CHAPTER I ORGANIZATION, PURPOSE AND CAPITAL
Art.1.- Creation of the PROMOTION OF HOTEL INDUSTRY AND DEVELOPMENT OF TOURISM CORPORATION, autonomous entity with legal personality and own patrimony, with all the inherent attributes of such quality, which will be based in the city of Santo Domingo de Guzman, National District, Capital of the Dominican Republic. It will be called hereafter in the text of this law CORPORATION.
Art.2.- This corporation is primarily intended to coordinate national activity for the development of hotel business and tourism promotion in the Dominican Republic, promoting the acquisition, construction, financing, development and conservation of hotel and tourism companies in general.
Art.3.- The authorized capital of the Corporation shall be RD$ 20,000.000.00 (TWENTY MILLION PESOS). The paid-up capital of the Corporation shall consist of cash, securities and assets that the Dominican State contributes under the terms and conditions of this law and in cash or property, movable and immovable, that it obtained by other contributions or performing asset and capitalization of earnings.
The Corporation shall have a reserve account and maintain a separate fund of non-self-liquidating operations.
CHAPTER II SECTION I BOARD OF DIRECTORS
Art.4.- The Board of Directors of the Corporation shall be composed as follows:
1. The National Director of Tourism, as Chairman of the Board of Directors and the Corporation;
2. The General Manager of the Corporation, who shall be appointed by the Executive Branch;
3. The Technical Secretary of the Presidency;
4. The President of the Industrial Development Corporation;
5. The Chairman of the National Development Commission;
6. The Director of the National Planning Board;
7. Three (3) members appointed by the Executive with their respective alternates.
Paragraph Ex-officio members will alternate as legal replacements.
Art.5.- The functions of the members of the Board of Directors will be honorary.
Art.6.- The Board of Directors shall meet in regular session at least once a month, convened by its President, and extraordinarily when the Chairman deems necessary or at the request of the General Manager or two (2) members of the Board of Directors.
Art.7.- Quorum was formed with the assistance of six (6) members of the Board, assuming that one of them is the Chairman or his substitute. Decisions shall be taken by majority vote. In case of a tie, the President’s vote will decide. All meetings shall include an act that is to be signed by all the members present or represented.
Art.8.- The following powers correspond to the Board of Directors:
1. Vote or modify the regulations of the Corporation and subject to approval by the Executive.
2. Designate and put up office officials and department heads, Auditor and other employees of the Corporation, and grant them the necessary powers and representations.
3. Dictate the rules governing credit operations to be followed by the Corporation and set each and every of the activities that have preference for the purposes of the Corporation and determine the limits and conditions of assignments, deadlines, fees amortization; interest rate and corresponding discounts. It is the duty of the board to know, approve or reject all transactions undertaken by the Corporation.
4. Determine accounting methods that will be used in the company.
5. To approve the monthly statement.
6. To approve annually the Annual Report, the balance sheet and profit and loss account, within sixty (60) return after the end of the fiscal year. The fiscal year coincides with the calendar year.
7. To submit to the Executive Branch the Annual Report, along with the Balance Sheet and the Profit and Loss. 8. Have the audit and inspection of the Corporation at least once a year.
9. Hire the provision of technical services functional representation or with international bodies forming part the Dominican Republic or any institution, organization, company or person of recognized moral or economic solvency.
10. Resolve any other matter relating to their duties or the interests of the Corporation that manages and administers, provided that these are not the exclusive competence of the President of the Corporation and in other cases, provided that the issues to consider have not been previously assigned to committees or executive officers by the same Board of Directors.
SECOND SECTION THE PRESIDENT Art.9.- The President of the Corporation will be the National Director of Tourism, and will, without this list being limiting, the following powers and duties:
1. Chairing the Board of Directors of the Corporation.
2. To place the recommendation of the Executive for the appointment of the General Manager.
3. Submit to the consideration and approval of the Board of Directors all suggestions of place and present projects whose execution deems necessary and the marking of operations and activities that meet the goals, development and growth of the Corporation.
Art.10.- In case of temporary incapacity of the President will be replaced by the Deputy of the National Director of Tourism.
