FINANCIAL TRANSACTIONS Presently, lending operations and other financial transactions are executed between the contracting parties. Only when a financial institution is the lender and the nature of the transaction is retail banking the forms of these agreements are approved in advance by the authorities to comply with consumer protection regu- lations. Financial institutions are otherwise free to determine with the consumer the terms of these agree- ments such as the applicable interest rates, currency of payments, and other terms relating to any loan and its repayment. These loans can be regular loans, a line of credit, revolving or not, factoring or financial leas- ing operation, project financing, etc. The following are the most common types of securities used to guaran- tee repayment of loans in the country.
MORTGAGES In general, any type of real estate right can be mortgaged, be it land or even a registered right of use or exploitation of real estate. The construction or improvements of existent buildings on land are also con- sidered real estate and may be mortgaged. Mortgages over real estate properties that will be acquired or built in the future are not permitted, although, in practical terms, the security interests of a creditor with respect to a mortgaged property will extend to any buildings or improvements made on the property while a mortgage is in place. Because a mortgage security depends on the debt it guarantees, the validity of such debt is necessary for the mortgage to be valid. The secured obligation may, however, be conditioned or eventual, in which case the mortgage will also be conditioned or eventual. Likewise, a mortgage may be granted to ensure future obligations, which allow guaranteeing financial instruments such as lines of credit and credit cards. The mortgage debtor must have a duly registered title for the mortgage to be valid with respect to third par- ties. The persons with conditional property rights may grant mortgages under the same conditions affect- ing those rights. A mortgage must be executed in Spanish within Dominican territory and registered in the Title Registry Of- fice of the place that the property is located by means of the deposit of the security agreement and the Title Deed as well as other documentation relating to the payment of taxes and the identification of the parties in- volved. The date of the registry is the date of the deposit, although the physical issue of the Certificate of the Mortgage Creditor will be issued several weeks later.