Banks that do Collateral Loans

Guaranteed credit banks

Financing and collateralised loans in the Dominican Republic In recent years, several new laws have been passed that have had a positive effect on the dominant credit markets. A new Bankruptcy and Reorganisation Act has recently been adopted, which will also ease the evolution of the dominant credit markets by providing a cleaner, fairer way for troubled businesses and giving creditors more trust in the commercial viability of domestic businesses and the wider economies.

One of the most important implications that this new law will have on day-to-day credit is that it sets out evidence of the disclosure of cashless payments. To register a mortgag at the Registrar above this limit, creditors must now prove to the Registrar that the repayment of the credit to the Mortgagor has been cashless, otherwise the submission and entry of the mortgag will be completely refused.

Lastly, a law on movable assets, currently before Congress, would standardize the procedure for creating transferable assets across all types of movable assets; offer better accessibility to finance and allow alternatives to traditional court-administered execution procedures for enforcing collateral. Thus, the dominant credit markets benefit from a more clear and flexible regulatory environment that should further increase the involvement of non-domestic lenders.

Guaranteed loans are not regular business in the Dominican Republic. Every natural or juridical person can carry out such actions in compliance with the relevant statutory regulations, which differ according to security. Thus, for example, a traditional mortgages on properties are subject to the general regulations of the Civil Code (§§ 2114 ff.) and the Land Register Act (108-05).

However, various kinds of liens on movable goods (e.g. cars, vessels, aircraft, machines, equipments, inventory, current and prospective farming cultures, goods) may be created under national law: Civilian mortgages are subject to the German Code of Civil Law; customary mortgages are subject to the German Code of Commerce; furniture mortgages - usually to protect cars, machines, inventory and other movable goods - are subject to Law 6186; all collateral arrangements for planes and vessels are regulated by the National Institute of Civil Aviation, the Mercantile Marine Agency or the Naval Office;

Pledging of IPRs (e.g. patent, design, trademark, trading name) is subject to Act 20-00; pledging of FI s and S ( e.g. banking account, investment, certificates issued as deposits, stocks, loans, securities proceeds ) is subject to Currency and Finance Code, Stock Exchange Act and similar regulations.

Insofar as the Mortgagor is active in a regulatory sector (e.g. banks, insurances, free areas, telecommunication, transport, energy), specific legislation of this sector applies to the credit business as long as the collateral is within the framework of the regulatory work. Lenders should also obtain advice in the Dominican Republic, as any kind of collateral requires rigorous compliance with stringent procedures at the domestic level in order to efficiently enroll the securities and secure the collateral from third party investors.

In order to be able to register for example a hypothec in the Dominican Republic, the non-resident creditor must have a fiscal identity in the Dominican Republic. Which are the current suppliers of secure financing in your jurisdictions (e.g. global banks, domestic banks or non-banks)? Global and domestic business banks, Sparkassen and Kreditverbände, Sparkasse and Kreditvereinigungen as well as Kreditgesellschaften are the default investor in financing loans to banks.

After all, multi-lateral finance institutes have been active for many years in securing finance in the Dominican Republic, mostly for large infrastructural ventures. Procedures for the enrolment of transferable Securities differ according to the nature of the Transferable Securities. 1. Indeed, funding through revolving lines of syndication is very widespread in the Dominican Republic.

His duties include: collecting payment, distributing payment to other bondholders, supervising regulatory oversight, collateral agent, pursuing litigation. In your jurisdictions, does the Act allow collateral and warranties to be fiduciarily retained by a collateral fiduciary for the account of the bank consortium? As a rule, would collateral be provided for the SPV units or would a lender demand immediate collateral?

It depends on the nature of the transactions. We also recommend it for those who have a credit in the Democratic Republic, since after January 2017 all mortgagors must have a fiscal identity in the Democratic Republic. According to dominant legislation, the contracting partners can decide for themselves on the interest rates to be applied (e.g. percentages, fix, variable).

Is there a regulator's limit on the interest rates that can be applied to credit from banks? The interest rates that can be applied to loans from banks are not subject to any limitations. Participants in a credit contract are free to negotiate the interest rates. Absolutely - Usually Domino banks require at least a guaranty or a co-signatory for a credit, sometimes more.

That means that when requesting a credit, the debtor has to prove collateral or has at least one or more co-signatories. Techniques for creating and perfecting a warranty vary according to the type of collateral. Thus, for example, a traditional mortgages on immovable properties is subject to the general rules of the Civil Code (Articles 2114 et seq.) and the Land Registry Entry Act (108-05), which is also available under the specific rules of Law 189-11.

