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Parliament Act No. 14 Of 12 November 2001 On Business Within The Tourism Industry And Land-Based Businesses.

Original Language Title: Landstingslov nr. 14 af 12. november 2001 om erhvervsfremme inden for turismeerhvervet og landbaserede erhverv.

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Parliament Act no. 14 of 12 November 2001 on business within the tourism industry and land-based businesses. historically

Modified repeals, hovedlov replaces information

Repealed by
Parliament Act no. 20 of 3 December 2012 on business for land-based businesses


Amended by Act No. 10 of 14 November 2004 amending Rule Act on Trade and Industry in the tourism industry and land-based businesses (Dissolution of the Fund for loans for the establishment of accommodation facilities ( "Unnuisa Foundation"))


Chapter 1.

Purpose


§ 1. The purpose of the law is through the use of support measures to strengthen the development of Greenlandic business, including promoting regional economic development. To this end, improved and expanded the framework conditions for the provision of capital to establish companies for the construction, expansion and renovation of accommodation for tourists, for product development and ensuring implementation of succession.

Scope
§ 2. The Act includes activities in the tourism industry and the land-based industries.
Subsection. 2. In accordance with this law not be granted for purposes covered by the county regulation on support for fishing, hunting and agriculture.

Activities
§ 3. Within the appropriation of the annual budgets can to fulfill the statutory purpose of carrying out of activities, which includes
1) the provision of capital for starting a business,
2 ) helping to solve particularly extraordinary capital needs of the needy generational,
3) the provision of capital for implementation of projects related to speaking hotel facilities for tourists and
4) the provision of capital for product development.

Definitions
§ 4. For accommodation purposes of the Act a new structural device that fee can be used by tourists for a temporary stay in Greenland. Accommodation includes rooms designed for the hotel and the other facilities that are directly related to the hotel or has necessary correlation with the proposed development.

Chapter 2.
Guarantees
§ 5. The Cabinet can within the legal framework guarantee loans for the following activities:
1) the establishment of the company,
2) continuation of distressed generational see. § 6
3) product development and
4) the establishment, expansion and renovation of accommodation, see. § 7.
§ 6. guarantees for distressed succession is a condition | || 1) that there is a sudden financing due to external factors
2) that at the time the finansieringsbehovets sudden emergence already in the process of implementing a generational
3) the existence of a carefully prepared plan for the course of generational change and
4) that after a professional evaluation is a succession, from the viewpoint of economy happen assessments are profitable to implement.
§ 7. The Greenland government may guarantee loans for the following types of projects relating to accommodation:
1) the establishment of accommodation facilities in buildings that have hitherto been used for other purposes,
2) expansion of existing accommodation facilities in existing buildings,
3) the establishment of accommodation facilities in new buildings or
4) renovation of existing accommodation.
Subsection. 2. There must be evidence that the construction project is technically sound and long term economically viable, consistent with the tourism industry and other development helps to promote the tourism industry in those regions where there is an expected customer base.
§ 8. Warranty can be pledged as collateral for loans obtained in bank, savings bank, approved mortgage, the West Nordic Foundation or a combination of these. The guarantee must have the same maturity as the underlying loan.
Subsection. 2. The maximum guarantee is for 50% of the loan amount. The loan must be granted on market terms, with a maximum maturity of 10 years.
Subsection. 3. Guaranteed loans can be provided for individuals and businesses who have the right to exercise the profession in Greenland at the time the loan is paid.
Subsection. 4. It is a condition of the guarantee that the project for a professional economic assessment is profitable to implement.
Subsection. 5. By providing security is the Treasury's liability same proportion of the outstanding debt, as the guaranteed amount accounted for by the original loan amount.
§ 9. In case of default of the underlying loan is triggered the guarantee provided by request of the financial institution.

Subsection. 2. The Cabinet occurs by default in the claim against the debtor for the part guaranteed amount proportionate amounts of outstanding debt.