THIRD SECTION CHIEF EXECUTIVE Art.11.- The General Manager will have the legal representation of the Corporation and will be responsible for all administrative matters. Also, ensure the faithful execution of the business and operations of it, with full power to act in the exercise of such representation, hire and ensure compliance with existing obligations in favor of the Corporation.
Art.12.- The General Manager shall be appointed by the Executive Branch and must be a citizen of recognized ability and enjoying strong moral reputation. Art.13.- If case of impossibility or temporary absence of the General Manager, he or she will be replaced by the officer of the Corporation’s Board of Directors appointed with the approval of the Executive.
SECTION FOUR SECRETARY Art.14.- The Board of Directors shall appoint a Secretary.
This person will be responsible for the Book of Minutes of the Sessions and custody of the seal of the Corporation. Drafted and signed, with the approval of the President, all certifications that may be called and should be issued by the Corporation. Also, exercise such other functions of his office and delegated to it by the Chairman of the Board.
CHAPTER III OPERATIONS Art.15.- The functions of the Corporation shall be as follows:
1. Encourage in all areas the hotel and tourism business in the country. For that purpose, may grant loans with sufficient collateral directly or by appealing to banks or public or private entities. These loans may only be applied to operations that contribute to the hotel promotion and tourism development. They may include the acquisition of all kinds of movable or immovable property, debt refinancing, working capital and any other appropriate or necessary use for the purposes of this promotion.
The Corporation may issue securities guaranteed and discountable. The Corporation also has power to recommend to the Executive Branch concessions are directed to achieving their goals.
2. To cooperate in all aspects of the creation, installation and operation of new hotel companies, being able to participate in them with capital contribution, credit or both, and exercise or not the control and management of them.
3. To acquire the assets of hotel companies and even the same companies, as long as these operations are for the benefit of the hotel company. It may dispose of them by transferring all or part of their shares or assets or operations of sale, lease or free placement.
4. Make loans or credits to expand reconstruction and operation of hotels already established.
5. Lease or buy property intended or to be made for the expansion or installation of the hotel company. It can also purchase in any way you see fit, equipment, machinery, tools, duties and other assets related and contribute to the development of these companies. In addition, it may rent, sell or transfer them to individuals or private companies.
6. Get any loans or advances in the manner determined by the Board of Directors.
7. To receive donations or contributions that do not involve charges, unless the same are offset by the amount of the donation.
8. Establish, manage, maintain or sponsor services that are aimed at the promotion, study and dissemination of issues related to the hotel business and tourism development. It may also finance or assist in the creation of establishments or schools for learning, training and technical studies of hotel staff and related companies.
9. Create special funds to be allocated to scholarships, both at home and abroad for the purpose of training and all necessary for the better development of the country’s human resources.
10. Manage obtaining of grants from other entities, national or foreign, for the same purposes.
11. Any other operations consistent with its nature and purpose, as long as the Board of Directors authorizes them. Art.16.- In granting loans, the Corporation shall comply with the following rules:
1. The loan shall be exclusively for the hotel company boost or promote tourism development.
2. The period does not exceed one year, the loan must be verified by public deed or under private signature, in exchange for a commercial promissory letter.
3. When the period is longer than one year, the loan should have sufficient collateral. This warranty will pledge character, with or without relinquishing possession, but the Board of Directors considering the consistency of the loan, may require real estate collateral in substitution or in addition to the garment. The amount of the loan may not exceed forty percent (40%) of the collateral.
4. The Corporation may lend to a period not exceeding twenty (20) years. When there are exceptional conditions of advantages for the hotel building, in the opinion of the Board of Directors, it may dispense with this limit, but in no event exceed the term of thirty (30) years.
Art.17.- No person, natural or juridical, may obtain loans from the Corporation in sums over ten percent (10%) of the paid capital and reserves of the Corporation.
Art.18.- Not to be admitted in loan guarantees: 1. Property in undivided state or whose property this dismembered in favor of several people. Unless those who have rights in the property to be mortgaged acquiesce in their assessment.
2. Those already taxed, unless the Corporation has preference for collection by subrogation or consent of other creditors.
3. The assets whose ownership is in dispute.
4. The goods subject to repurchase or whose property is subject to a condition.
5. Usufruct property, except concurrence of the owner and the benefit to the constitution of the guarantee. 6. The goods seized.
