USVI Public Records

This chapter may be cited as the "Uniform Electronic Transactions Act". History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 144.

In this chapter: (1) "Agreement" means the bargain of the parties in fact, as found in their language or inferred from other circumstances and from rules, regulations, and procedures given the effect of agreements under laws otherwise applicable to a particular transaction. (2) "Automated transaction" means a transaction conducted or performed, in whole or in part, by electronic means or electronic records, in which the acts or records of one or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract, or fulfilling an obligation required by the transaction. (3) "Computer program" means a set of statements or instructions to be used directly or indirectly in an information processing system in order to bring about a certain result. (4) "Contract" means the total legal obligation resulting from the parties' agreement as affected by this chapter and other applicable law. (5) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. (6) "Electronic agent" means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual. (7) "Electronic record" means a record created, generated, sent, communicated, received, or stored by electronic means. (8) "Electronic signature" means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. (9) "Governmental agency" means an executive, legislative, or judicial agency, department, board, commission, authority, institution, or instrumentality of the federal government or of a State or of a county, municipality, or other political subdivision of a State. (10) "Information" means data, text, images, sounds, codes, computer programs, software, databases, or the like. (11) "Information processing system" means an electronic system for creating, generating, sending, receiving, storing, displaying, or processing information. (12) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency, public corporation, or any other legal or commercial entity. (13) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (14) "Security procedure" means a procedure employed for the purpose of verifying that an electronic signature, record, or performance is that of a specific person or for detecting changes or errors in the information in an electronic record. The term includes a procedure that requires the use of algorithms or other codes, identifying words or numbers, encryption, or callback or other acknowledgment procedures. (15) "State" means a State of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band, or Alaskan native village, which is recognized by federal law or formally acknowledged by a State. (16) "Transaction" means an action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 145.

(a) Except as otherwise provided in subsection (b), this chapter applies to electronic records and electronic signatures relating to a transaction. (b) This chapter does not apply to a transaction to the extent it is governed by: (1) a law governing the creation and execution of wills, codicils, or testamentary trusts; (2) title 11Atitle 11A, Virgin Islands Code than sections 1- 107 and 1-206, 2, and 2A; (3) the Uniform Computer Information Transactions Act. (c) This chapter applies to an electronic record or electronic signature otherwise excluded from the application of this chapter under subsection (b) to the extent it is governed by a law other than those specified in subsection (b). (d) A transaction subject to this chapter is also subject to other applicable substantive law. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 147.

This chapter applies to any electronic record or electronic signature created, generated, sent, communicated, received, or stored on or after the effective date of this chapter. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 147.

Agreement (a) This chapter does not require a record or signature to be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form. (b) This chapter applies only to transactions between parties each of which has agreed to conduct transactions by electronic means. Whether the parties agree to conduct a transaction by electronic means is determined from the context and surrounding circumstances, including the parties' conduct. (c) A party that agrees to conduct a transaction by electronic means may refuse to conduct other transactions by electronic means. The right granted by this subsection may not be waived by agreement. (d) Except as otherwise provided in this chapter, the effect of any of its provisions may be varied by agreement. The presence in certain provisions of this chapter of the words "unless otherwise agreed", or words of similar import, does not imply that the effect of other provisions may not be varied by agreement. (e) Whether an electronic record or electronic signature has legal consequences is determined by this chapter and other applicable law. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 147.

This chapter must be construed and applied: (1) to facilitate electronic transactions consistent with other applicable law; (2) to be consistent with reasonable practices concerning electronic transactions and with the continued expansion of those practices; and (3) to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among States enacting it. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 148.

and Electronic Contracts (a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form. (b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation. (c) If a law requires a record to be in writing, an electronic record satisfies the law. (d) If a law requires a signature, an electronic signature satisfies the law. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 148.

(a) If parties have agreed to conduct a transaction by electronic means and a law requires a person to provide, send, or deliver information in writing to another person, the requirement is satisfied if the information is provided, sent, or delivered, as the case may be, in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record. (b) If a law other than this chapter requires a record (i) to be posted or displayed in a certain manner, (ii) to be sent, communicated, or transmitted by a specified method, or (iii) to contain information that is formatted in a certain manner, the following rules apply: (1) The record must be posted or displayed in the manner specified in the other law. (2) Except as otherwise provided in subsection (d)(2), the record must be sent, communicated, or transmitted by the method specified in the other law. (3) The record must contain the information formatted in the manner specified in the other law. (c) If a sender inhibits the ability of a recipient to store or print an electronic record, the electronic record is not enforceable against the recipient. (d) The requirements of this section may not be varied by agreement, but: (1) to the extent a law other than this chapter requires information to be provided, sent, or delivered in writing but permits that requirement to be varied by agreement, the requirement under subsection (a) that the information be in the form of an electronic record capable of retention may also be varied by agreement; and (2) a requirement under a law other than this chapter to send, communicate, or transmit a record by first-class mail, postage prepaid, may be varied by agreement to the extent permitted by the other law. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 149.

Signature (a) An electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable. (b) The effect of an electronic record or electronic signature attributed to a person under subsection (a) is determined from the context and surrounding circumstances at the time of its creation, execution, or adoption, including the parties' agreement, if any, and otherwise as provided by law. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 150.

If a change or error in an electronic record occurs in a transmission between parties to a transaction, the following rules apply: (1) If the parties have agreed to use a security procedure to detect changes or errors and one party has conformed to the procedure, but the other party has not, and the nonconforming party would have detected the change or error had that party also conformed, the conforming party may avoid the effect of the changed or erroneous electronic record. (2) In an automated transaction involving an individual, the individual may avoid the effect of an electronic record that resulted from an error made by the individual in dealing with the electronic agent of another person if the electronic agent did not provide an opportunity for the prevention or correction of the error and, at the time the individual learns of the error, the individual: (A) promptly notifies the other person of the error and that the individual did not intend to be bound by the electronic record received by the other person; (B) takes reasonable steps, including steps that conform to the other person's reasonable instructions, to return to the other person or, if instructed by the other person, to destroy the consideration received, if any, as a result of the erroneous electronic record; and (C) has not used or received any benefit or value from the consideration, if any, received from the other person. (3) If neither paragraph (1) nor paragraph (2) applies, the change or error has the effect provided by other law, including the law of mistake, and the parties' contract, if any. (4) Paragraphs (2) and (3) may not be varied by agreement. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 150.

If a law requires a signature or record to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by other applicable law, is attached to or logically associated with the signature or record. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 151.

(a) If a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record which: (1) accurately reflects the information set forth in the record after it was first generated in its final form as an electronic record or otherwise; and (2) remains accessible for later reference. (b) A requirement to retain a record in accordance with subsection (a) does not apply to any information the sole purpose of which is to enable the record to be sent, communicated, or received. (c) A person may satisfy subsection (a) by using the services of another person if the requirements of that subsection are satisfied. (d) If a law requires a record to be presented or retained in its original form, or provides consequences if the record is not presented or retained in its original form, that law is satisfied by an electronic record retained in accordance with subsection (a). (e) If a law requires retention of a check, that requirement is satisfied by retention of an electronic record of the information on the front and back of the check in accordance with subsection (a). (f) A record retained as an electronic record in accordance with subsection (a) satisfies a law requiring a person to retain a record for evidentiary, audit, or like purposes, unless a law enacted after the effective date of this chapter specifically prohibits the use of an electronic record for the specified purpose. (g) This section does not preclude a governmental agency of this State from specifying additional requirements far the retention of a record subject to the agency's jurisdiction. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 151.

In a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 152.

In an automated transaction, the following rules apply: (1) A contract may be formed by the interaction of electronic agents of the parties, even if no individual was aware of or reviewed the electronic agents' actions or the resulting terms and agreements. (2) A contract may be formed by the interaction of an electronic agent and an individual, acting on the individual's own behalf or for another person, including by an interaction in which the individual performs actions that the individual is free to refuse to perform and which the individual knows or has reason to know will cause the electronic agent to complete the transaction or performance. (3) The terms of the contract are determined by the substantive law applicable to it. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 152.

(a) Unless otherwise agreed between the sender and the recipient, an electronic record is sent when it: (1) is addressed properly or otherwise directed properly to an information processing system that the recipient has designated or uses for the purpose of receiving electronic records or information of the type sent and from which the recipient is able to retrieve the electronic record; (2) is in a form capable of being processed by that system; and (3) enters an information processing system outside the control of the sender or of a person that sent the electronic record on behalf of the sender or enters a region of the information processing system designated or used by the recipient which is under the control of the recipient. (b) Unless otherwise agreed between a sender and the recipient, an electronic record is received when: (1) it enters an information processing system that the recipient has designated or uses for the purpose of receiving electronic records or information of the type sent and from which the recipient is able to retrieve the electronic record; and (2) it is in a form capable of being processed by that system. (c) Subsection (b) applies even if the place the information processing system is located is different from the place the electronic record is deemed to be received under subsection (d). (d) Unless otherwise expressly provided in the electronic record or agreed between the sender and the recipient, an electronic record is deemed to be sent from the sender's place of business and to be received at the recipient's place of business. For purposes of this subsection, the following rules apply: (1) If the sender or recipient has more than one place of business, the place of business of that person is the place having the closest relationship to the underlying transaction. (2) If the sender or the recipient does not have a place of business, the place of business is the sender's or recipient's residence, as the case may be. (e) An electronic record is received under subsection (b) even if no individual is aware of its receipt. (f) Receipt of an electronic acknowledgment from an information processing system described in subsection (b) establishes that a record was received but, by itself, does not establish that the content sent corresponds to the content received. (g) If a person is aware that an electronic record purportedly sent under subsection (a), or purportedly received under subsection (b), was not actually sent or received, the legal effect of the sending or receipt is determined by other applicable law. Except to the extent permitted by the other law, the requirements of this subsection may not be varied by agreement. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 153.

(a) In this section, "transferable record" means an electronic record that: (1) would be a note under Title 11A, section [3-104], Virgin Islands Code or a document under Title 11A, section [7-102], Virgin Islands Code if the electronic record were in writing; and (2) the issuer of the electronic record expressly has agreed is a transferable record. (b) A person has control of a transferable record if a system employed for evidencing the transfer of interests in the transferable record reliably establishes that person as the person to which the transferable record was issued or transferred. (c) A system satisfies subsection (b), and a person is deemed to have control of a transferable record, if the transferable record is created, stored, and assigned in such a manner that: (1) a single authoritative copy of the transferable record exists which is unique, identifiable, and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable; (2) the authoritative copy identifies the person asserting control as: (A) the person to which the transferable record was issued; or (B) if the authoritative copy indicates that the transferable record has been transferred, the person to which the transferable record was most recently transferred; (3) the authoritative copy is communicated to and maintained by the person asserting control or its designated custodian; (4) copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control; (5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and (6) any revision of the authoritative copy is readily identifiable as authorized or unauthorized. (d) Except as otherwise agreed, a person having control of a transferable record is the holder, as defined in Title 11A, section 1-201, paragraph 20, Virgin Islands Code, of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under Title 11A, Virgin Islands Code, including, if the applicable statutory requirements under Title 11A, sections 3-302(a), 7-501, or 9-308, Virgin Islands Code are satisfied, the rights and defenses of a holder in due course, a holder to which a negotiable document of title has been duly negotiated, or a purchaser, respectively. Delivery, possession, and endorsement are not required to obtain or exercise any of the rights under this subsection. (e) Except as otherwise agreed, an obligor under a transferable record has the same rights and defenses as an equivalent obligor under equivalent records or writings under Title 11A, Virgin Islands Code. (f) If requested by a person against which enforcement is sought, the person seeking to enforce the transferable record shall provide reasonable proof that the person is in control of the transferable record. Proof may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 154.

Written Records By Government Agencies Each governmental agency, department and independent instrumentality of the Government of the Virgin Islands may determine whether, and the extent to which, it will create and retain electronic records and convert written records to electronic records. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 156.

Governmental Agencies (a) Except as otherwise provided in section 112(f), each governmental agency, department and independent instrumentality of the Government of the Virgin Islands shall determine whether, and the extent to which, it will send and accept electronic records and electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use, and rely upon electronic records and electronic signatures. (b) To the extent that a governmental agency uses electronic records and electronic signatures under subsection (a), the governmental agency, department and independent instrumentality of the Government of the Virgin Islands, giving due consideration to security, may specify: (1) the manner and format in which the electronic records must be created, generated, sent, communicated, received, and stored and the systems established for those purposes; (2) if electronic records must be signed by electronic means, the type of electronic signature required, the manner and format in which the electronic signature must be affixed to the electronic record, and the identity of, or criteria that must be met by, any third party used by a person filing a document to facilitate the process; (3) control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality, and auditability of electronic records; and (4) any other required attributes for electronic records which are specified for corresponding nonelectronic records or reasonably necessary under the circumstances. (c) Except as otherwise provided in section 112(f), this chapter does not require a governmental agency of this State to use or permit the use of electronic records or electronic signatures. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 157.

The governmental agency, department and independent instrumentality of the Government of the Virgin Islands which adopts standards pursuant to section 118 may encourage and promote consistency and interoperability with similar requirements adopted by other governmental agencies, departments and independent instrumentalities of the Government of the Virgin Islands and other States and the federal government and nongovernmental persons interacting with governmental agencies of this State. If appropriate, those standards may specify differing levels of standards from which governmental agencies, departments and independent instrumentalities of the Government of the Virgin Islands may choose in implementing the most appropriate standard for a particular application. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 158.

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. History: Added Dec. 23, 2003, No. 6634, § 50, Sess. L. 2003, p. 158.

Every person engaged in trade who holds a license for which the initial fee of $25 or more is paid shall keep a daybook and a ledger, in which he shall record his business transactions.

If any trader as classified in section 921 of this title is found without the books required by such section, or fails to record his business transactions therein, he shall be fined not more than $50.

