P.R. Laws tit. 10, § 872
(a) The following securities may be registered by notification, whether or not they are also eligible for registration by coordination under § 873 of this title:
(1) Any security whose issuer and any predecessors have been in continuous operation for at least five (5) years if:
(A) There has been no default during the current fiscal year or within the three (3) preceding fiscal years in the payment of principal, interest, or dividends on any security of the issuer (or any predecessor) with a fixed maturity or a fixed interest or dividend provision, and
(B) the issuer and any predecessors during the past three (3) fiscal years have had average net earnings, determined in accordance with generally accepted accounting practices:
(i) Which are applicable to all securities without a fixed maturity or a fixed interest or dividend provision outstanding at the date the registration statement is filed and equal at least five percent (5%) of the amount of such outstanding securities (as measured by the maximum offering price or the market price on a day, selected by the registrant within thirty (30) days before the date of filing the registration statement, whichever is higher, or book value on a day, selected by the registrant, within ninety (90) days of the date of filing the registration statement to the extent that there is neither a readily determinable market price nor a cash offering price), or
(ii) which, if the issuer and any predecessors have not had any security of the type specified in subparagraph (i) outstanding for three (3) full fiscal years, equal at least five percent (5%) of the amount (as measured in subparagraph (i)) of all securities which will be outstanding if all the securities being offered or proposed to be offered (whether or not they are proposed to be registered or offered in Puerto Rico are issued);
(2) any security (other than a certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under such a title or lease) registered for non-issuer distribution if:
(A) Any security of the same class has ever been registered under this chapter or a predecessor act, or
(B) the security being registered was originally issued pursuant to an exemption under this chapter or a predecessor act.
(b) A registration statement under this section shall contain the following information and be accompanied by the following documents in addition to the information specified in § 875(c) of this title and the consent to service of process required by § 894(g) of this title:
(1) A statement demonstrating eligibility for registration by notification;
(2) with respect to the issuer and any significant subsidiary: its name, address, and form of organization; the state (or foreign jurisdiction) and the date of its organization; and the general character and location of its business;
(3) with respect to any person on whose behalf any part of the offering is to be made in a non-issuer distribution: his name and address; the amount of securities of the issuer held by him as of the date of the filing of the registration statement; and a statement of his reasons for making the offering;
(4) a description of the security being registered;
(5) the information and documents specified in clauses (8), (10), and (12) of § 874(b) of this title, and
(6) in the case of any registration under subsection (a)(2) of this section which does not also satisfy the conditions of subsection (a)(1) of this section, a balance sheet of the issuer as of a date within four (4) months prior to the filing of the registration statement, and a summary of earnings for each of the two (2) fiscal years preceding the date of the balance sheet and for any period between the close of the last fiscal year and the date of the balance sheet, or for the period of the issuer’s and any predecessors’ existence if less than two (2) years.
(c) If no stop order is in effect and no proceeding is pending under § 876 of this title, a registration statement under this section shall automatically become effective at four (4:00 p.m.) in the afternoon of the second (2nd) business day following the date of filing of the statement or the last amendment to the aforesaid, or at any other prior time as the Commissioner may determine.
History —June 18, 1963, No. 60, p. 128, § 302; Aug. 11, 1996, No. 114, § 9.