(b) "Cooperative": means any cooperative entity organized under the laws of the Commonwealth of Puerto Rico. This term includes the cooperative credit and savings unions organized under Act No. 6 of January 15, 1990 as amended or its successor act; the Insurance Cooperatives organized under Chapter 34 of the Insurance Code, as amended, or its successor act; the Cooperative Bank organized under Act No. 88 of June 21, 1966, as amended or its subsequent act; and the Cooperatives of different types organized under Act No. 50 of August 4, 1994, as amended, or its successor act.
(c) "Executive Director": means the chief executive officer responsible for the administration and daily operation of the Office of the Fund, who shall be appointed with the consent of two thirds of the members of the Board of Directors.
(d) "Eligible Cooperative Enterprise": means a cooperative group registered in the Cooperative Development Administration, or an entity organized as a Cooperative which is related to, or whose
purpose is to perform economic activities in the Commonwealth of Puerto Rico, including: (1) The manufacture, processing, assembling, or storing of goods and materials for sale or distribution (2) mercantile or commercial enterprises; (3) service and transportation enterprises; (4) recreational or tourism activities; (5) housing; (6) agricultural activities; (7) agricultural and livestock industries; (8) commercial fishery; (9) research or development activities; (10) activities that propend to the integration of the Cooperative Movement; (11) other activities which generate economic activity and/or jobs as determined from time to time by the Board of Directors of the Fund; or any combinations of the abovementioned activities or purposes.
The Board of Directors of the Fund shall adopt, through internal regulations, specific parameters to determine the eligibility of the Cooperative Enterprises, among which it may contemplate the generation of an increasing economic activity.
(e) "Board": means the Board of Directors of the Corporation.
(f) "Costs": means all costs incurred in the acquisition, construction, or those otherwise incurred to provide for the operations of any Eligible Cooperative Enterprise. These shall include, but shall not be limited to: construction costs, cost of acquisition of the entire
property, including rights on lands and on any other property, real as well as personal, improved or not; costs of demolition, removal, and relocation of any buildings or structures on the land thus acquired, including the cost of acquisition of any land on which said buildings or structures shall be transferred or relocated, cost of all machinery, furniture, and equipment; the payment or provision for the total or partial payment, of any existing debt incurred by or in behalf of a debtor or user to provide funds for the payment of the costs of a project or projects; financing charges, and any other charges, and interest incurred prior to, or during the construction, and if it is deemed pertinent by the Fund and for the period it determines after the completion of the construction; reserves for debt service; or any other reserve required by the Fund; cost of studies, market analyses, surveys, plans and specifications; cost of health service consultants; financial advisors, other special services, and other necessary or incidental expenses to determine the viability or practicality of the project; cost of the preparation, development, and beautification of lands; initial cost for occupying the project or any part thereof; administrative expenses, as well as other necessary or incidental expenses for the financing and establishing of the Funds office and/or the project, including the reimbursement to any government agency or any debtor or user of any expenses incurred, with respect to said project, with the prior consent of the Fund, that would have been costs of the aforesaid project if the same had been directly incurred by the Project, and any other charges or administrative fees or financing charges imposed by the Fund; and the payment or reimbursement to any
debtor or user of the costs of a projects incurred by said debtor or user prior to the closing date of the investment to be made by the Fund or by a financial institution, which has obtained resources from the Fund to finance projects, but said prior period shall not exceed the period determined by the Fund which shall not exceed two (2) years. Costs shall also mean the operating expenses of the Office of the Fund.
(g) "Investment Agreement": shall mean the agreement or agreements made between the Fund and any Eligible Cooperative Enterprise, whether directly or indirectly, with the purpose of providing financial resources by means of investment or long-term financing to subsidize the Costs of the Eligible Cooperative Enterprise; it shall also mean, without being understood as a limitation to: leasing contracts, sale in installment sales, purchase, conditional sale, sale of a leasing agreement, loans, mortgage, personal property lien, leasing, or any other financing contract or a combination of the above that the Fund may determine.