(a) The rate of interest shall be nine (9%) per centum per annum on- (1) all monies which have become due; (2) money received to the use of another and retained beyond a reasonable time without the owner's consent, either express or implied; (3) money due upon the settlement of matured accounts from the day the balance is ascertained; and (4) money due or to become due where there is a contract and no rate is specified. (b) (1) On written contracts, by express agreement of the parties, the maximum rate of interest per annum shall not exceed 181/2% on amounts of $9,000 or less. All amounts in excess of $9,000 shall be exempted from any maximum interest rate limitations. All loans shall be subject to paragraph (4) of this subsection. (2) On firsparagraph (4)rtgage loans on real estate where the amount of the first priority mortgage loan is $100,000 or less, the maximum rate of interest per annum shall be as follows: (A) not more than one and one-half percentage points above the Federal Home Loan Mortgage Corporation's posted yield on the last business day of the month on thirty-year standard conventional fixed rate mortgages committed for delivery within sixty days, rounded to the nearest one-fourth percent, which rate shall (i) take effect on the first day of the immediately subsequent month and continue in effect for the remainder of said month, and (ii) apply to all commitments made by a lender during the said month; plus (B) a maximum of a $150 application fee, 50 percent of which shall be refunded to the borrower unless the application is approved; plus (C) one and one-half points at the time of the mortgage closing. Provided, however, that if for any reason, the Mortgage Corporation ceases its auction, temporarily or permanently, the rate in part (A) of this paragraph shall be basedpart (A)ral Home Loan Bank Board's average monthly contract rate; provided, further, that in transactions where the amount loaned exceeds seventy percent of the amount of the purchase price of the property, one-quarter of one percent may be added to the rate determined in part (A) of this paragraph for each five percpart (A)ement above seventy; plus in transactions where the term of the loan exceeds 20 years, one-quarter of one percent may be added to the rate determined in part (A) of this paragraph in addition topart (A)unt in the first clause of this proviso for each five years in excess of 20 years. (3) No interest rate on first priority mortgage loans, as provided in this subsection, shall be usurious if such rate is in conformity, at the time of loan commitment, with the rate ascertained and published by the Chairman of the Banking Board as provided in paragraph (7) of this subsection. (4) No fee, penalty, or other form of payment may be charged a borrower for prepayment of all or part of the balance of a loan, which loan is subject to the maximum rates provided by this section. (5) On first priority mortgage loans, no handling fee or other form of administrative cost for servicing the loan may be charged other than the fees and interest in paragraph (2) of tparagraph (2)n; provided, that actual out-of-pocket costs such as appraisal fees, document recordation charges, legal fees, survey costs and the cost of a credit check may be charged by the lender to the borrower notwithstanding the limitations of this section; And provided, further, That such fees are included in the good faith estimate and the disclosure statement required under the provisions of the Truth in Lending Act (PLending Acts amended; 15 U.S.C.1638),15 U.S.C.15state SettleReal Estate Settlement Procedures Actended; 12 U.S.C.2603 and 2604(c)) and related regulations. (6) First priority mortgage loans in excess of $100,000 are exempt from any maximum interest rate limitation, but are subject to the provisions of paragraphparagraph (4) subsection. No fee, penalty, or other form of payment may be charged a borrower for prepayment of all or part of the balance of such loans. (7) The Chairman of the Banking Board shall ascertain the permissible rate as defined in paragraph (2) of this subsection for each month and shall publish such rate and otherwise make it available to the public. (c) The maximum lawful rate of interest on first priority mortgage loans on real estate prescribed by this section shall not apply to any loan insured or guaranteed in whole or in part by the Federal Housing Authority, the Veterans Administration or any other department or agency of the United States Government, provided that such loan is subject to a federal ceiling consisting of a maximum rate of interest and any origination fee and/or discount points allowed by federal law or by such department or agency (d) Each bank shall report to the Banking Board and the Legislature of the United States Virgin Islands once quarterly the number of first priority mortgage loans made, the amount of each such mortgage, the rate at which each mortgage loan was made, and the term of each such mortgage loan; Provided however, That no information shall be released which would reveal the identity of the mortgagor. (e) The maximum lawful rate of interest as established by this section shall not apply to interest paid on bonds issued by the Government of the United States Virgin Islands or the Public Works Acceleration Authority to effectuate the provisions of Title 19, chapter 56A, Virgin Islands Code. (f) The provisions of this section do not apply to the following: (i) Any loan of money, credit sale, or extension of credit which provides that the rate of interest charged on the unpaid balance may be adjusted from time to time as provided in the promissory note or other documents evidencing the loan, and which is secured, in whole or in part, directly or indirectly, by a mortgage on real property located in the Virgin Islands; (ii) Loans on which the interest rate may be converted from one type of rate to another; (iii) Loans to entities other than natural persons, including but not limited to corporations, partnerships, limited partnerships, limited liability companies, and other legal entities; (iv) Loans to any entity or person for business or commercial purpose; (v) Home equity loans as provided for in title 9 Virgin Islands Code, chapter 12, section 141(a)(7); and (vi) Any loan or extension of credit to an entity or individual for the purchase of a "timeshare real property" as that term is defined in Title 33 Virgin Islands Code, Chapter 81, Section 2301(c)(4). History: Amended Mar. 16, 1962, No. 845, Sess. L. 1962, p. 84; July 1, 1974, No. 3587, § 2, Sess. L. 1974, p. 132; Sept. 11, 1978, No. 4208, § 2, Sess. L. 1978, p. 232; Feb. 13, 1979, No. 4261, § 2, Sess. L. 1979, p. 4; Dec. 18, 1979, No. 4376, § 1, Sess. L. 1979, p. 249; July 30, 1982, No. 4734, § 1, Sess. L. 1982, p. 125; Oct. 26, 1982, No. 4755, § 12, Sess. L. 1982, p. 173; May 19, 1983, No. 4805, § 5, Sess. L. 1983, p. 52; July 11, 1983, No. 4849, §§ 1(a)-(c), 2, Sess. L. 1983, pp. 121, 122; May 14, 1985, No. 5060, § 309(b), Sess. L. 1985, p. 48; Mar. 5, 2005, No. 6727, § 12, Sess. L. 2005, p. 57; July 18, 2009, No. 7081, § 4(a), (b), Sess. L. 2009, p. 139; Oct. 7, 2011, No. 7307, § 9, Sess. L. 2011, p. 217.

No person shall, directly or indirectly, receive in money, goods, or things in action, or in any other manner, any greater sum or value for the loan or use of money, or upon contract founded upon any bargain, sale or loan of wares, merchandise, goods, chattels, lands and tenements, than prescribed in this chapter.

If usurious interest, as defined by sections 951 and 952 of this title, shall be received or collected, the person or persons paying the same, or their legal representatives, may by an action brought within two years after such payment, receive from the person, firm, or corporation, having received the same, double the amount of the interest so received or collected.

If it is ascertained in any action brought on any contract, that a rate of interest has been contracted for greater than is authorized by this chapter, whether directly or indirectly, in money, property, or other valuable thing, or that any gift or donation of money, property, or other valuable thing has been made or promised to be made to a lender or creditor, or to any person for him, the design of which is to obtain for money loaned or for debts due or to become due, a rate of interest greater than that specified by the provisions of this chapter, the same shall be usurious and shall work a forfeiture of the entire interest on the debt. The court before which such action is prosecuted shall render judgment for the amount due on the sum loaned or the debt contracted, without interest, against the defendant, and for the costs of the action, against the plaintiff, whether such action is contested or not.

Nothing in this chapter shall be construed to prevent a bona fide assignee of any usurious contract, who had no notice of the usury affecting the contract, from recovering against his immediate assignor, or the original usurer, the full amount paid by him for such contract.

(a) All contracts made and entered into by and between the borrower and lender, debtor and creditor or mortgagor and mortgagee, on which the rate of interest is six per centum or under, wherein one party agrees to pay the taxes on the debt, credit, or mortgage existing or entered into between such parties, are legal and valid and shall not be deemed or taken to be usurious. (b) All contracts of the type described in subsection (a) of this section may be enforced by the parties thereto.

Notwithstanding any other provisions of law to the contrary, the rate of interest charged by a "card issuer" of a "credit card", as such terms are defined by 15 U.S.C., §1602, shall be governed by laws of the state of incorporation of the card issuer. History: Added Aug. 13, 1984, No. 4983, § 5, Sess. L. 1984, p. 225.

Notwithstanding section 951 of this chapter, no corporation, general partnership, limited partnership, limited liability partnership, limited liability company, or any other business entity, however formed, may plead any law against usury, including any restriction or prohibition of prepayment penalties or other fees and charges under this chapter, in any court as a defense in any action instituted to enforce the payment of any bond, note or other evidence of indebtedness issued or assumed by the entity. History: Added Sept. 29, 2004, No. 6675, § 26, Sess. L. 2004, p. 52.

This chapter may be cited as the Uniform Trade Secrets Act. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 102.

As used in this chapter, unless the context requires otherwise: (a) "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means; (b) "Misappropriation" means: (1) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (2) disclosure or use of a trade secret of another without express or implied consent by a person who: (A) used improper means to acquire knowledge of the trade secret; or (B) at the time of disclosure or use, knew or had reason to know that his knowledge of the trade secret was (i) derived from or through a person who had utilized improper means to acquire it; (ii) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (iii) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (C) before a material change of his [or her] position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake. (c) "Person" means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity. (d) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, pp. 102, 103.

(a) Actual or threatened misappropriation may be enjoined. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation. (b) In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable. (c) In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 104.

(a) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator's unauthorized disclosure or use of a trade secret. (b) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a). History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 104.

If (1) a claim of misappropriation is made in bad faith, (2) a motion to terminate an injunction is made or resisted in bad faith, or (3) willful and malicious misappropriation exists, the court may award reasonable attorney's fees to the prevailing party. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 104.

In an action under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in- camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 105.

An action for misappropriation must be brought within 3 years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered. For the purposes of this section, a continuing misappropriation constitutes a single claim. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 105.

(a) Except as provided in subsection (b), this chapter displaces conflicting tort, restitutionary, and other law of this State providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) contractual remedies, whether or not based upon misappropriation of a trade secret; (2) other civil remedies that are not based upon misappropriation of a trade secret; or (3) criminal remedies, whether or not based upon misappropriation of a trade secret. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 105.

This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 105.

If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. History: Added Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 105.

The provisions of this chapter shall be administered and enforced by the Consumer Services Administration under the direction and general supervision of the Director of Consumer Services. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124; May 13, 1973, No. 3431, § 8, Sess. L. 1973, p. 111; renumbered Mar. 5, 2005, No. 6730, § 22, Sess. L. 2005, p. 102.

(a) The Consumer Services Administration may investigate the prices at which all articles of food and general supplies are sold or purchased by importers, merchants, dealers, producers, manufacturers or consumers. (b) For the purpose of subsection (a) of this section, the invoices of all such persons shall be opened to inspection by the Consumer Services Administration and, if necessary, it may issue subpoenas for the attendance of witnesses or for the production of invoices or other documents, and shall have the power to take testimony under oath. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124.

The Consumer Services Administration may determine the prices and quantities at which all or any article of food and general supplies may be sold by wholesalers, retailers, producers, or manufacturers provided: (1) a reasonable margin of profit is allowed; and (2) a wholesale price and a retail price is set for each item. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124.

The Consumer Services Administration may, subject to approval of the Governor, restrict exportation of all locally produced or imported manufactured articles of food, and general supplies to the extent of the amount required for local consumption. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124.

(a) The Consumer Services Administration shall publish regularly and at least once a month a schedule of the approved selling price of basic food commodities and general supplies. (b) All supermarkets must provide a price list for all milk, bread, rice, flour, potatoes, cereal, juice, including canned, bottled and frozen juice and juice packs, bottled water, dried beans, fruits, vegetables, meats and poultry offered for sale by no later than the first Monday of every month, except when such Monday is a holiday. Then, and in such event, the list must be submitted on the Tuesday immediately following that Monday. For purposes of this subsection, "supermarket" means a departmentalized retail establishment offering primarily on a self-serve basis a variety of dry goods, meats, perishable produce and dairy products, as well as a variety of convenience, nonfood merchandise. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124; Nov. 25, 2009, No. 7132, § 1, Sess. L. 2009, p. 244.

The Consumer Services Administration may make all rules and regulations necessary to efficiently carry out the powers herein granted. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124.

Any person aggrieved by an order issued under this chapter may appeal to the Consumer Services Administration within 10 days after issuance of the order. The Director of Consumer Services shall issue an order affirming, modifying, or reversing the order from which the appeal was taken. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124; May 13, 1973, No. 3431, § 8, Sess. L. 1973, p. 111.

(a) Within ten days after issuance of an order of the Consumer Services Administration under section 1051 of this title, any aggrieved party may file a petition to review such action in the District Court and shall forthwith serve a copy of such petition upon the Director of Consumer Services. Thereupon the Director shall certify and file with the court a transcript of the record upon which the order complained of was entered. Upon the filing of such transcript the court shall have exclusive jurisdiction to affirm or set aside such order or remand the proceedings. The Director may at any time he deems upon reasonable notice and in such manner as proper, rescind, modify or set aside, in whole or in part, any such order, notwithstanding the pendency of the petition to review. (b) No order shall be set aside or remanded unless the petitioner establishes to the satisfaction of the court that the order is not in accordance with law, or is not supported by substantial evidence. (c) The commencement of proceedings under this section shall not operate as a stay of the order of the Director. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124; May 13, 1973, No. 3431, § 8, Sess. L. 1973, p. 111.

Whoever- (1) refuses to appear before the Consumer Services Administration when summoned; or (2) refuses to testify; or (3) testifies falsely; or (4) fails to produce invoices or documents required; or (5) sells at a price other than prescribed by the Consumer Services Administration or by the Director of Consumer Services on appeal; or (6) violates any rule or regulation promulgated by the Consumer Services Administration under this chapter- shall be fined not more than $200 or imprisoned not more than 180 days, or both. History: Amended May 23, 1969, No. 2469, § 4, Sess. L. 1969, p. 124.

History: Repealed. May 13, 1973, No. 3431, § 6, Sess. L. 1973, p. 111.

Associations A person doing business in the United States Virgin Islands under any name other than his own, and every copartnership or association of individuals, except corporations, doing business in the United States Virgin Islands, resident or nonresident, shall file in the office of the Lieutenant Governor a certificate setting forth the designation, name or style under which said business is to be conducted, the location of such business, a brief description of the kind of business to be transacted under such name, and the true and real name or names of the party or parties conducting or intending to conduct same, or having an interest therein, together with the post-office address or addresses of said person or persons. Such certificate shall be executed and acknowledged by the party or parties conducting or intending to conduct said business, or having an interest therein, before an officer authorized by the laws of the United States Virgin Islands to authenticate signatures, and shall be filed within five days prior to the commencement of business. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

If a person who was required by the provisions of section 1201 of this title to register with the office of the Lieutenant Governor fails to do so and dies, the legal representative of such deceased person may register under such section in the name of the estate of such decedent. Such registration shall be sufficient for all purposes under the provisions of this chapter. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

(a) A corporation doing business in the Virgin Islands under any name other than that of the corporation as set forth in the articles of incorporation or amendments thereto shall be subject to all the provisions of this chapter; and shall file a certificate setting forth the designation, name or style under which said business is to be conducted, the location of said business, a brief description of the kind of business transacted under such name, and the corporate name and location of the principal office of such corporation. Such certificate shall be made under the seal of the corporation and signed by its president or vice-president, and its secretary or assistant secretary; and the president or such vice-president shall acknowledge the certificate before an officer authorized by the laws of the United States Virgin Islands to authenticate signatures. The certificate, so executed and acknowledged, shall be filed in the office of the Lieutenant Governor within five days prior to the commencement of business, and a copy thereof, certified by the Lieutenant Governor, shall be filed by the Lieutenant Governor in the office of the clerk of the District Court in the judicial division in which the original articles of incorporation are filed. (b) For the purposes of this chapter, the term "corporation" shall include a limited liability company. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6; amended Feb. 12, 1998, No. 6204, § 2(a), Sess. L. 1998, p. 98.

A trade name registered in accordance with the provisions of this chapter shall not be the same as, nor so similar as to cause confusion with, the trade name of any person, partnership, association or corporation, foreign or domestic, doing business under such trade name in the United States Virgin Islands. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

The Lieutenant Governor shall prepare forms for the certificate and shall, upon request, furnish forms by mail or otherwise to persons, copartnerships, associations and corporations subject to the provisions of this chapter. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

A person, copartnership, association or corporation required by the provisions of this chapter to file a certificate shall, at the time of filing thereof as hereinbefore provided, pay a registration fee of $25 to the Lieutenant Governor. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6; amended Oct. 13, 1993, No. 5891, § 6(a), Sess. L. 1993, p. 235.

