Dollar loans unenforceable?

TM3

New member
Nov 21, 2002
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0
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I'm about to make a loan to someone and it is my intention to denominate the loan in dollars and to use a Pagare Notarial that includes their house (and any other assets they might have or acquire in the future) as guarantee. I was planning to use an elaborate Pagare prepared by a lawyer that states that both parties agree that the loan is denominated in dollars, and must be repaid either in dollars, or in pesos at the market exchange rate that is prevalent on the day the debt is repaid.

Someone told me that such a Pagare is not enforceable, and that any Tribunal would reject it in case I have to seize the guarantee provided.

Someone else told me that the contract would be valid, but that if the debtor chooses to repay the debt in pesos, the exchange rate to be used would be the one prevalent on the day the loan was granted (and not the rate prevalent on the date the loan is repaid, even if this is explicitly stated in the Pagare).

What's the real deal here? What is the best way to make a dollar loan and to get repaid in dollars (or in pesos at the exchange rate prevalent on the date of repayment)? Any advice would be appreciated as I don't want to lose my money. I've been to several lawyers but they all say something different.
 

Escott

Gold
Jan 14, 2002
7,716
6
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www.escottinsosua.blogspot.com
I have done a mortgage based on dollars and payable only in dollars. I used an attorney in Sosua who does real estate only and he had assured me that it held water and charged me only 200- dollars to represent me.

He came highly recommended and I can supply his name via email if you request it.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,359
252
83
www.drlawyer.com
Loans in dollars (or euros, yens or any other currency) are now perfectly valid and enforceable, after the enactment of the new Monetary and Financial Code in November 2002.

Article 24 of the Code states that money debts will paid in the currency agreed upon by the parties.