However, various kinds of liens on movable goods (e.g. cars, vessels, aircraft, machines, equipments, inventory, current and prospective farming cultures, goods) may be created under national law: Civilian mortgages are subject to the German Code of Civil Law; customary mortgages are subject to the German Code of Commerce; furniture mortgages - usually to protect cars, machines, inventory and other movable goods - are subject to Law 6186; all collateral arrangements for planes and vessels are regulated by the National Institute of Civil Aviation, the Mercantile Marine Agency or the Naval Office;

Pledging of IPRs (e.g. patent, design, trademark, trading name) is subject to Act 20-00; pledging of FI s and S ( e.g. banking account, investment, certificates issued as deposits, stocks, loans, securities proceeds ) is subject to Currency and Finance Code, Stock Exchange Act and similar regulations.

Guarantee creation and enforcement processes vary according to the nature of the collateral. According to the new Insolvency and Reorganization Act, if insolvency proceeds are opened, the executability of collateral and enforcement measures could be deferred. Outline the most commonly used ways to structure the priorities of debt and collateral.

Typical ways of giving preference to debt and collateral are pledges or mortgage and collateral arrangement (e.g. equities, finance products, movable property, claims and contract rights). Techniques for determining prioritisation and terms for improving collateral vary according to the type of collateral.

Concerning revolving credit facilities, lender arrangements may determine the conditions and particulars of priority and submission. Is there any tax, stamping tax or other charge to be paid when a credit, surety or interest is granted or enforced? Perfecting securities or collateral is associated with charges that differ according to the nature of the securities.

Example: Mortgages pfandbriefe are taxed at 2% on the amount hedged; share pfandbriefe are required to pay minimal registry charges at the Commercial Registry; movable pfandbriefe are required to pay minimal registry charges at the relevant Friedensgericht (the lower courts legally known as the registrars of such securities); IP pfandbriefe are required to pay minimal registry charges at the Dominican Intellectual Property Office; bank transfer payments are required to be made at 0.15% of the value of the amount conveyed.

There may be extra cost for the enrolment of liens in the regulated sector. As a rule, cross-border credit operations are conducted under New York jurisdiction, although the registry of collateral is required by the domestic legislation of the place where the collateral is held, in this case dominant legislation governing the particular securities concerned.

Is there any restriction on lending by or the provision of collateral or guarantee to non-resident creditors? Negative. Securities domiciled in the Dominican Republic are generally governed by domestic laws, but the applicable laws under the new International Civil Code (544-14) are freely chosen by the contracting states.

Is there any control on exchanges that restricts payment to a non-resident creditor under a securities instrument, bond or contract of accommodation? In the Dominican Republic, the Euro and the US Dollar are regarded as free convertable Euro and US Dollar and there are no limitations on the use of a FX as long as the respective contract explicitly states the denomination of the respective Euro or US Dollar.

It is possible to establish a lien over all of a company's financial instruments? Assuming so, would a lump-sum collateral arrangement be sufficient or is a lump-sum collateral arrangement necessary for each kind of financial instrument? Lump-sum mortgages or mortgages in which a securities is entered against all the borrower's property are not permitted in the Dominican Republic.

Loans, pledges, financial instrument, movable asset, claims and contract right etc. need different stages to be perfect. How do you formalise the provision of collateral for the most popular types of investment? Procedures vary depending on the nature of the collateral. In order to obtain the approval of a mortage, for example, the following documents are required: the exemption arrangement; party identity; a statement of the good name of the dominant fiscal authority; the owner's deed of ownership; the statement of the initial lender; the statement of deposit and stamping payments.

The following documents are necessary for the approval of a mortgage on furniture: the initial deed of lien, a whole or part lien contract; a formality application filed with the Tribunal for the Establishment of the Peace (the lower tribunal referred to by statute as the keeper of these securities). Under certain terms and certain terms set out in the loan contract, the contracting partners are free to arrange upon certain terms for a partially released collateral.

As a rule, in the case of loans from banks, no collateral is released by banks until the capital has been disbursed. The fact that almost all state authorities need a clearance certificate as part of their paperwork reinforces this. Is it possible to provide collateral for property? And if so, what are the most commonly used securities for property and what is the process?

Immovable properties become due to the conclusion of a contract of hypothecation between the proprietor of the immovable or his agent and the lender. However, the loan contract on which the loan is based may be governed by international laws and may be carried out abroad.

Supremacy and assertion of third party privileges is enhanced by the submission of the relevant documents to the administrator of the registry where the real estate is situated. When the first lender submits his collateral, he receives first-ranking collateral through the issue of a creditor's instrument of incorporation, which allows the lender to recover his indebtedness by foreclosing the collateral from all other subordinated recorded cedants.

