P.R. Laws tit. 13, § 354b
(a) The Government Development Bank shall establish the eligibility requirements to be met by any person interested in buying or acquiring tax receivables or the right to receive payments on account of tax receivables or any interest thereon, including the following conditions:
(1) No person who owes any taxes to the Commonwealth of Puerto Rico, the municipalities, or its agencies or instrumentalities, shall be eligible.
(2) Any person who wishes to be found eligible shall submit before the Department of the Treasury:
(A) A sworn statement attesting that he/she meets all eligibility criteria established by law and by the Government Development Bank, and
(B) all documents needed to prove that said person is eligible.
(b) No buyer or acquirer of tax receivables or the right to receive payments on account of tax receivables or any interest thereon may otherwise convey or assign the tax receivable acquired or said right to receive payments on account of tax receivables or any interest thereon to persons identified as non-eligible persons, as provided in the above clauses of subsection (a) of this section. Said buyer or acquirer shall make a representation in the contract whereby tax receivables or the right to receive payments on account of tax receivables or any interest thereon are sold or transferred, that he/she does not plan to sell, exchange or otherwise convey said right or interest to any non-eligible person.
(c) In the event that any sale or transfer is conducted in violation of the provisions of this section, the tax receivable or the right to receive payments on account of tax receivables or any interest thereon, shall revert to the Department of the Treasury, and the buyer or acquirer shall not be entitled to any refund for amounts paid. Furthermore, the buyer or acquirer shall return to the Department of the Treasury any amount he/she has earned as part of the right to receive payments on account of tax receivables or of any interest thereon. The preceding notwithstanding, the provisions of this subsection shall not prevent non-eligible persons from being able to own a security backed by tax receivables or the right to receive payments on account of tax receivables or any interest thereon.
(d) Public entities shall be deemed to be eligible persons for buying or otherwise acquiring tax receivables or the right to receive payments on account of tax receivables or any interest thereon.
(e) The Government Development Bank and any subsidiary, affiliate or entity attached thereto (whether existing or as created in the future), entirely in its discretion, shall be authorized to buy or acquire from the Department of the Treasury tax receivables or the right to receive payments on account of tax receivables or any interest thereon. This includes the Puerto Rico Tax Receivables Trust created by § 354k of this title.
History —July 20, 2008, No. 125, § 5.