Security of the pagaré notarial

  1. The purchase of a property from the Samana Group’s range or an investment through our investment instruments, is secured on the assets of the company through a pagaré notarial .
  2. A pagaré notarial  is an official act that has the force of law under article 545 of the Code of Civil Procedure of the Dominican Republic.
  3. The pagaré notarial is the Dominican equivalent  of a notarial deed in which the debtor submits to the execution of all his assets without the need for judicial proceedings.
  4. This is how the pagaré notarial procedure works 
    1. The document is drawn up before a notary public and in the presence of two independent witnesses who attest to the obligations agreed between the parties to the contract.
    2. The document is registered in the civil registry of the municipality and in the notarial deed.
    3. In addition, the notary issues a notarial certificate confirming that the notarial promissory note exists in the files under his responsibility.
    4. If the debtor defaults, an execution order is issued with the notarial certification at the head of the deed.
    5. Once the deadline for payment of the obligation has passed, the enforcement department of the public prosecutor’s office can be called upon, in particular, to enforce the debt.
    6. Such an obligation can also be enforced against bank accounts or money owed to the debtor by third parties.
  5. Advantages of the pagaré notarial
    1. The pagaré notarial provides creditors with a security interest in the debtor’s assets, making it a solution that offers solid security for commercial transactions. All transactions with the Samana Group are secured by the company’s assets, including land owned by the Samana Group with an appraised value of US$10 million.
    2. As the  pagaré notarial  is an official document, it does not require a court judgment to enforce the debt.
    3. This means that a creditor can directly request assistance from various types of public authorities, including law enforcement, to enforce its claim, without the need to initiate court proceedings.
    4. By having the power to enforce a judgment, a  pagaré notarial significantly reduces the time it takes to enforce a debt compared to a mortgage or obtaining a court judgment.
    5. In practice, this means that the chances of enforcing debts in the Dominican Republic are greater than in countries, where enforcement of debts is handled solely by a bailiff.
  6. Legal basis: Article 545 of the Dominican Code of Civil Procedure, concerning the notarial promissory note.
    1. The first copies of judgments and other judicial decisions and those of notarial acts containing the obligation to pay amounts of money, either periodically or at fixed times, as well as the second or subsequent copies of the same judgments and acts that are issued in accordance with the law in substitution of the first one, are enforceable.
    2. Paragraph: Without prejudice to the other powers conferred upon them by law, it is the general obligation of the representatives of the public prosecutor’s office, bailiffs and officials entrusted with the deposit of public force to provide their assistance for the execution of the judgments and acts that, pursuant to this Article, are vested with enforceable force, whenever they are legally required to do so.
  7. A pagaré notarial is the most solid security instrument that a client buying a property in the Dominican Republic can receive.
  8. According to an independent law firm, a pagaré notarial is a very strong guarantee for the creditor, much stronger than a typical mortgage-backed security.

We are at your disposal for any questions you may have.

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