DOMINICAN REPUBLIC Law and Practice Contributed by: Marielle Garrigó, Urania Paulino, Eduardo Pellerano and Ricardo Pellerano Nadal, Pellerano Nadal Law & Consulting
Additionally, certain assets, such as security interests in vehicles need to be registered before the Tax Administration. Regarding shares, these must be notified to the corresponding Chamber of Commerce to make the proper annotations in the Mercantile Registry and must be registered in the company’s stock ledger. Lastly, security interest over intellectual property and/or material contracts must be notified via a Security interest over real estate is perfected with the registration of the mortgage agreement before the deeds registry ( Registro de Titulos ) corresponding to the domicile where the real estate property is located. Real estate can have multiple security interests; priority will be deter- mined by the order of registration or through an assignment of ranking ( cesión de rango ). In order to record a mortgage, several docu- ments need to be filed at the corresponding deeds registry, among which are: • the mortgage agreement; • an original of the certificate of title of the property; • certification that the property taxes are update; • a copy of the identity card or passport of the parties or tax ID if a legal entity; and • a mortgage tax receipt. Please note that to register a mortgage in favour of a foreign lender, the lender should obtain a local tax number. bailiff’s act to all parties. Real Estate Mortgages
Like for the registration of movable assets, the registration process is completed on the same day as its deposit in the corresponding deeds registry, however, the Dominican authorities take several weeks to issue the lender title deed with the corresponding security. All these securities last until the debtor pays the credit or the creditor orders the removal of the inscription. An expiration date for a pledge can be renewed. 5.4 Restrictions on Upstream Security There are generally no restrictions on the pro- vision of security by a subsidiary to guarantee liabilities from its parent company or beneficial owners, except for any restrictions that may be included in the bylaws/corporate documents of the corresponding companies. In the case of granting upstream security, there would gen- erally be a corporate resolution approving the granting of the corresponding security. It is important to mention that Transfer Pricing Rules are regulated by Rule No 78-14 ( Regla- mento sobre Precios de Transferencias ), as amended; this is one of the rules of the Tax Code There are no rules prohibiting financial assis- tance in the context of acquisition finance Dominican Republic. 5.6 Other Restrictions See 5.4 Restrictions on Upstream Security . 5.7 General Principles of Enforcement The general principles applicable in the Domini- can Republic to foreclosure of security apply to both movable assets and real estate, and are of the Dominican Republic. 5.5 Financial Assistance
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