(h) "Office of the Fund": shall mean the administrative and operating structure of the Corporation directed by an Executive Director.
Section 4.- Incorporation of the Fund It is hereby provided that the Administrator of the Cooperative Development Administration shall incorporate a non-profit corporation, organized under Act No. 144 of August 10, 1995, as amended, also known as "General Corporations Act of 1995" within a term of one hundred and twenty (120) days after the effective date of this Act. Said corporation shall be used as the investment vehicle of the Cooperative Movement for the
development of eligible cooperative enterprises. The certificate of incorporation of the new entity shall include at least the following:
(a) Denomination of the Fund: The Corporation shall be denominated as the "Cooperative Development and Investment Fund."
(b) Members of the Fund: All cooperative entities that contribute to the corporation, and the Government Development Bank of Puerto Rico, shall be members of the Corporation.
(c) Board of Directors: The certificate of incorporation shall provide that the Board of Directors shall be composed of nine (9) members, including the following:
(i) The Chairperson of the Government Development Bank (ii) The Cooperative Development Administrator (iii) The Executive Director of the Industrial Development Company (iv) The Administrator of the Commercial Development Company
These officials may delegate their participation on the Board by designating an official who will represent the Agency permanently, and who shall answer to the head of his/her agency and be responsible for the operations of the Corporation. 2. Representatives of the Cooperative Movement
(i) One representative of the League of Cooperatives (ii) One representative of one of the Insurance Cooperatives. The first representative of the insurance cooperatives shall be designated by the Administrator, acting as incorporator,
and shall hold office for a term of two (2) years, after which he/she shall be succeeded by the representative of the other cooperative insurer. Subsequently, the representation of the insurance sector shall alternate between both cooperatives every two (2) years. In the event new insurance cooperatives are organized, their representatives shall assume alternate representation on the Board once the initial investments similar to those required by this Act have been made. (iii) One representative of the Cooperative Bank (iv) One representative of the Cooperative Credit and Savings Unions who may be a member of the Board of Directors or the Executive Chairman of said Cooperatives. The first representative of the Credit and Savings Cooperative shall be designated by the Administrator, as incorporator, and shall hold office for a term of one (1) year. Subsequent representatives of the Cooperative Credit and Savings Unions shall be selected by the Cooperative Credit and Savings Unions that contribute to the fund. The Certificate of Incorporation shall contemplate for this representative the same eligibility criteria that apply to the representatives of the Cooperative Movement before the Board of the Corporation for the Supervision and Insurance of Cooperatives, provided in Act No. 114 of August 17, 2001. 3. One representative of the public interest with recognized capability and business leadership, who shall be designated by the vote of two-thirds (2/3) of the other members of the Board.
The Board of Directors shall be constituted within the first ten (10) days after the Annual Assembly is held. The Chairperson and all other members of the Board shall be elected in said constitutional assembly. The Board of Directors shall appoint the Executive Director of the Corporation in said meeting or in its first regular meeting.
The Certificate of Incorporation shall provide for and authorize the remuneration of the directors under similar allowable parameters for depositary institutions in Puerto Rico.
(d) Regulations of the Board of Directors: The Board of Directors shall adopt regulations to govern its functions, which shall include the following matters among others: the number of members that shall constitute a quorum; number of votes required to approve agreements; number of annual meetings of the Board; grounds and procedures for the removal of a Board member; the right of the members of the cooperative sector and the public interest to be paid per diems and mileage expenses; the responsibilities of the Executive Director, the public policy and organization of the Office of the Fund; and the functioning and procedure to convoke the Annual Assembly.
(e) Purposes and powers of the Fund: The certificate of incorporation shall also provide that the corporation shall have as its main purpose to act as the investment and development vehicle of cooperative enterprises in collaboration with the Commonwealth. The corporation shall have all those corporate powers allowed by law and that contribute to the achievement of its objectives.