If a person, copartnership, association, or corporation carrying on business in the United States Virgin Islands shall fail or refuse to file the certificate required by this chapter, the Lieutenant Governor shall refer the matter to the Attorney General who may institute an action in the District Court to enjoin the carrying on of such business. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

Service of process hereunder may be made by delivering within the United States Virgin Islands a copy thereof to any person so doing business or any servant or agent of such person, copartnership or association or corporation, or in any manner otherwise provided by law. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

(a) When a person, copartnership, association or corporation subject to the provisions of this chapter shall cease to do business in the United States Virgin Islands, a certificate setting forth such fact and the date whereon it so ceased shall be filed with the Lieutenant Governor within ten days after the date such business ceases. Such certificate shall be sworn to and filed by a surviving partner, member of such association, or person so doing business, his executor or administrator. In the case of a corporation or limited liability company, such certificate shall be executed, acknowledged, and filed in the same manner as provided in section 1203, subsection (d) of this chapter. (b) Failure to file such certificate at the time so required shall work a forfeiture of ten dollars to be recovered by the Lieutenant Governor in an action in his name against any surviving partner, any member of such association, any officer of such corporation, any member or manager or such limited liability company or any person so doing business, his executor or administrator. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6; amended Feb. 12, 1998, No. 6204, §§ 2(b), (c), Sess. L. 1998, p. 98.

Each nonresident doing business in the United States Virgin Islands in his individual capacity, or as copartner or member of a copartnership or association required by sections 1201 and 1203 of this title to file certificates therein specified, or under any name other than his own except as otherwise provided, shall appoint in writing a person having an office or place of business and residing in the judicial division wherein the principal office of such nonresident, copartnership or association is located upon whom process against such nonresident may be served in an action founded upon a liability incurred in the United States Virgin Islands. Such appointment shall continue in force until revoked by a like instrument appointing another person therein residing and having therein an office or place of business. Such certificate shall be filed in the office of the Lieutenant Governor. In the event a nonresident has not appointed a process agent, and has not filed such appointment as above set forth, the Lieutenant Governor shall be such process agent. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

When a person appointed pursuant to the provisions of section 1210 of this title dies or removes from the United States Virgin Islands, another person residing in the United States Virgin Islands and having therein an office or place of business shall, within thirty days from the date of such death or removal, be appointed in the manner hereinbefore specified, upon whom service of process may be made as provided in section 1210 of this title. In case of such death or removal, or if a person is not appointed as aforesaid, process against such nonresident person may be served by delivering to the Lieutenant Governor duplicate copies thereof, which service shall be effectual for all purposes of law. The Lieutenant Governor shall enter alphabetically in a process book kept for that purpose, the name of plaintiff and defendant, the title number, if any of the cause in which process has been served upon him, and day and hour when the service was made. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

A person, copartnership, association or corporation required by the provisions of this chapter, to file a certificate and pay a registration fee, and failing to do so may not commence or maintain any action in any court of the United States Virgin Islands for the enforcement of any right or obligation arising out of the doing of business in the United States Virgin Islands; nor shall a license or certificate be granted to a nonresident individual, copartnership or unincorporated association to transact any business in the United States Virgin Islands unless such individual, copartnership or association has complied with the provisions of section 1210 of this title. History: Added Jan. 25, 1963, No. 923, Sess. L. 1963, p. 6.

Every person, partnership, copartnership, association, company, or corporation doing business in the United States Virgin Islands under a trade name pursuant to this chapter shall file an application to renew its tradename every two, six, or ten years and pay a fee of $100 for a two-year renewal, $300 for a six-year renewal and $500 for a ten-year renewal to the Office of the Lieutenant Governor. Any person, partnership, copartnership, association, company, or corporation which fails to renew its trade name within six months of the expiration date as required by this chapter, shall cease title to the trade name, and said tradename shall become available to anyone who files for the tradename and pays the required registration fee. History: Added Oct. 13, 1993, No. 5891, § 6(b), Sess. L. 1993, p. 235; amended Oct. 1, 2021, No. 8184, § 1, Sess. L. 2019, p. 26; amended Jan. 20, 2024, No. 8792, § 1(a), Sess. L. 2023, p. 186.

Despite the demographic composition of the Virgin Islands' registered and licensed business community, there exists a significant disparity between the number of minority and women businesses in the Territory available and qualified for contracting opportunities, and the number of government contracts awarded to those businesses. To support the growth and development of our local, small and historically disadvantaged business community, the Virgin Islands must promote equal opportunity in contracting for all persons, without discrimination for minority group members and women and business enterprises owned by them and must eradicate the barriers that have impaired access by minority and women-owned business enterprises to territory contracting opportunities. The Legislature realizes that it is crucial that the Territory take active measures to ensure that these businesses receive an opportunity to grow and develop, thereby increasing the Territory's tax receipts while creating necessary and sustainable local job opportunities. It is the intent of this chapter to provide for increasing the participation of minority and women-owned businesses in the Territory's contracting and providing equal opportunities in employment, without discrimination. It is not the intention of the Legislature by this chapter to provide loans for the capitalization of small business concerns when such funds are reasonably available from private banks or other financial institutions, public or private; however, it is the Legislature's intention to promote and encourage such banks and financial institutions to make loans on a risk basis after giving consideration to the technical and managerial assistance to be provided to loan applicants under the provisions of this chapter. Finally, the Legislature finds that the programs and activities established and authorized by this chapter are in the public interest; and they are intended to maintain and strengthen the over-all economy of the United States Virgin Islands and to promote the general welfare of its citizens. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Sept. 25, 2020, No. 8387, § 2(a), Sess. L. 2020, p. 208, 209.

(a) A person shall be eligible for all forms of assistance under this chapter if- (1) he owns at least fifty percent (50%) legal or equitable interest in a small business concern, either established or to be established, in the United States Virgin Islands; and (2) he is or will be active in the management or operation of a small business concern on a full-time basis and such small business concern is or will be his principal means of support; and (3) he was born in the United States Virgin Islands; or his mother or father was born in the United States Virgin Islands and he has been a bona fide continuous resident of the United States Virgin Islands for at least five years; or he has been a bona fide continuous resident of the United States Virgin Islands for at least 10 years. (b) A small business concern, including firms, partnerships of all kinds and corporations, shall be eligible for all forms of assistance under this chapter if at least a fifty percent (50%) legal or equitable interest therein is owned by a person or persons eligible for assistance under the provisions of subsection (a) of this section. (c) For the purpose of this chapter, a small business concern shall be deemed to be one which- (1) is owned wholly or in part by a person eligible for assistance under the provisions of subsection (a) of this section; and (2) whose receipts from all sources of any year cannot reasonably be expected at the time of application for assistance under the provisions of this chapter to exceed: (A) $1,000,000, whose investments total $20,000 and which employs at least two persons; or (B) whose receipts exceed $1,000,000, but are not more than $1,500,000, whose investments total at least $30,000 and which employs at least three persons; or (C) whose receipts are more than $1,500,000 but less than $2,500,000 whose investments total at least $40,000 and which employs at least four persons; or (D) whose receipts exceed $2,500,000 but are less than $3,000,000, whose investments total at least $50,000 and which employs not less than 5 persons; or (E) whose receipts exceed $3,000,000 but are not more than $4,000,000, whose investments total at least $60,000 and which employs not more than 50 persons; and (d) Notwithstanding any other provision of this section, the Director of the Virgin Islands Small Business Development Agency with the approval of the Loan Policy Board may grant any form of assistance available under this chapter to a small business concern that does not meet all of the eligibility requirements required by this section provided that (1) at least fifty-one percent (51%) of the legal or equitable interest in such small business concern is owned by two or more persons each of whom has been a bona fide continuous resident of the United States Virgin Islands for at least 10 years or was born in the United States Virgin Islands, or his mother or father was born in the United States Virgin Islands and he has been a bona fide continuous resident of the United States Virgin Islands for at least five years, and that (2) one of such persons is or will be active in the management or operation of such small business concern and such small business concern is or will be his principal means of support. (e) Notwithstanding any other provision of this section, the Director of the Virgin Islands Small Business Development Agency, with the approval of the Loan Policy Board, shall adjust the maximum receipts number set out in subsection (c)(2) every five years from the effective date of this subsection for to reflect annual inflation in the territory as published by the Bureau of Economic Research. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Dec. 23, 1970, No. 2883, Sess. L. 1970, p. 368; Feb. 28, 1972, No. 3177, Sess. L. 1972, p. 30; May 1, 1972, No. 3220, §§ 1, 2, Sess. L. 1972, p. 84; Sept. 1, 2005, No. 6748, § 5 1., 2., Sess. L. 2005, pp. 208, 209.

(a) In order to carry out the policies of this chapter there is created a subsidiary entity under the name of "Virgin Islands Small Business Development Agency" (herein referred to as the Agency) within, and wholly administered and operated by the Economic Development Authority. (b) The management of the Agency shall be vested in the Chief Executive Officer of the Authority. (c) The Small Business Development and Loan Fund as provided for in chapter 111 of Title 33 of this Code, shall be available for the Agency's use in financing the functions performed under section 1255 of this chapter. All repayments of loans, payments of interest, and other receipts arising out of transactions financed from the Fund shall be paid into the Fund. Not to exceed an aggregate of $15,000,000 shall be outstanding at any one time for the purposes enumerated in section 1255 of this chapter. (d) There is created the Loan Policy Board of the Virgin Islands Small Business Development Agency, which shall consist of seven members. (1) The Commissioners of Tourism and Finance, and the Chief Executive Officer of the Agency, who shall be executive secretary of the Board, shall serve as members of the Board. The remaining four members of the Board shall be appointed by the Governor from the members of the Authority's Board of Directors. The Governor shall select such members who are known to be familiar with and sympathetic to small businesses' needs and problems and who meet the conditions of paragraph (3) of subsection (a) of section 1252 of this chapter. (2) The appointed members of the Board shall be appointed for a term concurrent to their appointment to the Board of Directors of the Authority. (3) The appointed members of the Board shall receive the sum of $50 for each day or part thereof spent in the performance of his official duties. Every member of the Board shall be reimbursed for necessary travel, subsistence, and other expenses actually incurred in the discharge of his duties as such member. (4) As soon as practicable after the first members of the Board have been appointed, the members shall meet and organize by electing from among the membership a Chairman and a Vice-Chairman. The Chairman and Vice-Chairman shall be elected annually for terms of one year, and shall serve until their respective successors are elected and take office. The Chairman shall preside at all meetings and the Vice-Chairman shall preside in the absence or disability of the Chairman. The Board may, in the absence or disability of the Chairman and Vice-Chairman, elect any of its members to act as chairman pro tempore. Four members shall constitute a quorum of the Board for the transaction of business, and the Board may function notwithstanding vacancies provided a quorum is present. The Board shall meet at such times and places as it may fix and determine, but shall hold at least six regularly scheduled meetings a year; and special meetings may be held on call of the Chairman or any three members. (e) (1) The Loan Policy Board shall establish general policies and guidelines (particularly with reference to the public interest involved in the granting and denial of applications for financial assistance by the Agency and with reference to the coordination of the functions of the Agency with other activities and policies of the Government), which shall govern the granting and denial of applications for financial or technical assistance by the Agency. (2) The Loan Policy Board shall administer the Small Business Incubator Program established in subchapter II of this chapter and may promulgate rules and regulations and exercise all powers necessary to carry out the purpose of the Program. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended May 15, 1987, No. 5256, § 2, Sess. L. 1987, p. 13; Sept. 28, 1990, No. 5636, § 1(c), Sess. L. 1990, p. 346; Dec. 28, 1995, No. 6090, § 11, Sess. L. 1995, p. 254; Feb. 1, 2001, No. 6390, § 19, Sess. L. 2000, p. 420; Aug. 11, 2005, No. 6753, § 2, Sess. L. 2005, p. 223.

Use of Other Services and Facilities (a) The Agency shall have power to adopt, alter, and use a seal, which shall be judicially noticed. The Director is authorized, subject to the provisions of chapter 25 of Title 3 of the Virgin Islands Code, to select, employ and recommend for appointment such officers, employees and agents as shall be necessary to carry out the provisions of this chapter; and to define their authority and duties; provided, however, that the Director is authorized to select and employ officers, employees and agents for periods not to exceed six months to accomplish such projects, programs and assignments as the Director may deem essential to carry out the purposes of this chapter without compliance with the provisions of chapter 25 of Title 3 of this Code; provided, however, that the hiring of any such person shall be evidenced by a contract in writing approved by the Attorney General or an Assistant duly authorized in writing; and provided, further, that the Director shall submit on June 30, and December 30 of each year to the Governor and the Legislature a list of the employment of all such persons, with a description of their duties, compensation and length of employment. The Agency, with the consent of any board, commission, instrumentality, authority, or executive department of the Government, may avail itself on a reimbursable or non-reimbursable basis of the use of information, services, facilities (including any field service thereof), officers, and employees thereof, in carrying out the provisions of this chapter. (b) In the performance of, and with respect to, the functions, powers, and duties vested in him by this chapter the Director may- (1) sue and be sued only in actions arising out of contract in the District and Superior Court of the United States Virgin Islands; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Director or the property of the Agency; (2) under regulations prescribed by him, assign or sell at public or private sale, or otherwise dispose of for cash or credit, in his discretion and upon such terms and conditions and for such consideration as the Director shall determine to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by the Agency in connection with the payment of loans granted under this chapter, and to collect or compromise all obligations assigned to or held by the Agency and all legal or equitable rights accruing to him in connection with the payment of such loans until such time as such obligations may be referred to the Attorney General for suit or collection; provided, that any such compromise shall be subject to prior approval of the Loan Policy Board; (3) deal with, complete, renovate, improve, modernize, insure, or rent, or sell for cash or credit upon such terms and conditions and for such consideration as the Director shall determine to be reasonable, any real property conveyed to or otherwise acquired by the Agency in connection with the payment of loans granted under this chapter; (4) pursue to final collection, by way of compromise or otherwise, all claims against third parties assigned to the Agency in connection with loans made by the Agency; provided, that any such compromise shall be subject to prior approval of the Loan Policy Board; this shall include authority to obtain deficiency judgments or otherwise in the case of mortgages assigned to the Agency. The power to convey and to execute in the name of the Agency deeds of conveyance, deeds of release, assignments and satisfaction of mortgages, and any other written instrument relating to real property or any interest therein acquired by the Agency pursuant to the provisions of this chapter may be exercised by the Director or by any officer or agent appointed by him with an express delegation of power of attorney; (5) acquire, in any lawful manner, any property (real, personal, or mixed, tangible or intangible), whenever deemed necessary and appropriate to the conduct of the activities authorized in section 1255 of this chapter. (6) make such rules and regulations as he deems necessary to carry out the authority vested in him by or pursuant to this chapter; (7) in addition to any powers, functions, privileges, and immunities otherwise vested in him, take any and all action determined by him to be necessary or desirable in making, servicing, compromising, modifying, liquidating, or otherwise dealing with or realizing on loans made under the provisions of this chapter; provided, that no loan shall be compromised, modified or liquidated without the prior approval of the Loan Policy Board; (8) accept the services and facilities of federal, territorial, and local agencies and groups, both public and private, and utilize such gratuitous services and facilities as may, from time to time, be necessary, to further the objectives of this chapter; (9) make contracts and cooperative agreements with public and private agencies, private corporations, industries and businesses, to cooperate in managerial and technical training; and to provide for employment therewith at the management level of persons eligible for assistance under the provisions of this chapter; (10) establish single and joint accounts in banks, both savings and checking, with persons receiving funds and assistance under this chapter, and to disburse singly or jointly funds therefrom jointly with such persons when such joint disbursement is deemed necessary in the public interest. (c) To such extent as he finds necessary to carry out the provisions of this chapter, the Director is authorized to procure the services of experts or consultants or organizations thereof. The Director may assign all accounts, which are inactive and delinquent more than one hundred and eighty (180) days from when they are first due and owing, to a third party collection agency for collection. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Feb. 12, 1971, No. 2935, §§ 1, 2, Sess. L. 1970, p. 425, 426; Sept. 9, 1976, No. 3876, § 5, Sess. L. 1976, p. 197; Dec. 13, 1993, No. 5917, § 4, Sess. L. 1993, p. 278.