Chapter 3.
Particularly regarding accommodation facilities within the tourism industry
§ 10. The government has created a fund that aims to provide loans in the form of interest-bearing loans or a combination of interest rate and interest-only loans and interest-bearing loans for the establishment of accommodation facilities to tourists see. § 3, no. 3. name of fund and the statutes of the Greenland government, see. however paragraph. 4 and § 11. The Foundation's purpose with Cabinet's approval be amended in order that the fund should be able to prepare case preparatory materials associated with guarantees and possibilities and initiate new initiatives. The Cabinet must approve amendments to the Fund.
Subsection. 2. The Fund was founded with a capital of 15 million. kr., subscribed by cash payment. There can be inserted additional capital in the fund.
Subsection. 3. The Fund is supervised by the Greenland government to ensure that the Fund exercised in accordance with this county Law. The Cabinet can from the Fund require handed the information and documents necessary for the performance of supervision.
Subsection. 4. The Fund's financial statements of the calendar year. The financial statements are audited by one of The Cabinet appointed a chartered accountant.
Subsection. 5. In addition to in paragraph. 1 these purposes the Fund may use its funds to cover the necessary costs of the Fund.
Subsection. 6. The Fund may only lend if the applicant and the construction project fulfills the conditions laid down in § 7 without. § 4 and § 8 paragraph. 3-4 and in any rules issued by the law. The loans shall in addition meet the requirements of this chapter.
Subsection. 7. The Fund's Board will establish a secretariat and may enter into an agreement with a relevant company accordingly.
Subsection. 8. An employee of a financial institution holding the secretariat of the Fund under the Act, shall not participate in any part of the finance institute processing of applications classified under this Act.
Subsection. 9. The Fund dissolved by Greenland Parliament. Upon termination of the fund accruing to the fund's assets Lands fund, and the Greenland Home Rule will join the fund's rights and obligations.
§ 11. The Foundation is managed by a board consisting of five members, and their deputies. The chairman and the other board members appointed by the Government of Greenland for two years at a time, starting at the fund's inception. One board member and a deputy appointed by Greenland Tourism A / S, Greenland Tourism, and one board member and his alternate designated by the Greenland remaining banks jointly. One board member and a deputy appointed by the Greenland Employers' Association and the Federation of Employers for Trade, Services and Transportation industries in Greenland together. The membership of the Board of the Fund is not a civic duty.
§ 12 Fund loans can be provided through a combination of interest rate and interest-only loans and interest-bearing loans. The Fund's board decides the extent of the loan and sets other terms thereof, including the collection and payment of principal and interest on loans, see. However, § 13.
Subsection. 2. Fund loans can be granted only to those in § 7, paragraph. 1 projects mentioned and must comply with the requirements of § 7, paragraph. 2.
§ 13. Debt Financing from the Fund under this Act may not exceed 40% of the total investment for the activities outlined in § 7, paragraph. 1. The percentage depends on the profitability of each project and project opportunity for other funding. Of the aforementioned loan financing should be minimum 50% given as interest-bearing loans. Deposits and called for priority to be for all combinations of interest rate and interest-only loans, interest-bearing loans and loans established on the basis of guarantees from the Fund comply with the requirements under paragraph. 2-4.
Subsection. 2. The terms of the loans must be the same as for other loans, not exceeding 20 years. In the event that there are multiple borrowings, the longest maturity shall be applicable for loans taken under this Act, with a maximum maturity of 20 years. Interest-bearing loans repayable in equal installments of principal in each year, and debt-free loans written down with equal parts of the principal each year. In the event that there are no other loans, the loan has a term of 10 years and the interest rate and interest-only loans should be reduced by 10% of the principal of the end of each 12-month period starting from the date of payment.
Subsection. 3. The interest-bearing loans have an interest rate that follows the then-current bank rate plus any supplement set by the Board of the Fund to a maximum of 2% -points.