(f) General Eligibility Criteria of Projects: The certificate of incorporation shall only provide for the investment of the resources of the Fund, in cooperative enterprises that foster the generation of jobs, socio-economic development, or that lead to integration in the Cooperative Movement.
(g) Institutional Changes: The certificate of incorporation shall provide that every change to the certificate of incorporation shall require the approval of the members of the Fund.
Section 5.- Exemptions It is hereby resolved and stated that the purpose for which the Fund is created and for which it shall exercise its powers, is the strengthening of the Cooperative Movement, the promotion of economic development, as well as the general welfare, such public purposes being for the benefit of the People of Puerto Rico, and that the exercise of the powers conferred by this Act constitute compliance of functions of the highest public interest. Therefore:
(a) The Fund, its subsidiaries and/or affiliates, as well as the revenues from all its activities or operations, all its assets, its capital, its reserves and surplus, and those of its subsidiaries and/or affiliates, and the income, dividends, interest paid on account of said stocks and bonds, shall be exempted from all kinds of taxes on income, property, excises licenses and any other taxes imposed or henceforth imposed by the Commonwealth of Puerto Rico or any political subdivision thereof.
(b) Furthermore, the Fund, and its subsidiaries and/or affiliates, shall be exempt from the payment of duties, excise taxes, or state or municipal duties, including the payment of charges for licenses, patents, permits, and registrations; the payment of commissions,
fees, internal revenue stamps and/or vouchers, related to the issuing of all kinds of public and private documents; the payment of fees, patents, internal revenue stamps and/or vouchers related to the registration of the same in the Property Registry or any other public registry or government office; and the payment of fees, patents, internal revenue stamps and/or vouchers related to issuing of certificates by said registries or any other government office. The Fund and its subsidiaries and/or affiliates shall also be exempted from the payment of fees, patents, internal revenue stamps, excise taxes, or duties required by the Courts of Puerto Rico or by any other agency, instrumentality, public corporation of the Commonwealth of Puerto Rico or any political subdivision thereof.
(c) The Fund and any securities, instruments, certificates, stocks, shares or other evidence of investment participation issued by said Fund shall be exempted from the application of the provisions of Act No. 60 of July 18, 1963, known as the "Puerto Rico Uniform Securities Act," of Act No. 6 of October 19, 1954, as amended, known as the "Investment Companies of Puerto Rico Act," and of Act No. 214 of October 14, 1995, as amended, known as the "Financial Intermediation Act."
Section 6.- Investment of Cooperative Entities
(a) With the purpose of consolidating the resources of the Cooperative Movement for its development, the following is hereby provided:
described below. The three (3) payments of the initial contribution shall be made no later than one hundred and twenty (120) days after the incorporation of the Fund, on July 31, 2003 and on July 31, 2004, respectively. The first payment of the initial contribution shall be computed on the basis of the audited financial statement of each cooperative corresponding to calendar year 2000, or fiscal year 1999-2000, as pertinent. The second and third payment shall be computed on the basis of the subsequent audited statements, provided that the total initial contribution shall never be less than the sum calculated, based on the audited financial statement corresponding to calendar year 2000 or fiscal year 1999-2000, as it corresponds. Each one of the three (3) payments of the initial contribution shall be computed as follows:
(i) For cooperative credit and savings associations, a sum equivalent to one (1) percent of its venture capital reserve, less accrued losses from previous years and current losses. These cooperatives shall make their initial investment when the aforesaid one (1) percent represents an amount equal to, or greater than one thousand $(1,000)$ dollars. (ii) (sic) For Cooperative partnerships organized under Act No. 50 of August 4, 1994, as amended, the sum equivalent to one (1) percent of their service or social reserves, less losses accrued from previous years and current losses. (iii) For Insurance Cooperatives organized under Chapter 34 of the Puerto Rico Insurance Code, as amended, the sum equivalent to two (2) percent of their total capital, less their