Conditions (a) The Director is authorized, subject to the provisions of section 1256 of this chapter and subject to the prior approval of the Loan Policy Board, to make, participate (on an immediate basis) in, or guarantee loans, repayable in not more than 15 years, to any small business concern (as defined in section 1252 and regulations issued thereunder), or to any eligible person as defined in section 1252 of this chapter seeking to establish such a concern, when he determines that such loans will assist in carrying out the purposes of this chapter: provided, however, that no loan shall be made from the Small Business Development and Loan Fund to a single borrower if the total of all loans from such Fund to such borrower outstanding at any one time would exceed $100,000; and provided, further, that no such loans shall be made, participated in, or guaranteed if the total of such assistance under the provisions of this chapter to a single borrower outstanding at any one time would exceed $300,000; and provided, further, that when the Economic Development Agency of the United States Department of Commerce is participating with the local government in financing a particular project, the maximum time for repayment of the loan shall be the same as for loans made, participated in or guaranteed by the Economic Development Agency of the United States Department of Commerce. The Director may defer payments on the principal of such loans for a grace period and use such other methods as he deems necessary and appropriate to assure the successful establishment and operation of such small business concern. The Director shall, unless it is clearly indicated to be unnecessary, as a condition of such financial assistance, require that the borrower take steps to improve his management skills by participating in a management training program approved by the Director; provided, however, that any management training program so approved must be of sufficient scope and duration to provide reasonable opportunity for the individuals served to develop entrepreneurial and managerial self-sufficiency. The Director shall encourage, as far as possible, the participation of the private business community in the programs of assistance to such small business concerns, and seek to stimulate new private lending activities to such concerns through the use of the loan guaranties and participations in loans. (b) The Director shall provide for continuing evaluation of programs under this section, including information on the location, income characteristics, and types of businesses and individuals assisted and new private lending activity stimulated. The results of such evaluation together with recommendations shall be included in the report required by section 1263 of this chapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Feb. 15, 1973, No. 3388, Sess. L. 1972, p. 574; Apr. 17, 1973, No. 3416, Sess. L. 1973, p. 44.

Loans made pursuant to section 1255 of this chapter (including immediate participation in and guaranties of such loans) shall have such terms and conditions as the Loan Policy Board shall determine, subject to the following limitations- (1) there is a reasonable assurance of repayment of the loan; (2) the financial assistance is not otherwise available on reasonable terms from private sources or from federal or other territorial government programs; (3) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made; (4) the loan bears interest at a uniform, established rate for all borrowers: provided, however, that the Loan Policy Board, upon recommendation of the Director, may establish a new rate from time to time, taking into consideration the going rate on commercial loans made by banks and financial institutions in the United States Virgin Islands and the general condition of the economy; (5) fees not in excess of amounts necessary to cover administrative expenses may be required on loan guaranties or direct loans. (6) loans made for the purchase of inventory or motor vehicles shall be repayable in not more than five years; (7) loans made for the purchase of equipment shall be repayable in not more than ten years; (8) loans made for the acquisition of land; or the construction, conversion or expansion of buildings shall not exceed 50% of the total loans to new small business concerns; and shall not be made unless at least three banks doing business in the United States Virgin Islands have refused to grant a conventional mortgage loan on the property at a rate of interest normally charged on such loans in the United States Virgin Islands with a term of fifteen years; (9) no loan shall be made to any corporation unless the repayment of such loan is guaranteed by all stockholders of such corporate borrower. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Sept. 4, 1986, No. 5192, § 1, Sess. L. 1986, p. 208.

The Director is authorized, subject to the prior approval of the Loan Policy Board, to guarantee the payment of rents on behalf of any small business concern eligible for assistance under the provisions of this chapter when it is determined that such guarantee is consistent with the purposes of this chapter. In those instances where the tenant is a corporation, all stockholders shall first guarantee the payment of rents prior to the Director making any guarantee pursuant to this subchapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

Assistance to Organizations to Provide Technical Assistance (a) In order that eligible persons, as defined in section 1252 of this chapter, may establish and operate small business concerns in the United States Virgin Islands, the Director shall provide technical assistance. The technical assistance provided shall include, but not be limited to the following: (1) aid in preparing loan applications and presentations. (2) consulting services relating to business organization, business management, accounting services, legal requirements, and general entrepreneurial skills. (3) ongoing consulting services to new or reorganized small business concerns. (4) referral services to provide a contact between the applicant and banking and financial institutions and with existing public and private small business assistance programs. (5) disbursement control over any funds, including loans, secured to finance a small business concern if it is determined that such control will assist an eligible person in obtaining a loan from a private bank or other financial institution, public or private. (b) No technical assistance under the provisions of this section shall be granted to any eligible person unless he has the primary managerial responsibility for the small business concern he represents. (c) The Director is authorized to provide financial assistance to public and private organizations to pay all or part of the cost of projects designed to provide technical and management assistance to individual and small business concerns eligible for assistance under the provisions of this chapter. (d) Financial assistance under subsection (c) of this section may be provided for projects including without limitation- (1) planning and research, including feasibility studies and market research; (2) the identification and development of new business opportunities; (3) the furnishing of centralized services with regard to public services and government programs, including programs authorized under this chapter; (4) the establishment and strengthening of business service agencies, including trade associations and cooperatives; (5) the encouragement of the placement of subcontracts by major business with small business concerns, including the provisions of incentives and assistance to such major business so that they will aid in the training and upgrading of potential subcontractors or other small business concerns; (6) the furnishing of business counselling, management training, legal advice and other related services, with special emphasis of the development of management training programs using the resources of the business community, including the development of management training opportunities in existing business, and with emphasis in all cases of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served. (e) All projects under the provisions of subsections (c) and (d) of this section shall promote the ownership, participation in ownership, or management of small business concerns by persons eligible for assistance under the provisions of this chapter. (f) To the extent feasible, services under this section shall be provided in a location which is easily accessible to the individuals and small business concerns served and at such time or times as are most convenient for a majority of those to be served. (g) The Director shall provide for a separate and continuing evaluation of programs and projects under this section, including, but not limited to the following- (1) full information on and analysis of the character and impact of technical and managerial assistance provided; (2) a history of all applicants for assistance, including the location, income characteristics and types of businesses and individuals assisted; (3) the extent to which private resources and skills have been involved in these programs; (4) the dollar amounts of loans generated by such technical assistance, including the types of loans which were granted and the type which were not granted; (5) the value of small business assisted, including the number of new jobs created and the number of new employees and their characteristics; (6) the economic contribution returned to the Government of the United States Virgin Islands by such small businesses; and (7) the opinions as to the worth of such technical and managerial assistance as expressed by lending institutions making loans to such small business concerns. Such evaluation together with recommendations as the Director deems advisable shall be included in the report required by section 1263 of this chapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

(a) There is established in the Treasury of the United States Virgin Islands a special fund to be known as the SBDA Managerial and Technical Assistance Fund (hereinafter referred to as the "Fund"). Said Fund shall be maintained for the purpose of deposit therein of funds received from the Federal Small Business Administration to provide managerial and technical assistance to small business concerns in the United States Virgin Islands, and for disbursement therefrom of said funds for said purposes. Deposits to and disbursements from said Fund shall be made by the Commissioner of Finance upon the authorization of the Board of Directors of the Economic Development Bank. (b) The Fund also consists of fines assessed under section 1270d(o)(3) of subchapter IA, appropriations made by the Legislature from time to time, devises, bequests, or contributions from all sources. (c) Monies in the Fund must be used to implement programs established under subchapter IA of this chapter. History: Added Nov. 17, 1977, No. 4070, Sess. L. 1977, p. 274; amended Apr. 6, 1998, No. 6222, § 5, Sess. L. 1998, p. 233; amended Sept. 25, 2020, No. 8387, § 2(b), Sess. L. 2020, p. 209.

(a) The Director shall take such steps as may be necessary and appropriate, in coordination and cooperation with the heads of all government departments, agencies and authorities, so that contracts, subcontracts, and deposits made by the Government of the United States Virgin Islands or in connection with programs with Government funds are placed in such a way as to further the purposes of this chapter. (b) The Director shall provide for the continuing evaluation of the programs under this section and the results of such evaluation together with recommendations shall be included in the report required by section 1263 of this chapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

(a) In order to insure that all programs and activities related to the purposes of this chapter are carried out in a coordinated manner- (1) the Director is authorized to call upon other Government departments and agencies to supply such statistical data, program reports, and other materials, information and assistance as he deems necessary to discharge his responsibilities under this chapter; (2) all departments, agencies and authorities of the Government shall cooperate with the Director in carrying out his duties and responsibilities under this chapter; and carry out their programs and exercise their functions in such manner as will, to the maximum extent permitted by other applicable law, assist in carrying out the purposes of this chapter; and (3) the Governor shall direct that particular programs and functions (including but not limited to the expenditure of funds and the reservation of commercial and industrial sites on Government-owned land to be available for lease to small business concerns eligible for assistance under the provisions of this chapter), of the departments, agencies and authorities referred to in paragraph (2) of this section shall be carried out, to the extent not inconsistent with applicable law, in conjunction with or in support of the programs and activities authorized under this chapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

(a) In order to insure that all programs and activities related to the purposes of this chapter are utilized to the maximum extent possible, and to insure that information concerning such programs and other relevant information is readily available, the Director is authorized as he deems appropriate to collect, prepare, analyze, correlate, and distribute such information, either free of charge or by sale at cost, and make arrangements and pay for any printing and binding. (b) The Director is further authorized to obtain and distribute, free of charge or by sale at cost, information and publications issued by federal or territorial departments and agencies, and any other public or private organization, that provides information or assistance to small business concerns. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

The Director shall not duplicate the work or activities of any other department or agency of the Government of the United States Virgin Islands and nothing contained in this chapter shall be construed to authorize any such duplication unless such work or activity is expressly authorized for in this chapter. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

(a) Not later than 120 days after the close of each fiscal year, the Director shall prepare and submit to the Governor and the Legislature, a full and complete report on the activities of the programs and activities established by this chapter during such year. (b) The Director shall prepare and retain a file on each applicant, which shall include copies of all correspondence and a detailed memorandum of the reasons for acting favorably or unfavorably on the application, as the case may be. Pending the final determination of the Agency on each application all information in such files shall be confidential. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244; amended Oct. 29, 1970, No. 2858, § 2, Sess. L. 1970, p. 347.

Securities (a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Agency, or for the purpose of obtaining money, property, or anything of value, under this chapter, shall be punished by a fine of not more than $5,000, or by imprisonment for not more than five years, or both. (b) Whoever, being connected in any capacity with the Agency, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Agency or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Agency, makes any false entry in any book, report, or statement of or to the Agency, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with the intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Agency, or (4) gives any unauthorized information concerning any future action or plan of the Agency which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any small business concern receiving loans or other assistance from the Agency, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. History: Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

(a) There is hereby established the Small Businessman of the Year Award to be awarded to a client of the Small Business Development Agency who has demonstrated good business practices over a period of three years and who has been proficient and dynamic in the development of his small business concern. (b) The recipient of the Award shall be chosen annually by majority vote of the Loan Policy Board from a list of three candidates submitted to said Board by the Director; Provided, however, That the Board may choose not to confer said Award in a particular year for reasons which it deems good and appropriate. (c) The Small Business Development Agency is authorized to award an appropriate plaque to the Small Businessman of the Year at an appropriate ceremony held for that purpose. History: Added Apr. 2, 1975, No. 3681, Sess. L. 1975, p. 14.

(a) A small business concern that hires persons with disabilities is entitled to receive an annual income tax deduction of five percent of the annual salary of the person with disabilities. To qualify for the deduction, the small business' concern must have employees with disabilities who work not fewer than 20 hours per week. (b) The annual income tax deduction for a small business provided in subsection (a) of this section applies only to new hires and is offered for a period not to exceed five years. (c) For purposes of this section only: (1) "Small business concern" means a sole proprietor or legal entity, such as a corporation, cooperative, partnership, or limited liability company, licensed and doing business in the Virgin Islands, with not more than 20 employees whose owner must be a bona fide resident of the Virgin Islands with an equitable or legal interest in the business of not less than 51%. (2) (A) Bona fide resident means: (i) any United States citizen currently domiciled in the Virgin Islands for one year or longer; or (ii) the holder of an alien registration receipt card, formally designated as United States Department of Justice Form No. 1-151, domiciled in the Virgin Islands for one year or more; or (iii) a person who has attended a school in the Virgin Islands for at least five years or more or is a graduate of a Virgin Islands high school, or of the University of the Virgin Islands, and is registered to vote in the Virgin Islands. (B) For the purposes of this section, a person shall demonstrate that he has been a resident for one year or more by using the date of issuance information from a W-2 form, a voter registration card, a permanent resident card, or a Virgin Islands driver's license. History: Added Dec. 31, 2020, No. 8399, § 1, Sess. L. 2020, p. 262.

For the purposes of this subchapter, the term: (1) "Agency" when written in lower case, means an agency, department, office, board, commission, or instrumentality of the executive branch of the Government of the Virgin Islands. (2) "Business enterprise" means a business entity organized for profit. (3) "Certified business enterprise" means a business enterprise or joint venture certified pursuant to section 1270c of this subchapter. (4) "Department" means the Department of Property and Procurement established in title 3 of this Code. (5) "Chief Executive Officer" means the Chief Executive Officer of the Small Business Development Agency established in subchapter me of this chapter. (6) "Disadvantaged business enterprise" means a business enterprise as described in section 1270c, subsection (c). (7) "Economically disadvantaged individual" means an individual whose ability to compete in the free enterprise system is impaired because of diminished opportunities to obtain capital and credit as compared to others in the same line of business where such impairment is related to the individual's status as socially disadvantaged. An individual is socially disadvantaged if the individual has reason to believe that the prejudice or bias to which the individual has been subjected is because of the individual's identity as a member of a group without regard to the individual's qualities as an individual. (8) "Expendable budget" means the total budget of an agency, reduced by such funding sources, object classes, objects, and other items as identified by the Commissioner through rulemaking. (9) "Joint venture" means a combination of property, capital, efforts, skills, or knowledge of 2 or more persons or businesses to carry out a single project. (10) "Local business enterprise" means a business enterprise as described in section 1270c, subsection (a). (11) "Longtime-resident business" means a business that has been continuously eligible for certification as a local business enterprise, as defined in section 1270c, subsection (a) for at least 10 consecutive years. (12) "Resident-owned business" means a local business enterprise owned by an individual who is, or a majority number of individuals who meet the definition of a "resident", as defined in 29 V.I.C. § 1003(9) and subject to personal income tax in the Virgin Islands. (13) "Small business enterprise" means a business enterprise as described in section 1270c, subsection (b). History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 209, 210.