Documents needed are: the mortgages contract certified by a Dominican Civil Law Attorney based in the place where the real estate is situated (including proof of the power of attorney of the signatories) (the Civil Law Attorney must also have a document certifying the real estate grant by the Land Registry Officer in accordance with the new Civil Law Attorney Act); the ownership deed of the proprietor; the document certifying that the proprietor is up to date with the relevant real estate duty or capital duty payments; the creditor's fiscal ID (registered for this purpose); the arrival of the 2% mortgages remittance payments; the creditor's fiscal ID (registered for this purpose); the arrival of the 2% mortgages remittance payments.

Is it possible to guarantee safety for machines and plants? And if so, what are the most commonly used types of collateral for this type of ownership and what is the process? According to national law, various mortgages of movable goods can be made. In order, for example, for a civilian lien to take effect, the defendant must transfer ownership of the estate to the lender or a named third person.

Such pledging allows the borrower to retain ownership of the assets while the securities exist. If this is the case, the pawn contract must be subject to regional legislation, even if the finance contract itself may be subject to international legislation. Civilian liens, on the other have to be entered in the registry office.

As regards cars, a creditor can lodge a petition for assignment with the Ministry of Transport and the Tax Office in order to further safeguard the deposit and make it valid against third party claims. Concerning aeroplanes, safety contracts must be drawn up before a civil law clerk and submitted to the Civil Registry Office and the National Institute of Civil Aviation.

The safety of vessels must be recorded with the Mercantile Marine Agency and the Navy. Documents required: the contract of lien, properly concluded and authenticated; the originals of the title deeds for aircrafts, vessels and rolling stock; otherwise a sufficient document is a listing of the property covered by the lien.

Is it possible to provide collateral for claims? And if so, what are the most commonly used types of collateral for this type of ownership and what is the process? Collateral for the claims is provided by concluding a pawn contract, notifying the relevant debtor and registering with the civil registry office. In order to ensure enforcement against third party, the pawn contract must be reported by a judicial officer acting as judicial officer and must be recorded as described above.

Is it possible to provide collateral for financing documents? And if so, what are the most commonly used types of collateral for this type of ownership and what is the process? Miscellaneous pledged assets of various types of interest can be pledged under domestic law. A lien on for example derivative contracts must be settled by a deed of notary between the contracting partners and properly communicated to the institution in which the contract is located.

As regards the confirmation of custody and assurance certifications, the arrangement must be communicated to the issuer for definitive authorisation (if required) and official register. Following documents are required: the pawn contract, properly certified; the proof of your initial health cover. Is it possible to provide collateral in the form of liquid assets?

And if so, what are the most commonly used types of collateral for this type of ownership and what is the process? 91 HGB allows creditors to collateralise business with liquid assets. There is a need for a special collateral and pledging arrangement to be concluded between the contracting partners; this type of arrangement is usually known as a "fiduciary assignment" and involves the assignment of the loan to the beneficiary in the event of certain occurrences, such as non-performance or non-performance.

Notification of this arrangement shall be given to the deposit holding entity. Contracts must also be recorded by the creditor. Is it possible to provide certainty about IP? And if so, what are the most commonly used types of collateral for this type of ownership and what is the process?

Intellectual property is secured by the conclusion of a pawn contract and its enrolment at the National Office of Intellectual Property. Which are the joint enforceability triggers for loans, warranties and collateralisation? Negotiations are held between the creditor and the debtor on defaults that cause the collateral to be enforced. Borrowers must relinquish their right during the life of the credit so that the creditor can assert the collateral in law; such relinquishments can be found in almost all trade agreements.

If enforcement is the appropriate course of actions, the stages differ according to the nature of the collateral, but all include: notification of the borrower by a bailiff's file (a file provided by a bailiff) alerting of the presence of a case of delay; selling the property at a competitive tender; in the absence of third parties, the lender receives the entire value of the property in full as repayment of the liability.

All of these procedures are performed in the national currencies of the Dominican Republic. Underwriting of secured property, which allows a lender to take a controlling interest in it without going through a procedure, is forbidden under dominant legislation. Act 189-11 introduced an expedited enforcement procedure for mortgage loans provided to cover a credit extended by a banka.

According to Articles 86 of Bankruptcy Law 141-15, debt must be paid in the following order: employment obligations if they have not been submitted in accordance with the Labor code regulations or other legislation on workers' welfare or wellbeing. Loans authorised by the courts and provided by intermediaries or third persons to finance the borrower.

Debt arising from the performance of agreements which shall continue to be in effect after the start of the reorganization procedure if they are authorized by the courts and the corresponding lender consents to deferral.

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