assigned withheld reserves and/or savings, as shown in the corresponding audited financial statement presented under statutory rules. (iv) For the Cooperative Bank the sum equivalent to one (1) percent of its undistributed capital. 2. Subsequent Investments: As of 2005, and subsequently, any cooperative partnership shall contribute a sum equivalent to one (1) percent of its net reserves, except the insurance cooperatives whose contributions shall be two (2) percent of their reserves. This sum shall be computed on the basis of the most recent audited financial statement of the cooperatives, and shall be payable to the Fund on or before July 31 of each year. The cooperatives shall not be required to make subsequent contributions once the amounts contributed by the Cooperative Movement reach the sum of twenty-five $(25,000,000)$ million dollars. No cooperative, shall individually be bound to make contributions that exceed ten (10) percent of the total combined contribution to the Fund from the Movement and the Commonwealth, which is of fifty million $(50,000,000)$ dollars. 3. The sums invested by the Cooperatives to the Fund shall be deemed for all purposes as an allowable investment asset and shall be evidenced by stock shares issued by the Fund upon receipt of the investments required herein. All net income attributed to the investments of the cooperatives obtained by the Fund, after defraying their operating expenses, and after deducting the reserves for possible losses, other reserves adopted by the Board of the Fund from time to time by the
majority vote of two thirds (2/3) of its members, and after withholding a sum equivalent to two (2) percent of their net income as an additional capital reserve, the partial or total remainder may be donated to the Permanent Scholarship Fund for university students, in the cooperative field, or may be returned to the participating cooperatives and to the Government Development Bank in proportion to the contributions made by each of them, as determined by the Board.
The Cooperatives may make investments in addition to those required in subsection
(a) of this Section, through the acquisition of assets duly issued by the Fund from time to time. For the respective cooperatives, such investments shall be subject to the regulations applicable to said institutions pursuant to this Act.
Section 7.- Investment Commitment of the Commonwealth of Puerto Rico-
Pursuant to the public policy of the Commonwealth of Puerto Rico in behalf of the development of the Cooperative Movement through coinvestment, the Government Development Bank is hereby empowered and authorized to invest up to the sum of twenty-five $(25,000,000)$ million dollars, matching the investment made by the cooperative entities to the Fund. It is hereby provided that the Government Development Bank shall make its first investment of five million $(5,000,000)$ dollars in the Fund, on or before one hundred and twenty (120) days after the incorporation of the fund, without having to wait for the accrual of said sum by the Cooperative Movement.
Within sixty days after the constitution of the Board of Directors of the Fund, the investment commitment of the Government Development Bank in the Fund shall be set forth in a written co-investment agreement subscribed between said bank and the Fund. Said agreement shall define the terms and conditions under which the investment of the Commonwealth shall be mandatory; the agreement shall have a minimum term of effectiveness of ten (10) years. During the effectiveness of the co-investment agreement, the amounts of the investment commitment of the Government Development Bank, that have not been invested in the Fund, shall be kept segregated and invested pursuant to the investment policy adopted to such purpose by the Board of Directors of the Fund, with the affirmative vote of the government representatives. A reasonable portion of the yield of the funds shall be turned over to the Fund to defray its operating budget, duly approved by the Board of Directors. The unencumbered balance of the yield shall be used to replace the funds available for investment up to the sum of the maximum commitment of twenty-five million $(25,000,000)$ dollars. Any available surplus may be used to capitalize the Fund or for educational donations or contributions for other uses, as authorized at a regular meeting by the majority of the members of the Fund.
Within sixty (60) days after the approval of this Act, the Government Development Bank shall advance the sum of five hundred thousand $(500,000)$ dollars to the Cooperative Development Administration to defray the expenses of the establishment of the Office of the Fund, the organization and initiation of the operations of the fund, including its incorporation procedure, the drafting of the corporate by-laws of the Fund, the drafting of the investment policies of the Fund, the development of eligibility parameters of projects, and the policies and evaluation procedures of the
projects. Said advance shall be charged to the first operating budget of the Fund.