(a) The Small, Local, and Disadvantaged Business Enterprise Program is established within the Virgin Islands Small Business Development Agency. (b) The Small Business Development Agency shall administer the Virgin Islands Small, Local and Disadvantaged Business Enterprise Program with the objective to stimulate and foster the economic growth and development of businesses based in and serving the Virgin Islands, particularly certified business enterprises, with the intended goals of and responsibility for: (1) Stimulating and expanding the local tax base of the Territory; (2) Increasing the number of viable employment opportunities for Virgin Islands residents; (3) Extending economic prosperity to local business owners, their employees, and the communities they serve; (4) Providing information and assistance to business enterprises regarding the certification and application process; (5) Determining a business enterprise's or joint venture's initial eligibility for certification under this subchapter and reviewing and determining the continued eligibility of business enterprises and joint ventures certified under this subchapter; (6) Determining the percentage or the dollar amount of a project performed by a joint venture which may be attributed toward an agency's percentage goal; (7) Monitoring agency contracting and procurement activities to the extent those activities are related to the achievement of the goals set forth in this subchapter; (8) Monitoring third-party contracting and procurement activities to the extent those activities are related to achievement of goals related to contracting with and procuring from certified business enterprises; and (9) Conducting an audit of the financial, corporate and business records and an investigation of any small contractor or minority business enterprise that applies for or is awarded a set aside contract for the purpose of determining eligibility for awards or compliance with the requirements established under this section. (c) Through advocacy, business development programs, and technical assistance offerings, the Chief Executive Officer shall seek to maximize opportunities for certified business enterprises to participate in: (1) The Government's contracting and procurement process; (2) The Government's economic development activities; and (3) Government and private-sector business opportunities that occur in the Virgin Islands. (d) The Chief Executive Officer shall: (1) Maintain, grow, and advocate on behalf of certified business enterprises in the following areas: (A) Certified business enterprises with less than $10,000.000 in annual revenue; (B) Under separate criteria, certified business enterprises with over $10,000,000 in annual revenue; and (C) All certified business enterprises that desire to participate in contracting opportunities with any government corporation. (2) Maintain and provide public access to a list of all current government contracting and procurement bids and solicitations; (3) Maintain and provide public access to a list of other current government contracting and procurement bids and solicitations, including those of the federal government; (4) Monitor and prepare recommendations to the Commissioner of Property and Procurement to ensure agency achievement of the goals set forth in this subchapter; (5) Educate the public, including residents and businesses, about the Territory's programs for certified business enterprises; (6) Stimulate and foster greater opportunities for certified business enterprises to participate in the Government's contracting and procurement process and provide recommendations to the Commissioner of Property and Procurement and the Governor on ways to increase the participation; (7) Maintain contacts with the business community, including financial institutions and bonding companies, and elicit cooperation for economic opportunities for certified business enterprises; (8) Make recommendations related to agency and third-party contracting and procurement activities to increase participation by certified business enterprises; (9) Review the annual reports of agencies and make appropriate recommendations pursuant to the goals and objectives of this subchapter; (10) Make recommendations to the Commissioner of Property and Procurement and coordinate program activities with the contracting activities of the Department; and (11) Take such other actions as are necessary or appropriate to carry out the purposes of the subchapter. (e) To achieve the goals set forth in this subchapter, the Director shall establish by regulations issued pursuant to 3 V.I.C., chapter 35 programs for certified business enterprises. The Executive Director shall include among these programs: (1) A Small and Local Disadvantaged Business Enterprises Eligibility Certification Program; (2) A bid preference mechanism for local and disadvantaged business enterprises, resident-owned businesses, resident businesses, and local business enterprises with principal offices located in an enterprise zone; and (3) A set-aside program for small business enterprises. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 210-212.

(a) A business enterprise may not participate in a program established under this subchapter unless the business enterprise has demonstrated its capability to perform and has been issued a certificate of registration under the provisions of this subchapter or has been issued a provisional certification under regulations issued pursuant to this subchapter. (b) (1) An enterprise seeking to be certified as a local, small, or disadvantaged business enterprise, as a resident-owned business, enterprise, or as a local business enterprise with its principal office located in an enterprise zone shall file with the Director a written application on such form as may be prescribed by the Director. (2) The application must include, at a minimum, the following documents and information: (A) A certification of the correctness of the information provided; (B) Written evidence that the applicant is: (i) A bona fide local business enterprise; (ii) A bona fide disadvantaged business enterprise; (iii) A bona fide small business enterprise; (iv) A bona fide local business enterprise located in an enterprise zone; (v) bona fide resident-owned business; or (vi) A bona fide longtime resident business; (C) Evidence of ability and character; (D) Evidence of financial position, which may be the applicant's most recent financial statement. For the purposes of this subparagraph, the term "recent" means produced from data no more than 90 days before the application date; (E) Any other information the Director may require; and (F) Federal income tax returns, both corporate and personal. (c) The Chief Executive Officer shall issue to the applicant a certificate of registration if: (1) The information provided in the application or additional filings is satisfactory to the Director; (2) The business enterprise meets the standards of this subchapter; and (3) The applicant fulfills other requirements as may be established by the Chief Executive Officer. (d) A certificate of registration expires 2 years from the date of approval of the application. A business enterprise that is registered with the Small Business Development Agency may voluntarily relinquish its registration as a certified business enterprise at any time before the expiration of the 2-year term. (e) Chief Executive Officer shall give priority in reviewing applications submitted pursuant to subsection (b) of this section to any business enterprises that has received a provisional certification. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 212-214.

The Chief Executive Officer shall provide for the certification of the following business enterprises: (a) Local business enterprises-A business enterprise is eligible for certification as a local business enterprise if the business enterprise: (1) Has its principal office located physically in the Virgin Islands; (2) Requires that its chief executive officer and the highest-level managerial employees of the business enterprise maintain their offices and perform their managerial functions in the Virgin Islands; (3) Meets 1 of the 4 following standards: (A) More than 50% of the assets of the business enterprise, excluding bank accounts, are located in the Virgin Islands; (B) More than 50% of the employees of the business enterprise are residents of the Virgin Islands; (C) The owners of more than 50% of the business enterprise are residents of the Virgin Islands; or (D) More than 50% of the total sales or other revenues is derived from transactions of the business enterprise in the Virgin Islands; and (4) Is licensed pursuant to chapter 9 of title 27; or (5) Is subject to the income taxes levied in the Virgin Islands. (b) Small business enterprises-A business enterprise is eligible for certification as a small business enterprise if the business enterprise: (1) Is a local business enterprise; (2) Is independently owned, operated, and controlled; and (3) (A) Is certified by the United States Small Business Administration as a small business concern under the Small Business Act, 15 U.S.C. §631 et seq.; or (B) Has had average annualized gross receipts for the 3 years preceding certification not exceeding the following limits: (i) Construction, Heavy (Street and Highways, Bridges & similar activities) $23,000,000 (ii) Construction, Building (General Construction) $21,000,000 (iii) Construction, Specialty Trades $13,000,000 (iv) Goods and Equipment $20,000,000 (v) General Services $19,000,000 (vi) Professional Services, Personal Services (Hotel, Beauty, Laundry and similar services.) $5,000,000 (vii) Professional Services, Business Service $10,000,000 (viii) Professional Services, Health and Legal Services $10,000,000 (ix) Professional Services, Health Facilities Management $19,000,000 (x) Manufacturing Services $10,000,000 (xi) Transportation and Hauling Services $13,000,000 (xii) Financial Institutions $3,000,000 (4) A business enterprise that is affiliated with another business enterprise through common ownership, management, or control is eligible for certification as a small business enterprise if: (A) The business enterprise seeking certification as a small business enterprise is a local business enterprise; (B) The consolidated financial statements of the affiliated business enterprises do not exceed the average annualized gross receipt limits established by subsection (a)(3)(B) of this section; and (C) In the case of a parent-subsidiary affiliation, the parent company qualifies for certification as a small business enterprise; and (5) If a business enterprise seeking certification as a small business enterprise is affiliated only with one or more business enterprises that are in a different line of business, paragraph (4) of this subsection does not apply, and the business enterprise is eligible for certification as a small business enterprise if it meets the requirements paragraph (1) of this subsection. (c) Disadvantaged business enterprises: (1) A business enterprise is eligible for certification as a disadvantaged business enterprise if the business enterprise is owned, operated, and controlled by economically disadvantaged individuals; and a local business enterprise; (2) A business enterprise that is affiliated with another business enterprise through common ownership, management, or control is eligible for certification as a disadvantaged business enterprise if: (A) The business enterprise seeking certification as a disadvantaged business enterprise is a local business enterprise; (B) If a parent-subsidiary affiliation, both enterprises meet the requirements of paragraph (1) of this subsection; and (C) The business enterprise has an average annualized gross receipt totaling $ 75,000,000 or less. (d) Resident-owned business - A business enterprise is eligible for certification as a resident-owned business if it meets the definition of resident-owned business under section 1270(12). (e) Longtime resident businesses - A business enterprise is eligible for certification as a longtime resident business if it meets the definition of longtime resident business under section 1270(11). (f) Veteran-owned business enterprises - A business enterprise is eligible for certification as a veteran- owned business enterprise if the business enterprise: (1) Meets the definition of a small business enterprise as described in subsection (b) of this section; (2) Is not less than 51% owned and operated by one or more veterans, as defined in 38 U.S.C. §101(2); (3) In the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more veterans; and (4) One or more veterans control the management and daily operations. (g) Local manufacturing business enterprises - A business enterprise is eligible for certification as a local manufacturing business enterprise if the business enterprise: (1) Meets the definition of a local business enterprise as described in subsection (a) of this section; (2) Makes a product through a process involving raw materials, components, or assemblies, usually on a large scale, with different operations divided among different workers; (3) Has an annual revenue of $2,000,000 in the manufactured product; and (4) Has its principal location of manufacturing in the Virgin Islands. (h) Joint venture business enterprises- (1) A business enterprise is eligible for certification as a joint venture business enterprise if the joint venture has a member that owns a majority interest or minority interest in the joint venture business enterprise. The Chief Executive Officer shall consider the defined contributions and defined benefits provided by each member of the joint venture, which must demonstrate by the following information: (A) Organizational documents of the joint venture, including the joint venture agreement, the operating agreement, and any other agreement between or among the members; (B) Documentation of the financial contribution of each member, including access to bank records and organizational resolutions and agreements; and (C) Documentation that decisions concerning the affairs of the business require the consent of those members, with voting rights, holding at least a majority interest in the business; (2) For purposes of this subsection- (A) "Majority interest" means: (i) More than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise, or more than 50% of the total value of all the joint venture business enterprise; (ii) A financial contribution to the enterprise of more than 50%; and (iii) More than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise. (B) "Minority interest" means: (i) Less than 50% of the total combined voting power of all classes of stock of the joint venture business enterprise, or less than 50% of the total value of all of the joint venture business enterprise; (ii) A financial contribution to the enterprise of less than 50%; and (iii) Less than 50% of the total interest in the capital, profits, and loss, or beneficial interest in the joint venture business enterprise. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 214-218.

Violation (a) Each department, agency, and authority including an agency that contracts or procures in whole or in part through the Department of Property and Procurement, shall exercise its contracting and procurement authority so as to meet, on an annual basis, the goal of procuring and contracting 35% of the dollar volume of its goods and services, including construction goods and services, to small business and disadvantaged business enterprises. (b) The dollar volume referenced in subsection (a) of this section is based on the expendable budget of the agency. (c) Bid and proposal preferences. In evaluating bids or proposals, the Department and all other agencies shall award preferences as follows: (1) In the case of proposals, points must be granted as follows: (A) Three points for a small business enterprise; (B) Five points for a resident-owned business enterprise; (C) Five points for a longtime resident business enterprise; (D) Two points for a local business enterprise; (E) Two points for a local business enterprise, with its principal office located in an enterprise zone established pursuant to title 29 Virgin Islands Code, chapter 19; (F) Two points for a disadvantaged business enterprise; (G) Two points for a veteran-owned business enterprise; and (H) Two points for a local manufacturing business enterprise. (2) With respect to bids, a percentage reduction in price must be granted as follows: (A) Three % for a small business enterprise; (B) Five % for a resident-owned business; (C) Ten % for a longtime resident business; (D) Two % for a local business enterprise; (E) Two % for a local business enterprise with its principal office located in an enterprise zone established pursuant to 29 V.I.C. § 1011; and (F) Two % for a disadvantaged business enterprise. (d) A certified business enterprise is entitled to all of the preferences provided in this section but may not be granted a preference of more than 12 points or a reduction in price of more than 12%. (e) Mandatory set-asides of small contracts for small business enterprises. Except as provided in subsection (f), each agency shall set aside every contract or procurement of $100,000 or less for small business enterprises; but an agency is not required to set aside a contract or procurement if the agency determines in writing that there are not at least 2 responsible certified business enterprises that can provide the services or goods that are the subject of the contract. (f) An agency may refuse to award a contract or procurement set aside under this subsection, and may thereafter issue the contract or procurement in the pursuant to applicable provisions of 31 V.I.C., chapter 23, if the agency determines in writing that the bids for the contract or procurement set aside for a small business enterprise are believed to be 15% or more above the likely price on the open market. (g) Performance and subcontracting requirements for construction and non-construction contracts; subcontracting plans. All construction contracts in excess of $250,000 must include the following requirements: (1) At least 35% of the dollar volume must be subcontracted to small business enterprises; but the costs of materials, goods, and supplies may not be counted towards the 35% subcontracting requirement, unless the materials, goods, and supplies are purchased from small business enterprises; or (2) If there are insufficient qualified small business enterprises to fulfill completely the requirement of paragraph (1) of this subsection, then the subcontracting requirement may be satisfied by subcontracting 35% of the dollar volume to any certified business enterprises, but all reasonable efforts must be made to ensure that qualified small business enterprises are significant participants in the overall subcontracting work. (3) All non-construction contracts in excess of $250,000, unless a waiver has been approved by the Commissioner of the Department of Property and Procurement must include the following requirements: (A) At least 35% of the dollar volume must be subcontracted to small business enterprises; but the costs of materials, goods, and supplies may not be counted towards the 35% subcontracting requirement unless the materials, goods, and supplies are purchased from small businesses or small business enterprises; or (B) If there are insufficient qualified small business enterprises to fulfill completely the requirement of subparagraph (A) of this paragraph, then the subcontracting requirement may be satisfied by subcontracting 20% of the dollar volume to any certified business enterprises; if all reasonable efforts are made to ensure that qualified small business enterprises are significant participants in the overall subcontracting work. (4) For the purposes of this section, a business enterprise certified as a small business enterprise, local business enterprise, or disadvantaged business enterprise is not required to comply with the limitations set forth in paragraph (1) of this subsection. (h) (1) (A) Each construction contract for which a small business or a certified business enterprise is selected as a prime contractor and is granted points or a price reduction under this section or is selected through a set-aside program under this subchapter must include a requirement that the business perform at least 20% of the contracting effort, excluding the cost of materials, goods, and supplies, with its own organization and resources and, if it subcontracts, 20% of the subcontracted effort, excluding the cost of materials, goods, and supplies, is with certified business enterprises. (B) If the total of the contracting effort, excluding the cost of materials, good, and supplies, proposed to be performed by small business or certified business enterprises is less than the amount required by subparagraph (A), then the business enterprise shall not be eligible to receive preference points or price reductions for a period of not less than two years. (2) Each construction contract for which a joint venture is selected as a prime contractor and is granted points or a price reduction pursuant to subsection (e) of this section or is selected through a set-aside program under this subchapter must include a requirement that the certified business enterprise perform at least 50% of the contracting effort, excluding the cost of materials, goods, and supplies, with its own organization and resources and, if the joint venture subcontracts, 35% of the subcontracted effort, excluding the cost of materials, goods, and supplies, must be with certified business enterprises. (3) If the total of the contracting effort, excluding the cost of materials, goods, and supplies, proposed to be performed by certified business enterprises is less than the amount required by subparagraph (A) of this paragraph, then the business enterprise is eligible to receive preference points or price reductions for a period of not less than two years. (i) Each construction contract of $1,000,000 or less for which a certified business enterprise is selected as a prime contractor and is granted points or a price reduction or is selected through a set-aside program under this subchapter, must include a requirement that the business enterprise perform at least 50% of the on-site work with its own work force. (j) Bids or proposals responding to a solicitation, including an open market solicitation, must be considered nonresponsive and must be rejected if the law requires subcontracting and the prime contractor fails to submit a subcontracting plan as part of its bid or proposal. A certified business enterprise subcontracting plan must specify the following: (1) The name and address of the subcontractor; (2) Whether the subcontractor is currently certified as a certified business enterprise; (3) The scope of work to be performed by the subcontractor; and (4) The price to be paid by the contractor to the subcontractor. (k) A prime contractor may not amend the subcontracting plan filed as part of its bid or proposal except with the consent of the Commissioner of Property and Procurement. Any reduction in the dollar volume of the subcontracted portion resulting from such an amendment of the plan inures to the benefit of the Government. (l) Multiyear contracts or extended contracts in which the options or extensions exceed $1,000,000 in value which are not in compliance with this subchapter at the time of the contemplated exercise of the option or extension may not be renewed or extended, and any such option or extension is void. (m) The Commissioner of Property and Procurement may waive the subcontracting requirements of this section for good cause shown. (n) A prime contractor shall submit to the Commissioner of Property and Procurement copies of the executed contracts with the subcontracts identified in the subcontracting plan. Failure to submit copies of the executed contracts renders the underlying contract voidable by the Government. (1) There is a rebuttable presumption that a contractor willfully breached a subcontracting plan for utilization of certified business enterprises in the performance of a contract, if the contractor: (A) Fails to submit any required subcontracting plan monitoring or compliance report; (B) Submits a monitoring or compliance report containing a false statement; or (C) Fails to disclose required information. (2) The presumption that a contractor willfully breached a subcontracting plan for utilization of certified business enterprises may be rebutted with a showing, by clear and convincing evidence, of full compliance with the requirements set forth in the subcontracting plan for utilization of certified business enterprises. (o) A contractor that is found to have willfully breached a subcontracting plan for utilization of certified business enterprises is subject to the imposition of civil penalties, including revocation of certification and monetary fines of $15,000 or 5% of the total amount of the work that the contractor was to subcontract to certified business enterprises, whichever is greater, for each breach. After notice and opportunity for hearing, as provided by regulations promulgated pursuant to 3 V.I.C., chapter 35, the Chief Executive Officer may assess the penalty established in this paragraph. Fines assessed under this subsection must be covered into the SBDA Managerial and Technical Assistance Fund established in section 1258a of subchapter I. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 218-222.