Subsection. 4. The Fund's loan must be secured by a mortgage in the accommodation facility receiving loans. The mortgage must have the best possible priority, but must respect other foreign financing up to 40% of the total investments mentioned in paragraphs. 1. The mortgage must not have oprykkende lien.
§ 14. If overnatningsfaciliteten in term of the loan is not used for the purpose for which is provided by lending or if the terms of the loan also breached, due but not impaired amounts immediately due and payable.
Subsection. 2. It is not written down amount is due also immediately payable if an overnight facility, which has received funding support, passes to a new owner. If the new owner and overnatningsfaciliteten continue to meet the conditions of this Act after the change of ownership, the Fund may accept that the new owner will join the previous owner's obligations to the Fund.
§ 15. Borrowers, whether it comes to people or companies be fully taxable in Greenland at the time the loan is paid.

Chapter 4.
Grants for product development
§ 16. The Cabinet may award grants for product development of products and services.
Subsection. 2. It is a condition that the manufacture of the product or performance of the service takes place in Greenland.
Subsection. 3. Beneficiary, whether it comes to people or companies be fully taxable in Greenland at the time the grant is paid.
§ 17. Grants may be awarded for up to one year. Already awarded grants do not exclude that there can apply for funding again.
Subsection. 2. Subsidies granted on application by an individual assessment of each project.
Subsection. 3. Payment of funding can be stopped
1) if the project is no longer considered feasible
2) if the recipient has provided incorrect or misleading information, or
3) if the beneficiary failed to disclose information relevant to the granting of grants.

Chapter 5.
Administration and supervision
§ 18. The Cabinet may establish procedures for the award of grants, guarantees and loans.
Subsection. 2. The Greenland government may enter into agreements with other public authority or a management company to conduct case preparation under the law.
Subsection. 3. The Cabinet - or the The Cabinet authorized by - can from people and companies that receive funds under this Act, require any information and records deemed necessary for administration, etc.
Subsection. 4. The Cabinet oversees the administration of the law.

Chapter 6.
Rules on case and complaint handling
§ 19 Act on case management in the public administration also applies in Chapter 3 above Fund and the activity carried out by a management company if the Greenland government is contracting with such on case preparation, see. § 18 paragraph. 2.
§ 20. Decisions of the Chapter 3 above Fund for loans may within 4 weeks from the date on which the decision is notified the applicant appealed to the Foundation Board, whose decision then is final.
Subsection. 2. Other decisions taken pursuant to this Act may, within four weeks from the date on which the decision is notified the applicant appealed to the Government of Greenland.

Chapter 7.
Sanctions Determination
§ 21. A person who submits false or misleading information or conceals information to obtain support under this Act may be fined. The fine shall accrue to the Treasury.
Subsection. 2. If the violation is committed by a company, which is run by the state, the Greenland Home Rule, a municipality or a municipal association, a limited liability company, cooperative, municipal association or similar fine may be imposed on the company as such.

Chapter 8.
Entry into force and transitional provisions
§ 22. This Act shall come into force on 1 January 2002. At the same time Parliament Act no. 15 of 31 October 1996 on financial aid for the tourism industry as well as Parliament Act no. 20 of 30 . October 1998 financing support for land-based businesses.
Subsection. 2. Notwithstanding paragraph. 1 remains decrees and regulations issued on the basis of Act no. 15 of 31 October 1996 on financial aid for the tourism industry or Parliament Act no. 20 of 30 October 1998 on financial aid for land-based business in force until repealed.
Subsection. 3. Loan commitments, guarantees or pledges of support given on the basis of Act no. 15 of 31 October 1996 on financial aid for the tourism industry or Parliament Act no. 20 of 30 October 1998 on financial aid for land-based business is still in effect.

Subsection. 4. The Cabinet authorized to offer the conversion of loans previously granted to a guarantee or a combination of guarantees and grants to entrepreneurs in the tourism industry granted under the previously applicable Act No. 15 of 31 October 1996.

Greenland Home Rule, 12 November 2001.

Jonathan Motzfeldt
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