Section 8.- Gifts or Contributions Private Corporations, Trusts, International Organizations, Community or Workers Enterprises, Regional Cooperative Enterprises or private entities, or natural persons may make donations or contributions to this Fund and shall be exempted from the payment of all type of taxation; or the payment of duties, excise taxes, permits, registrations; the payment of fees, excise taxes, internal revenue stamps and or vouchers related to the issuing of all types of public and private documents; payment of charges, fees, duties, internal revenue stamps and/or vouchers related to regarding the registration there in the Property Registry or any other public registry or government office.
Section 9.- Consideration of Projects
(a) Any person may submit a proposal to the Fund to invest in an Eligible Cooperative Enterprise by using the forms and following the instructions prescribed by the Fund. Said proposal shall establish the type and location of the Eligible Cooperative Enterprise and shall include any other pertinent information and data requested by the Fund so that it can evaluate the proposal adequately. The Fund shall require all the information it deems pertinent from the applicants on the Eligible Cooperative Enterprise proposal, experience of the persons involved, history, past and present financial situation, record of service and the integrity and capacity of the management team of the enterprise, the way that the project adjusts to the criteria and requirements of
the Fund, and any other factors deemed relevant or convenient to guarantee compliance with the purposes of this Section.
(b) In the determination as to making an investment in any Eligible Cooperative Enterprise under the provisions of this Act, the Fund shall be guided by, and shall observe the following minimum criteria and requirements, provided, that the determination of the Fund, regarding its compliance with such criteria and requirement shall be final and binding:
Section 10.- Operating Policies of the Fund As part of the its operations, the Fund shall at least define and adopt the following policies, norms, and procedures:
In addition to executing Investment Agreements, the Fund may use its office and operating budget resources to provide managerial support to eligible cooperative enterprises. Said support may be through direct managerial support or through continuing education programs, both, in areas such as management, accounting, finances, and marketing.
Section 11.- Conflicts of Interest No official, director, agent, or employee of the Commonwealth of Puerto Rico or its instrumentalities, the Fund or any Cooperative shall have, direct or indirect, personal interest in any contract with the Fund, or in any Eligible Cooperative Enterprise or in real or personal property to be used by, or in any Eligible Cooperative Enterprise.
Any person who violates the provisions of this Section shall be discharged from his/her office and upon conviction of a felony, shall be subject to a fine that shall not exceed five thousand $(5,000)$ dollars, or imprisonment for a maximum term of five (5) years, or both penalties, at the discretion of the Court.
Section 12.- Operation and Supervision of the Fund
(a) Administration. The Board shall be responsible for the administration and operation of the Fund and shall appoint an Executive Director who shall have the responsibility of administering the Office of the Fund, the processing of applications, analysis, and evaluation of the projects to be granted, on a daily basis.
(b) Regulations. The Fund shall be subject to prudent and sound administration rules in harmony with its economic promotion and development nature, through the investment of capital in eligible cooperative enterprises. Said rules shall be defined through regulations expressly adopted thereto jointly with the Office of the Commissioner of Financial Institutions, the Public Corporation for the Supervision and Insurance of Cooperatives, the Insurance Commissioner, the Inspector of Cooperatives, and the Cooperative Development Administration.
(c) Supervision. The Fund shall be subject to supervision and monitoring by the Commissioner of Financial Institutions and the Public Corporation for the Supervision and Insurance of Cooperatives, who shall see to compliance by the Fund of the provisions of the Regulations described in subsection
(a) of this Section and all other laws applicable to the Fund.
(d) An Administrative fine not greater than five thousand $(5,000)$ dollars, may be imposed on any natural and/or juridical person who incurs violations of the provisions of this Act or the regulations adopted thereunder, or who violates its orders or resolutions; and to any member of the Board, or any executive official, or employee thereof who is responsible for such violation.