(a) Each agency shall submit a quarterly report to the Chief Executive Officer and to the Commissioner of the Department of Property and Procurement no later than 30 days after the end of each quarter, except for the fourth quarter report. The fourth quarter and annual report must be submitted together. When submitting a quarterly report, each agency shall list each expenditure as it appears in the general ledger from the expendable budget of the agency during the quarter, which must include: (1) The name of the vendor from which the goods or services were purchased; (2) The vendor identification number as it appears in the general ledger; (3) A description of the goods or services; (4) Whether the vendor was a certified small business enterprise; (5) The funding source for the expenditure; (6) The date of the expenditure; (7) The dollar amount of the expenditure; and (8) In the case of a vendor that is a certified business enterprise, the percentage of the amount from paragraph (7) of this subsection that is of the agency's total expenditure on all certified business enterprises. (b) Each agency shall submit to the Chief Executive Officer and the Commissioner of the Department of Property and Procurement, no later than 30 days after the issuance of the Comprehensive Annual Financial Report, an annual report listing each expenditure as it appears in the general ledger from the expendable budget of the agency during the fiscal year which must include: (1) The information required to be included in the quarterly reports, with calculations for the fiscal year; (2) A description of the activities the agency engaged in, including the programs required subchapter to achieve the goals set forth in this subchapter; and (3) A description of any changes the agency intends to make during the succeeding fiscal year to the activities it engages in to achieve the goals set forth in this subchapter. (c) The Chief Executive Officer shall monitor agency compliance with the reporting requirements of this section. (d) The Chief Executive Officer shall review the annual report of each agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in this subchapter. The Chief Executive Officer shall make recommendations on activities the agency must engage in to meet or exceed the goals set forth in this subchapter. The Chief Executive Officer shall submit the recommendations to the agency, and the Department of Property and Procurement no later than 90 days after the agency's annual report submission. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 222, 223.

(a) The Small Business Development Agency shall provide the following services to certified business enterprises: (1) Specialized programs to assist certified business enterprises in securing capital and repairing damaged credit; (2) Informational seminars on securing credit and loans; and (3) Access to non-traditional financing sources, as well as traditional lending sources. (b) The Small Business Development Agency shall: (1) Develop a catalog of on-line survival and growth tools and resources that certified business enterprises may access through the Internet or other organizations; (2) Enter into a memorandum of understanding with a third-party vendor to provide expert consulting and education to assist certified businesses enterprises at risk of failure, including certified business enterprises that are considering filing for bankruptcy; (3) Develop a formal listing of financing options for business enterprises; (4) Deliver services that assist workers who become unemployed due to economic fluctuations to begin new businesses; (5) Enter into a memorandum of understanding with a third-party vendor to provide one-on-one counseling with potential borrowers to improve financial presentations to lenders; (6) Identify contracts that are suitable for certified business enterprises; (7) Assist certified business enterprises in identifying and preparing for business opportunities made available under federal and territorial grant and other financial assistance programs through informational presentations and the dissemination of information; and (8) Provide technical assistance regarding the territorial and federal procurement processes, including assisting certified business enterprises to comply with territorial and federal regulations and bonding requirements. (c) The Department of Property & Procurement shall: (1) provide access, to include rental and sale, and manage the distribution of excess surplus, and expired property owned by the Virgin Islands Government to businesses once they have been certified under the provisions of section 1270c. (2) not provide items that are classified as historic according to the Virgin Islands Historic Preservation Officer. (d) The Commissioner of the Department of Property & Procurement has authority on pricing of rental and sale of Virgin Islands Government property. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 223, 224.

(a) The Small Business Development Agency shall maintain a website or web portal that provides at a minimum a directory of businesses certified under the Small, Local, and Disadvantaged Business Enterprise Program, a certification application that can be accessed and printed from the portal or website, a list of Small, Local, and Disadvantage Business Enterprise opportunities, and such other information as the Chief Executive Officer may provide. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 224.

(a) Whenever the Chief Executive Officer has a reason to believe that any contractor or subcontractor awarded a state set-aside contract has willfully violated any provision of this subchapter, the Chief Executive Officer shall send a notice to such contractor or subcontractor by certified mail, return receipt requested. The notice must include: (1) A reference to the provisions alleged to be violated; (2) A short and plain statement of the matter asserted that constitute a violation; (3) The maximum civil penalty that may be imposed for such violation; (4) The time and place for the hearing.; and (5) A statement that the person charged with a violation may be represented by counsel. (b) The hearing must be set for a date not earlier than 14 days nor later than 30 days after the notice is mailed. (c) The Economic Development Authority shall hold a hearing on the violation If, after the hearing, the Chief Executive Officer finds that the contractor or subcontractor has willfully violated any provision of this subchapter, the Chief Executive Officer shall suspend all set-aside contract payments to the contractor or subcontractor and may order that a civil penalty not exceeding $10,000 per violation be imposed on the contractor or subcontractor. If the contractor or subcontractor fails to appear for the hearing or fails to pay the civil penalty, the Attorney General may bring an action to enforce the assessment of civil penalty or enforce any order issued by the Chief Executive Officer. History: Added Sept. 25, 2020, No. 8387, § 3, Sess. L. 2020, p. 224, 225.

This subchapter shall be known and may be cited as the Small Business Incubators Act. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 217.

The following words and phrases when used in this subchapter have the meanings given to them in this section unless the context clearly indicates otherwise: (a) "Board" means the Loan Policy Board of the Virgin Islands Small Business Development Agency established in section 1253(d) of subchapter I of this chapter. (b) "Incubator" means a facility in which small units of space may be leased by a tenant and in which management maintains or provides access to business development services for use by tenants and technical assistance. (c) "Local sponsor" or "Sponsor" means an organization that enters into a written agreement with the Board to establish, operate and administer a small business incubator facility or to provide funding to an organization that operates such a facility, including and agency or instrumentality of the Government of the Virgin Islands, including the Economic Development Authority, or any private nonprofit or for-profit organization approved by the Board. (d) "Program" means the Small Business Incubators Program established in section (e) "Tenant" means a sole proprietorship, business partnership or corporation operating a business for profit or, if permitted by this subchapter not for profit, and leasing or otherwise occupying space in an incubator. (f) "Small Business Incubator" means an economic development tool designed to accelerate the growth and success of entrepreneurial companies through an array of business support services and resources with the primary goal of producing successful firms that will graduate from the program, move into the community and leave the program as self-sustaining companies. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, pp. 217-218.

There is established under the direction of the Virgin Islands Small Business Development Agency a grant, loan, loan guarantee and technical assistance program for the establishment, operation and administration of small business incubators, to be known as the Small Business Incubators Program. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 218.

(a) Application. A local sponsor may submit an application to the Board to obtain a grant, loan or loan guarantee to establish an incubator. Each application shall: (1) Demonstrate that: (A) a facility exists that can be transformed into an incubator at a specified cost; or (B) in the case of new and expansion construction, appropriate existing facilities are not available within the geographic area and an incubator facility will be constructed or expanded at a specified cost. (2) Demonstrate the ability to directly provide or arrange for the provision of business development services for tenants of the incubator. These services must include, but not be limited to, financial consulting assistance, management and marketing assistance and physical services. (3) Demonstrate a potential for sustained use of the incubator facility by eligible tenants, through a feasibility study or sound business plan. (4) Demonstrate the ability to manage and operate the incubator facility in accordance with criteria determined by the Board. (5) Include other information as the Board may require through rules or regulations. (b) Review of application. The Board shall review and accept applications based on the following criteria: (1) Ability of the local sponsor to carry out the provisions of section 1275 of this subchapter; (2) Economic impact of the incubator on the community; (3) Conformance with territorial-wide and island economic development plans if such exist; (4) Location of the incubator, in order to encourage geographic distribution of incubators across the Territory; and (5) Such other criteria as may be established by the board through rules or regulations. (c) Grant and loan conditions. (1) Grants and loans awarded or guaranteed may be used only for (A) feasibility studies and business plans, (B) the acquisition and leasing of land and buildings, (C) the construction, rehabilitation and expansion of buildings or other facilities, and (D) the purchase of equipment and furnishings that are necessary for the establishment and operation of the incubator. (2) With the exception of feasibility studies and business plans, grants, loans and loan guarantees may not be the sole source of funds or total eligible project costs. The maximum grant amount awarded in any project may not exceed $250,000. Grants may be provided only to projects located in areas designated as distressed under the Enterprise Zone Program Act of title 29 Enterprise Zone Program Actr 19. (3) Funds loaned must be secured by lien positions on collateral at the highest level of priority which can accommodate the borrower's ability to raise sufficient debt and equity capital. When the obligation of a local sponsor is guaranteed, the financial institution holding the obligation shall be required to adequately secure the obligation. (4) Grants, loans and loan guarantees for an incubator in which the facility is currently leased may only be made if the applicant intends to buy the facility. These loans must be secured by a leasehold mortgage. (5) Payment of interest and principal on loans may be deferred at the discretion of the Board. (6) Funds may be loaned for a maximum of ten years or the useful life of the property, as established by the United States Department of Treasury, whichever is greater. (d) Receipt of grants and economic development. The Board shall: (1) Develop the incubators, criteria for receipt of grant funds, including criteria related to organizational capacity, community need, and the availability of other economic development; resources; (2) Accept and receive grants, gifts, and pledges of funds for the support of the Program, which shall be deposited in the Small Business Incubator Fund established in section 1273. (3) Integrate the promotion of small business incubators as economic development tools in its strategic plan. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, pp. 218-220.

A local sponsor, or the organization receiving assistance through the local sponsor, has the following responsibilities and duties in establishing and operating an incubator with assistance from the Program: (a) Secure title on the facility or a lease with the intent to secure title to the facility. (b) Manage the physical development of the incubator facility, including the provision of common conference or meeting space. (c) Furnish and equip the facility to provide business services to the tenants. (d) Market the facility and secure eligible tenants. (e) Provide financial consulting, marketing and management assistance services or arrange for the provision of these services for tenants of the incubator, including assistance in accessing private financial markets. (f) Set rental and service fees. (g) Encourage the sharing of ideas between tenants and otherwise aid the tenants in an innovative manner while they are within the incubator. (h) Establish policies and eligibility criteria of tenants into the incubator. (i) Establish an advisory committee to assist in the performance of these functions. (j) establish a graduation plan. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, pp. 220, 221.

The Board shall: (a) adopt such rules, statements of policy, procedures, forms and guidelines as may be necessary for the implementation of this subchapter, including the encouragement of incubators in economically distressed areas such as territorially and federally designated enterprise zones; (b) Make loans and loan guarantees or grants or a combination of loans and grants to local sponsors for incubators and award seed capital challenge grants and, in the sole discretion of the board, provide for the conversion of any liens issued on or after November 1, 1985, into grants or into a combination of grants and loans. (c) Ensure that local sponsors receiving loans or loan guarantees and recipients of grants meet the conditions of this subchapter. (d) Receive and evaluate annual reports from local sponsors. The annual reports must include, but not be limited to, a financial statement for the incubator, evidence that all tenants in the facility are eligible under the terms of the legislation and a list of companies in the incubator. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 221.

On or before March 1 of each year, the Board shall submit a report to the President of the Legislature which must include, but not be limited to: (1) The number of applications for incubators submitted to the Board; (2) The number of applications for incubators approved by the Board; (3) The number of incubators established through this program; (4) The number of tenants occupying each incubator; (5) The number of jobs provided by each incubator and tenants of each incubator; (6) The occupancy rate of each incubator; (7) Growth in employment by client companies during incubator stay; (8) Gross revenues of incubator companies aggregated across all companies in the incubator; (9) Gross revenues of incubator companies aggregated across all companies in the incubator over a number of years; (10) Growth in gross revenue of each client company during an incubator stay; (11) The average wage of each employee of each client company during the incubator stay; (12) The growth in the total tax base that the incubator, its tenants and its graduates represent; and (13) The number of companies still operating in the Territory after leaving incubators and the number of jobs they have provided. The Board shall attempt to identify the reasons why any companies have left the Territory after starting in an incubator. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 222.

No loan or loan guarantee may be made to a small business or local sponsor unless the business or local sponsor certifies to the Board, in a form satisfactory to the Board, that it shall not discriminate against any employee or against any applicant for employment because of race, religion, color, national origin, sex or age. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, pp. 222, 223.

Nothing in this subchapter shall be construed to limit incubators to government-funded entities. Private or non-profit incubators may be formed under the provisions of this Act. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 223.

(a) There is established in the Treasury of the Virgin Islands the Small Business Incubator Fund. (b) The Fund consists of grants, gifts, loans, appropriations made from time to time by the Legislature and all other moneys from the Small Business Incubators Program. History: Added Aug. 11, 2005, No. 6753, § 1, Sess. L. 2005, p. 223.

