P.R. Laws tit. 18, § 369
The Pension Board shall prepare and put in effect such rules as it may deem advisable and necessary for regulating the granting of such loans, which shall be guaranteed by first mortgages on the property for which the loan granted is to be used; Provided, That when building is to be done, the borrower shall offer to the Pension Board as a guarantee for his loan while the work is being done and while the corresponding mortgage deed is being executed, two (2) sureties of recognized moral and financial solvency, in addition to the collateral guarantee of his monthly salary, from which shall be deducted such sum as the borrower is obliged to pay every month; Provided, That as soon as the mortgage deed is entered in the proper registry of property, the board shall notify the bondsmen, who shall be relieved from every obligation from and after that date; Provided, further, That in the rules which the Pension Board may provide in connection with the insurance policies renewed annually for the greater guarantee and protection of the loans and of the borrowing teachers, respectively, said board shall provide that the payment of said renewed policies for the time covered by the loan shall be included as part of the debt and shall be deducted proportionally each month, together with the principal and interest.
History —May 12, 1942, No. 239, p. 1380, § 4.