(e) Secondary Jurisdiction. In view of the participation and investment of different cooperative entities in the Fund, the following regulatory entities shall have full access to the books and records of the Fund without impairing the provisions of subsection
(b) of this Section:
(f) Supervision of the Comptroller. The moneys, funds, and credits contributed by the Government Development Bank to eligible cooperative enterprises, shall be subject to the supervision and audits made by the Office of the Comptroller of the Commonwealth of Puerto Rico pursuant to Article III Section 22 which precedes Title 1 of Act No. 9 of July 25, 1952, as amended.
Section 13.- Annual Report The Fund shall render an annual report to its members, to the Government Development Bank, to the Governor, and to the Legislature on all its operations and activities, no later than thirty (30) days following the date it is approved by the Board. The report shall include the following: (1) A financial statement certified by a certified public accountant.
(2) An income and expense statement for the year corresponding to the report. (3) Detailed statements on the investments made by the Eligible Cooperative Enterprise Fund during the year.
Section 14.- Annual Assembly The Fund shall hold an annual informative assembly of all the cooperatives within ninety (90) days following the close of its annual operations. In said assembly, the annual report indicated in Section 12 of this Act shall be rendered, and the representatives of the Cooperatives shall be elected. In the event there are causes that prevent the holding of the assembly within said period, the Board may, by the consent of two thirds (2/3) of its members, defer the holding of the same for a maximum period of one hundred and twenty (120) days.
Section 15.- Civil Liability Any natural or juridical person who obtains, requests, or attempts to obtain an investment by the Fund, for him/herself, or for an Eligible Cooperative Enterprise, by means of a false statement on a material fact, or by omitting to consign a material fact needed to prevent that the statements made, under the circumstances said statements were made, lead to an error (the Fund not knowing its falsehood or omission), and does not sustain the burden of proof that he/she did not know and that by exercising reasonable prudence, could not have knowledge about the falsehood or omission, shall be liable to the Fund, that Fund may file suit to recover the moneys contributed, in addition to interest at the rate that applies to costs, and reasonable attorney fees plus interest at the rate applicable to court judgments, as provided by the regulations approved to such effects by the Finance Board created by Sections 2001 et seq. of Title 7, commencing on
the date the Fund made the investment, reasonable costs and attorneys fees less the amount of any income received by the Fund derived from the Investment Agreement. The rights and remedies provided by this Section are in addition to any rights of remedies that the Fund may have, pursuant to the provisions of other applicable legal provisions.
Section 16.- Felonies Any natural or juridical person who incurs a felony, upon conviction, shall be punished by imprisonment for a fixed term of six (6) years, if the person:
(a) Withdraws or makes an inappropriate application of moneys, funds, or credits of the Fund, or of moneys, funds or credits of the Fund invested in an Eligible Cooperative Enterprise.
(b) Makes a false entry in any book, report, financial statement of the Fund or of an Eligible Cooperative Enterprise with the intention of defrauding the Fund, Eligible Cooperative Enterprise, or any other natural or juridical person, or with the intention of deceiving any executive officer or persons appointed to audit, examine or investigate the affairs of the Fund.
(c) Furnishes false information on any application or document submitted to the consideration of the Fund with the purpose of negotiating, obtaining, or that is otherwise related to an Investment Agreement, or any other document, with the intention of defrauding the Fund.
(d) Is in charge of receiving, guarding, transferring or disbursing money, funds, or credits of the Fund, or money, funds, or credits of the Fund invested in an Eligible Cooperative Enterprise, that:
obtained personal financial profit or not, shall be punished with the penalty provided herein.
Section 17.- Severability If any provision of this Act is declared null or unconstitutional by a court with jurisdiction and competence, said statement shall not affect nor invalidate the remainder of this Act. The effect of said declaration of nullity or unconstitutionality shall be limited to the provision that would thus has been declared null or unconstitutional.
Section 18.- Effectiveness This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 198 (H.B. 2208) of the $3^{ ext {rd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to establish the "Investment and Cooperative Development Fund of Puerto Rico Enabling Act, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $6^{ ext {th }}$ of August of 2004.
Elba Rosa Rodríguez-Fuentes Director