For the purposes of this chapter- (a) The term "person" means an individual, partnership, corporation, business trust, or any organized group of persons. (b) The term "motor vehicle" includes any passenger car, station wagon or truck. (c) The term "new motor vehicle" means a motor vehicle the equitable or legal title to which has never been transferred by a manufacturer distributor, or dealer to an ultimate purchaser. (d) The term "dealer" shall mean any person resident or located in the United States Virgin Islands engaged in the sale or the distribution of new motor vehicles to the ultimate purchaser. (e) The term "ultimate purchaser" means, with respect to any new automobile, the first person, other than a dealer purchasing in his capacity as a dealer, who in good faith purchases such new motor vehicles for purposes other than resale. History: Added Jan. 19, 1971, No. 2923, § 7, Sess. L. 1970, p. 408.

(a) Every dealer of new motor vehicles sold or distributed in the United States Virgin Islands shall securely affix to the windshield or in any other visible place on each new motor vehicle a label on which such dealer shall endorse clearly, distinctly and legibly true and correct entries disclosing the following information concerning each new motor vehicle- (1) Name of the dealer, location of place of business, and the date on which the motor vehicle entered the United States Virgin Islands; (2) The make, model, and serial or identification number or numbers of the motor vehicle; (3) The retail price of such motor vehicles suggested by the manufacturer, assembler, or exporter; (4) The retail delivered price suggested by the manufacturer, assembler, or importer for each accessory or item of optional equipment physically attached to such motor vehicle at the time of its delivery to the dealer, which is not included within the price of such motor vehicle as stated pursuant to subparagraph (3); (5) Ocean freight and any other transportation charges to the dealer; (6) Preparation and conditioning charges on the motor vehicle; (7) The amount of taxes paid by or to be collected by the dealer; (8) The total of the amounts specified pursuant to subparagraphs (3) through (7); (9) The amount that the ultimate purchaser will be required to pay in user taxes. History: Added Jan. 19, 1971, No. 2923, § 7, Sess. L. 1970, p. 409; amended Nov. 15, 1971, No. 3139, Sess. L. 1971, p. 377.

(a) Any dealer who willfully fails to affix to any new motor vehicles imported by him the label required by section 1302 of this chapter shall be fined not more than $1,000. Such failure with respect to each motor vehicle shall constitute a separate offense. (b) Any dealer who willfully fails to endorse clearly, distinctly and legibly any label as required by section 1302 of this chapter shall be fined not more than $1,000. Such failure or false endorsement with respect to each motor vehicle shall constitute a separate offense. (c) Any person who willfully removes, alters, or renders illegible any label affixed to a new motor vehicle pursuant to section 1302 of this chapter, or any endorsement thereon, prior to the time that such motor vehicle is delivered to the actual custody and possession of the ultimate purchaser of such new motor vehicle, shall be fined not more than $1,000 or imprisoned not more than one year, or both. Such removal, alteration, or rendering illegible with respect to each motor vehicle shall constitute a separate offense. History: Added Jan. 19, 1971, No. 2923, § 7, Sess. L. 1970, p. 409.

The purpose of this chapter shall be to provide, in conjunction, cooperation and coordination with chapter 9A of Title 12 of the Code, for the promotion and development of the commercial fishing industry in the United States Virgin Islands in order that untapped territorial marine life resources might be utilized to offer and provide a new means of livelihood to the people of the United States Virgin Islands in fishing and related industries. History: Added Nov. 21, 1972, No. 3330, § 1, Sess. L. 1972, p. 482.

In carrying out the purposes of this chapter in furtherance of the provisions of Title 3, section 335(a)(5) of the Code, the Department of Planning and Natural Resources, through its Commissioner, shall be responsible for the active and vigorous promotion of the commercial fishing industry, in all of its aspects, in the United States Virgin Islands. As used in this chapter the word "Commissioner" shall mean the Commissioner of the Department of Planning and Natural Resources or his authorized designee, agent or employee. History: Added Nov. 21, 1972, No. 3330, § 1, Sess. L. 1972, p. 482; amended May 17, 2006, No. 6836, §§ 6(a), (b), Sess. L. 2006, p. 69.

In carrying out the provisions of this chapter, the Commissioner shall have the following powers, duties and responsibilities: (a) Advise and assist fishermen: (1) in the establishment of fishing cooperatives and/or other types of business enterprises designed to permit maximum utilization of limited financial and other resources; (2) in the planning and establishment of facilities for boat landing, repair and maintenance; (3) in obtaining loans, grants or other means of financing their commercial fishing operations; and (4) regarding the availability and desirability of various types of fishing vessels, gear and other equipment. (b) Investigate and develop markets and potential markets for United States Virgin Islands fishery products. (c) Develop an efficient distribution system or systems for rapid transportation of fish products to markets outside the United States Virgin Islands. (d) Seek the cooperation of and work with those federal agencies responsible for the establishment of commercial shipping lanes in the territorial waters in order to minimize interference with local commercial fishing grounds and operations. (e) Conduct such studies regarding the economic potential of the commercial fishing and related industries in the United States Virgin Islands as are necessary to the proper planning, promotion and development of such industries. (f) With the aid and cooperation of other governmental departments and agencies, undertake the establishment of a statistical information service designed for use by the fisheries industry and fishermen. Such service shall include the gathering and compiling of the results of studies, reports and other data pertaining to fishing, fisheries management, conservation and other relevant subjects. Such statistical information shall be published from time to time and distributed to fishermen and other interested persons or entities. (g) Promulgate in the manner provided by section 304 of Title 12 of the Code, such rules and regulations as are necessary or desirable in the administration of the provisions of this chapter. (h) Receive and administer such federal grants and other financial aids as are available for the promotion and development of the commercial fishing industry. (i) Act as liaison between fishermen and officials or experts involved in scientific research and projects pertaining to fishing and the fishing industry in order that such fishermen may be well apprised of modern techniques and recent developments and facts having an effect upon their livelihood. (j) Maintain constant communication and collaborate with the fisheries advisory committees created by section 1404 of this chapter. (k) Undertake continuous review of the programs affecting fishermen and fisheries promotion instituted under the Department of Planning and Natural Resources, and make recommendations to the Governor and the Legislature regarding legislation which is necessary or desirable in enhancing the promotion of the commercial fishing industry. History: Added Nov. 21, 1972, No. 3330, § 1, Sess. L. 1972, p. 483; amended May 17, 2006, No. 6836, §§ 6(c), (d), Sess. L. 2006, pp. 69, 70.

There shall be two Fisheries Advisory Committees, one for St. Croix and one for St. Thomas-St. John, each to be composed of not more than 14 members appointed by the Commissioner of Conservation and Cultural Affairs. Each Committee shall include one representative each from the Department of Conservation and Cultural Affairs and Law; a marine scientist associated with an educational or scientific institution with facilities in the United States Virgin Islands; and six other members residing within the respective Committee's jurisdiction, representing a commercial fishermen's association, a sport fishing association and a diving association. Each committee shall collaborate with the Department of Conservation and Cultural Affairs in the drafting and administration of rules and regulations for the promotion and conservation of the fishery resources of the United States Virgin Islands under the provisions of this chapter and chapter 9A of Title 12 of the Code. The appointment of each member of each Committee shall be for the term of one year and until his successor is appointed. The appointing Commissioners shall designate the chairman of each Committee. History: Added Nov. 21, 1972, No. 3330, § 1, Sess. L. 1972, p. 484; amended May 17, 2006, No. 6836, §§ 6(e)-(g), Sess. L. 2006, p. 70.

(a) There is hereby created in the Economic Development Bank a fund which shall be known as the "Farmers and Fishermen's Revolving Loan Fund". The Fund shall be used (1) to provide small, short-term loans to farmers and fishermen in order to encourage and promote limited capital commercial farming and fishing operations in the United States Virgin Islands; and (2) to provide grants to farmers and fishermen who suffer loss or damage resulting from an emergency or major disaster as defined in Title 23, chapter 12 of this Code. (b) Except as provided in subsection (c) of this section loans made under this section shall not exceed $50,000 to any individual. Interest on loans under this section may not exceed 4 percent per annum. Except as provided in subsection (c) of this section grants under this section may not exceed $1,000 to any individual. Application for a grant under this section shall be accompanied by a notarized statement of loss or damage. (c) Loans in amounts not to exceed $40,000 to any individual and grants in amounts not to exceed $20,000 to any individual may be made to fulltime farmers and fishermen to replace equipment used in their trade or business which is lost or damaged as a result of an emergency or major disaster as defined in Title 23, chapter 12 of this code. For the purposes of this subsection, "fulltime farmers and fishermen" are those who derive at least 55 percent of their annual gross income from farming or fishing. (d) The Board of Directors of the Economic Development Bank shall establish rules and regulations governing the eligibility of loan applicants, the security required and the terms of repayment for loans made from the Fund and for the award of grants from the Fund. History: Added Nov. 21, 1972, No. 3330, § 1, Sess. L. 1972, p. 484; amended Sept. 21, 1981, No. 4616, § 5, Sess. L. 1981, p. 124; Dec. 19, 1984, No. 5026, § 5, Sess. L. 1984, p. 405; Nov. 10, 1989, No. 5484, § 1(a), Sess. L. 1989, p. 150; Jan. 25, 1990, No. 5501, § 1, Sess. L. 1990, p. 11; Aug. 25, 1994, No. 6005, § 1, Sess. L. 1994, p. 138; Act May 8, 1995, No. 6070, § 11, Sess. L. 1995, p. 178; Sept. 9, 1996, No. 6117, §§ 10(a), (b), Sess. L. 1996, p. 93; Apr. 6, 1998, No. 6222, § 6, Sess. L. 1998, p. 233; Aug. 20, 2010, No. 7184, § 3, Sess. L. 2010, p. 121.

(a) The Board of Directors of the Economic Development Bank is hereby authorized to grant emergency loans from the Farmers and Fishermen's Revolving Loan Fund, pursuant to Title 11, section 1405, subsection (a), paragraph (2), to farmers and fishermen who suffer damage to, or loss of, their equipment from the effects of any hurricane or major storm. (b) Except as provided in subsection (c) of this section the emergency loans authorized in subsection (a) of this section shall not exceed $10,000 to any single applicant, and shall be in addition to any other loan outstanding at the time of application. (c) Notwithstanding the provisions of subsection (b) of this section, emergency loans in an amount not to exceed $40,000 may be granted to fulltime farmers and fishermen pursuant to subsection (a) of this section. For the purposes of this subsection, "fulltime farmers and fishermen" are those who derive at least 55 percent of their annual gross income from farming or fishing. (d) Applications for a loan under subsection (a) of this section shall be accompanied by a notarized statement of loss or damage. All rules and regulations currently in force as to security and terms of repayment for loans shall apply to loans granted pursuant to this section. History: Added Oct. 21, 1988, No. 5369, § 12(a), Sess. L. 1988, p. 259; amended Nov. 10, 1989, No. 5484, § 1(b), Sess. L. 1989, p. 150; Jan. 25, 1990, No. 5501, § 2, Sess. L. 1990, p. 11; Apr. 6, 1998, No. 6222, § 7, Sess. L. 1998, p. 233.

History: Repealed. May 17, 2006, No. 6836, § 6(h), Sess. L. 2006, p. 70.

This chapter shall be known and may be cited as the "Virgin Islands Antimonopoly Law". History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 141.

The purpose of this chapter is to promote the unhampered growth of commerce and industry throughout the United States Virgin Islands by prohibiting restraints of trade which are secured through monopolistic or oligarchic practices and which act or tend to act to decrease competition between and among persons engaged in commerce and trade, whether in manufacturing, distribution, financing, and service industries or in related for-profit pursuits. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 141.

Every person shall be deemed to have committed a violation of this chapter who shall: (1) Make any contract with, or engage in any combination or conspiracy with, any other person who is, or but for a prior agreement would be, a competitor of such person: (a) for the purpose or with the effect of fixing, controlling, or maintaining the price or rate charged for any commodity sold or bought by the parties thereto, or the fee charged or paid for any service performed or received by the parties thereto; (b) fixing, controlling, maintaining, limiting, or discontinuing the production, manufacture, mining, sale or supply of any commodity, or the sale or supply of any service, for the purpose or with the effect stated in paragraph (a) of subsection (1); (c) allocating or dividing customers, territories, supplies, sales, or markets, functional or geographical, for any commodity or service; or (2) By contract, combination, or conspiracy with one or more other persons unreasonably restrain trade or commerce; or (3) Establish, maintain, use or attempt to acquire monopoly power over any substantial part of trade or commerce of the United States Virgin Islands for the purpose of excluding competition or of controlling, fixing, or maintaining prices in such trade or commerce; or (4) Lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, or services, whether patented or unpatented, for use, consumption, enjoyment, or resale, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies, or other commodity or service of a competitor or competitors of the lessor or seller, where the effect of such lease, sale or contract for such sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce; or (5) It shall be unlawful for any person, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade, quality and quantity where such commodities are sold for use, consumption, or resale in the United States Virgin Islands, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce in the United States Virgin Islands, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 142.

As used in this chapter, unless the context otherwise requires: "Trade or commerce" includes all economic activity involving or relating to any commodity or service. "Commodity" shall mean any kind of real or personal property. "Service" shall mean any activity, not covered by the definition of "Commodity", which is performed in whole or in part for the purposes of financial gain. "Service" shall not be deemed to include labor which is performed by natural persons as employees of others. "Person" shall mean any natural person, or any corporation, partnership, or association of persons. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 143.

No provisions of this chapter shall be construed to make illegal: (1) the activities of any labor organization or of individual members thereof which are directed solely to labor objectives which are legitimate under the laws of either the United States Virgin Islands or the United States; (2) the activities of any cooperative organization, whether incorporated or unincorporated, or of individual members thereof, which are directed solely to objectives of such cooperative organizations which are legitimate under the laws of either the United States Virgin Islands or the United States; (3) the activities of any public utility as defined in section 1 of Title 30 of this Code to the extent that such activities are subject to the jurisdiction of the Public Services Commission; (4) the activities (including, but not limited to), the making of or participating in joint underwriting or joint reinsurance arrangement) of any insurer, insurance agent, insurance broker, independent insurance adjuster or rating organization to the extent that such activities are subject to regulation by the Insurance Commissioner, or are permitted or are authorized by Title 22 of this Code or any other law of the United States Virgin Islands; (5) the religious and charitable activities of any not-for-profit corporation, trust or organization established exclusively for religious or charitable purposes, or for both purposes; (6) the activities engaged in by securities dealers who are (i) members of the National Association of Securities Dealers or (ii) members of any National Securities Exchange registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, in the course of their business of offering, selling, buying and selling, or otherwise trading in or underwriting securities, as agent, broker, or principal, and activities of any National Securities Exchange so registered, including the establishment of commission rates and schedules of charges; (7) the activities of any board of trade designated as a "contract market" by the Secretary of Agriculture of the United States pursuant to section 5 of the Commodity Exchange Act, as amended; (8) the activities of any state or national bank to the extent that such activities are regulated or supervised by officers of the state or federal government under the banking laws of the United States Virgin Islands or the United States; (9) the activities of any territorial or federal savings and loan association to the extent that such activities are regulated or supervised by officers of the territory or federal government under the savings and loan laws of the United States Virgin Islands or the United States; (10) the activities of any bona fide not-for-profit association, society or board, of attorneys, practitioners of medicine, architects, engineers, land surveyors or real estate brokers licensed and regulated by an agency of the Government of the United States Virgin Islands, in recommending schedules of suggested fees, rates or commissions for use solely as guidelines in determining charges for professional and technical services; or (11) the establishment of formal agreements between small entrepreneurs engaged in the retail sale of the same or similar commodities for the purpose of bulk purchase of those commodities in order to meet in good faith, competition of businesses with substantially larger sales volumes. For purposes of this paragraph, the term "small entrepreneur" means a merchant whose gross receipts from all sources in any year cannot reasonably be expected to exceed $250,000 and who will not employ more than 12 persons. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 143.