7. The assets owned by the state or the municipalities. Art.19.- The Corporation has the right, by virtue of this law, to give up the loan and demand immediate payment of their claims in any of the following cases:
1. If the Corporation finds that the information provided by the debtor when applying for credit is false or conceals the truth of the facts.
2. If the debtor is allowed to precede over fifteen (15) returns without notice to the Corporation of the damage suffered by collateral or other susceptible fact reduces its value, to disrupt the possession or compromise their property.
3. If the debtor has concealed any cause for termination or termination of their property rights or any hidden on the collateral, to the detriment of the rights of the Corporation tax.
4. If the debtor does not satisfy the due payment of principal and interest stipulated in the loan agreement. 5. If the debtor opposes to the inspection of the collateral or refuses to provide reports to asked by the Corporation, in connection therewith.
6. If the debtor, without the prior consent of the Corporation, disposed of the collateral, in whole or in part, or is mortgage, usufruct, antichresis, easements, leases and other rights to third parties.
7. If the collateral have perished or experienced deterioration in such a way that have become insufficient to guarantee the Corporation. These circumstances shall be determined by experts appointed by the Corporation and its report will be duly notified to the debtor so that this constitutes a supplement or a new mortgage guarantee to the satisfaction of the Corporation.
8. If the debtor destined all or part of the amount received for purposes other than those specified in the contract, or distract amount to another object.
9. If it becomes enforceable and had not paid any other obligation that the debtor had with the Corporation.
Art.20.- For the control and management of the Corporation, the Board of Directors may rationally divide the activities of the company departments.
Art.21.- The Corporation may import free of customs duties, taxes, consular fees and any charge or fee, the tools, materials, equipment, machinery necessary for their service and purpose.
Art.22.- the Corporation shall enjoy postal and telegraphic franchise.
CHAPTER IV AUDITOR Art.23.- The Corporation shall have an Auditor, who is Head of the Department of Accounting and is responsible for the verification and the internal audit. It continuously examines the operations of the Corporation, reporting to the President and to the Board of Directors, the results of its work at least once a month. It must countersign all economic reports to be made, published or filed by the Corporation, including its balance sheets and annual reports.
GENERAL DISPOSITION Art.24.- Performing loans of the Corporation shall be subject to the same legal regime established for granted by the Agricultural Bank of the Dominican Republic.
Art.25.- (TEMPORARY). In order to integrate the capital of the Corporation, the state will provide free of charge, hotel companies, goods, interest contracts and actions that are or may be owned by the state and that the Corporation will claim to be useful to its object.
Art.26.- (TRANSITORY). The contributions and transfers to the above provision contracts will be made by the actual values of the assets transferred or transferred prior release of liens on them and sanitation and setting values in the books. If necessary, the State would compensate credits public institutions such assets and ordered the payment of enforceable legitimate debts by issuing domestic government securities in perpetuity, without interest, in the amount necessary for this purpose and sanitation and adjustment of assets corresponding.
Art.27.- Corporation delivers the Dominican State fifty percent (50%) of its profits, at the close of each fiscal year, which will come as specialized funds for tourism development.
Art.28.- Law 44, dated November 9, 1965, and any other laws or parts of laws contrary to this are repealed. GIVEN in the Hall of Sessions of the Senate, National Congress, in Santo Domingo, National District. Capital of the Dominican Republic, on the twenty-second of December of 1969, 126 years of Independence and 107 of the Restoration.
Adriano A. Uribe Silva President
Yolanda Perez A.Pimentel Secretary
Marcos A. Jaquez F. Secretary
GIVEN in the Hall of Sessions of the Senate, National Congress, in Santo Domingo de Guzman, National District, Capital of the Dominican Republic, on the twenty ninth day of December of 1969; 126 years of Independence and 107 of the Restoration.
Patricio Lara G. Badia President
Bienvenido Pimentel Piña Secretary
Manuel Pavon Rincón Secretary Ad-hoc
President of the Dominican Republic
In exercise of the powers conferred upon me by Article 55 of the Constitution of the Republic.
ENACT this Law, and order that it be published in the Official Gazette, for information and compliance.
GIVEN in Santo Domingo de Guzman, National District, Capital of the Dominican Republic, on the thirty- first days of December of 1969, 126 years of Independence and 107 of the Restoration.