Every person who shall willfully do any of the acts prohibited by subparagraphs (1) and (4) or section 1503 of this chapter shall be guilty of a misdemeanor and shall be punished by a fine of up to $50,000, or by imprisonment not to exceed six months, or both. (1) The Attorney General shall investigate suspected criminal violations of this chapter and shall commence and try all prosecutions under this chapter. Prosecutions under this chapter may be commenced by complaint, or information. With respect to the commencement and trial of such prosecutions, the Attorney General shall have all of the powers and duties vested by law in him with respect to criminal prosecutions generally. (2) A prosecution for any offense in violation of this section must be commenced within four years after the commission thereof. (3) The Attorney General shall not commence prosecutions under this chapter against any defendant who, at the time, is a defendant with regard to any current pending complaint, information or indictment filed by the United States for violation, or alleged violation, of the Federal Anti-Trust Statutes (including but not being limited to, Act of July 2, 1980, ch. 647, 26 U.S. Stat. 209, 15 U.S.C.A., secs.1 - 7; Act of Oct. 15, 1914, ch. 323, 38 U.S. Stat. 730, 15 U.S.C.A., secs.12 - 27, 44; Act of August 17, 1937, ch. 690, Title VIII, 50 U.S. Stat. 693, 15 U.S.C.A., sec.1; Act of July 7, 1955, ch. 281, 69 U.S. Stat. 282, 15 U.S.C.A., secs.1 - 3; Act of May 26, 1938, ch. 283, 52 U.S. Stat. 446, 15 U.S.C.A. sec.13 -C; and any similar Acts passed in the future) involving substantially the same subject matter. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 145.

The following civil actions and remedies are authorized under this chapter. (1) The Attorney General shall institute proceedings in the District Court to prevent and restrain violations of section 1503 of this chapter. In such a proceeding, the court shall determine whether a violation has been committed, and shall enter such judgment or decree as it considers necessary to remove the effects of any violation which it finds, and to prevent such violation from continuing or from being renewed in the future. The court, in its discretion, may exercise all equitable powers necessary for this purpose, including, but not limited to, injunction, divestiture of property, divorcement of business units, dissolution of domestic corporations or associations, and suspension or termination of the right of foreign corporations or associations to do business in the United States Virgin Islands. (2) Any person who has been injured in his business or property, or is threatened with such injury, by a violation of section 1503 of this chapter may maintain an action in the District Court for damages, or for an injunction, or both, against any person who has committed such violation. If, in an action for an injunction, the court issues an injunction, the complainant shall be awarded costs and reasonable attorney's fees. In an action for damages, if injury is found to be due to a violation of subparagraphs (1) and (4) of section 1503 of this chapter, the person injured shall be awarded three times the amount of actual damages resulting from that violation, together with costs and reasonable attorney's fees. If injury is found to be due to a violation of subparagraphs (2) or (3) of section 1503 of this chapter, the person injured shall recover the actual damages caused by the violation, together with costs and reasonable attorney's fees, and if it is shown that such violation was willful, the court may, in its discretion, increase the amount to be recovered as damages up to a total of three times the amount of actual damages. The Government of the United States Virgin Islands and the United States, shall be considered a person having standing to bring an action under this subparagraph. The Attorney General may bring an action on behalf of the Government of the United States Virgin Islands or any political subdivisions thereof to recover the damages provided for by this subsection, or by any other comparable provision of Federal law. Any action for damages be forever barred unless commenced within four years after the cause of action accrued; provided that, whenever any action is brought by the Attorney General for a violation of this chapter, the running of the foregoing statute of limitations, with respect to every private right of action for damages under the subsection which is based in whole or in part on any matter complained of in said action by the Attorney General, shall be suspended during the pendency thereof, and for one year thereafter. No cause of action barred under existing law on the effective date of this chapter shall be revived by this chapter. (3) Upon a finding that any domestic or foreign corporation organized or operating under the laws of the United States Virgin Islands has been engaged in conduct prohibited by section 1503 of this chapter, or the terms of any injunction issued under this chapter, the District Court may, upon petition of the Attorney General, order the revocation, forfeiture or suspension of the charter, franchise, certificate of authority or privileges of any corporation operating under the laws of the United States Virgin Islands, or the dissolution of any such corporation. (4) In lieu of any penalty otherwise prescribed for a violation of any provision of this chapter, and in addition to an action pursuant to subparagraph (1) of this section, the Attorney General may bring an action in the name of and on behalf of the people of the United States Virgin Islands against any person, trustee, director, manager or other officer or agent of a corporation, or against a corporation, domestic or foreign, to recover a penalty in a sum not to exceed $50,000 for the doing in the United States Virgin Islands of any act herein declared illegal. The action must be brought within four years after the commission of the act upon which it is based. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 145.

Personal service of any process in an action under this chapter may be made upon any person outside the United States Virgin Islands if such person has engaged in conduct in violation of this chapter in the United States Virgin Islands. Such persons shall be deemed to have thereby submitted themselves to the jurisdiction of the courts of the United States Virgin Islands within the meaning of this section. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 147.

Whenever it appears to the Attorney General that any person has engaged in, is engaging in, or is about to engage in any act or practice prohibited by this chapter, or that any person has assisted or participated in any agreement or combination of the nature described herein, he may, in his discretion, conduct an investigation as he deems necessary in connection with the matter and has the authority prior to the commencement of any civil or criminal action as provided for in this chapter to subpoena witnesses, compel their attendance, examine them under oath, or require the production of any books, documents, records, writings or tangible things hereafter referred to as "documentary material" which the Attorney General deems relevant or material to his investigation, for inspection, reproducing or copying under such terms and conditions as hereinafter set forth. Any subpoena issued by the Attorney General shall contain the following information: (1) The statute and section thereof, the alleged violation of which is under investigation and the general subject matter of the investigation. (2) The date and place at which time the person is required to appear or produce documentary material in his possession, custody or control in the office of the Attorney General. Said date shall not be less than 10 days from date of service of the subpoena. (3) Where documentary material is required to be produced, the same shall be described by class so as to clearly indicate the material demanded. The Attorney General is hereby authorized, and may so elect, to require the production, pursuant to this section, of documentary material prior to the taking of any testimony of the person subpoenaed, in which event, said documentary material shall be made available for inspection and copying during normal business hours at the principal place of business of the person served, or at such other time and place, as may be agreed upon by the person served and the Attorney General. When documentary material is demanded by subpoena, said subpoena shall not: (i) Contain any requirement which would be unreasonable or improper if contained in a subpoena duces tecum issued by a court of the United States Virgin Islands; or (ii) Require the disclosure of any documentary material which would be privileged, or which for any other reason would not be required by a subpoena duces tecum issued by a court of the United States Virgin Islands. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 147.

Service of a subpoena of the Attorney General as provided herein may be made by (a) delivery of a duly executed copy thereof to the person served, or if a person is not a natural person, to the principal place of business of the person to be served, or (b) mailing by certified mail, return receipt requested, a duly executed copy thereof addressed to the person to be served at his principal place of business in the United States Virgin Islands, or, if said person has no place of business in the United States Virgin Islands, to his principal office. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 148.

The examination of all witnesses under this section shall be conducted by the Attorney General or by an assistant attorney general designated by him before an officer authorized to administer oaths in the United States Virgin Islands. The testimony shall be taken stenographically or by a sound recording device and shall be transcribed. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 149.

All persons served with a subpoena by the Attorney General under this chapter shall be paid the same fees as paid witnesses in the District Court of the Virgin Islands. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 149.

In the event a witness served with a subpoena by the Attorney General under this chapter fails or refuses to obey same or produce documentary material as provided herein, or to give testimony, relevant or material, to the investigation being conducted, the Attorney General may petition the District Court for an order requiring said witness to attend and testify or produce the documentary material demanded; thereafter, any failure or refusal on the part of the witness to obey such order of court may be punishable by the court as a contempt thereof. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 149.

In any investigation brought by the Attorney General pursuant to this chapter, the Attorney General may grant immunity from prosecution to witnesses called upon to testify therein. No individual granted such immunity shall be excused from attending, testifying or producing documentary material, objects or tangible things in obedience to a subpoena or under order of the court on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to any penalty. No individual granted such immunity shall be criminally prosecuted or subjected to any criminal penalty under this chapter for or on account of any testimony given by him in an investigation brought by the Attorney General pursuant to this chapter; provided no individual so testifying shall be exempt from prosecution or punishment for perjury committed in so testifying. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 149.

Commerce No action under this chapter shall be barred on the grounds that the activities or conduct complained of in any way affects or involves interstate or foreign commerce. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 150.

Damages A final judgment or decree rendered in any civil or criminal proceeding brought by the Attorney General under this chapter to the effect that a defendant has violated this chapter shall be prima facie evidence against such defendant in any action for damages brought by any other party against such defendant under subparagraph (2) of section 1507 of this chapter, as to all matters respecting which said judgment or decree would be an estoppel as between the parties thereto; provided, that this section shall not apply to civil consent judgment or decrees entered before any testimony has been taken. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 150.

No contract, combination, conspiracy, or other act which violates this chapter shall constitute or be deemed a conspiracy at common law. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 150.

When the language of this chapter is the same or similar to the language of a Federal Antitrust Law, the District Court in constructing this chapter shall follow the construction given to the Federal Law by the Federal Courts. History: Added July 2, 1973, No. 3448, Sess. L. 1973, p. 150.

This chapter shall be known and may be cited as the "Uniform Foreign Money Claims Act". History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

In this chapter: (1) "Action" means a judicial proceeding or arbitration in which a money payment may be awarded or enforced in respect of a foreign money claim. (2) "Conversion date" means the banking day next before the date of which money is, in accordance with this chapter, (i) paid to a judgment creditor; or (ii) paid to the designated official enforcing a judgment on behalf of the judgment creditor; or (iii) used to effect a recoupment set-off of claims in different moneys in an action; (3) "Distribution proceeding" means a judicial or nonjudicial proceeding for an accounting, an assignment for the benefit of creditors, a foreclosure, for the liquidation or rehabilitation of a corporation or other entity, for the distribution of an estate, trust, or other fund in or against which a foreign-money claim is asserted. (4) "Foreign money" means money other than money of the United States of America. (5) "Foreign-money claim" means a claim upon an obligation to pay, or a claim for recovery of a loss, expressed in or measured by a foreign money. (6) "Money" means a medium of exchange for the payment of obligations or a store of value authorized or adopted by a government or by inter-governmental agreement. (7) "Money of the claim" means the money determined as proper by section 1534 of this title. (8) "Party" means an individual, a corporation, government or governmental subdivision or agency, business trust, partnership or association of two or more persons having a joint or common interest or any other legal or commercial entity asserting or defending against a foreign-money claim. (9) "Rate of exchange" means the rate at which the money of one country may be converted into money of another country in a free financial market convenient to or reasonably usable by the party obliged to pay or to state a rate of conversion. If separate exchange rates apply to different kinds of transactions or events, the term means the rate applicable to the particular transaction or event giving rise to the foreign-money claim. (10) "Spot rate" means the rate of exchange at which foreign money is sold by a bank or other dealer in foreign exchange for settlement by immediate payment, by charge to an account, or by an agreed delayed settlement not exceeding two days. "Bank-offered spot rate" means the rate of exchange at which a bank will issue its draft in the foreign money or will cause credit to become available in the foreign money on a next-day basis. (11) "State" means a state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or the United States Virgin Islands. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) The provisions of this chapter apply only to a foreign-money claim in an action or distribution proceeding. (b) The provisions of this chapter apply to foreign-money issues notwithstanding the law applicable under the conflict of laws rules of this territory to other issues in the action or distribution proceeding. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) The effect of provisions of this chapter may be varied by agreement of the parties made at any time before or after commencement of an action, distribution, or the entry of judgment. (b) The parties may agree upon the money to be used in a transaction giving rise to a foreign-money claim and may use different moneys for different aspects of the transaction. Stating the price in a foreign money or for a particular transaction does not require, of itself, the use of that money for other aspects of the transaction. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) Except as provided in subsection (b) hereof, the proper money of the claim is, as in each case may be appropriate, the money: (1) regularly used between the parties as a matter of usage or course of dealing; or (2) used at the time of a transaction in international trade, by trade usage or common practice for valuing or settling transactions in the particular commodity or service involved; or (3) in which the loss was ultimately felt or will be incurred by a party. (b) The money in which the parties have contracted that a payment be made is the proper money of the claim for that payment. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) If an amount contracted to be paid in a foreign money is measured by a specified amount of a different money, the amount to be paid is determined on the conversion date. (b) If an amount contracted to be paid in a foreign money is to be measured by a different money at the exchange rate prevailing on a date prior to default, that exchange rate applies only for payments made a reasonable time after default, not to exceed 30 days. Thereafter, conversion is made at the bank-offered spot rate on the conversion date. (c) A monetary claim is neither usurious nor unconscionable because the agreement on which it is based provides that the amount of the debtor's obligation to be paid in the debtor's money must, when received by the creditor, equal a specified amount of the foreign money of the country of the creditor. If, because of unexcused delay in payment of a judgment or award, the amount received by the creditor does not equal the amount of the foreign money specified in the agreement, the court or arbitrator, as the case may be, shall have jurisdiction to, and shall, amend the judgment or award accordingly. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) A claimant may assert a claim in a specified foreign money. If a foreign money is not asserted, the claimant makes a claim for a judgment in United States dollars. (b) An opposing party may allege and prove that the claim is, in whole or in part, for a different money than that asserted by the claimant. (c) Any party may assert a defense, set-off, recoupment, or counterclaim in any money without regard to the money of other claims. (d) The determination of the proper money of the claim is a question of law. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

Money Conversion: Form of Judgment (a) Except as provided in subsection (c) of this section, a judgment or arbitration award on a foreign-money claim must be stated in amount of the money of the claim. (b) The judgment or award is payable in that foreign money or, at the option of the debtor, in the amount of United States dollars which will purchase that foreign money on the conversion date at a bank-offered spot rate. (c) Assessed costs must be entered in United States dollars. (d) Each payment in United States dollars must be accepted and credited on the judgment or award in the amount of the foreign money that could be purchased by the dollars at a bank-offered spot rate of exchange at or near the close of business on the conversion date for that payment. (e) Judgments or awards made in an action on both (i) a defense, set-off, recoupment, or counterclaim and (ii) the adverse party's claim, must be netted by converting the money of the smaller into the money of the larger, and by subtracting the smaller from the larger, and must specify the rates of exchange used. (f) A judgment substantially in the following form complies with subsection (a) of this section: "IT IS ADJUDGED AND ORDERED, that Defendant (insert name) pay to plaintiff (insert name) the sum of (insert amount in the foreign money plus interest on that sum at the rate of (insert rate) percent a year or, at the option of the judgment debtor, the number of United States dollars as will purchase the (insert name of foreign money) with interest due, at a bank-offered spot rate at or near the close of business on the banking day next before the day of payment, together with assessed costs of (insert amount) United States dollars." (g) If a contract claim is of the type covered by section 1535(a) or (b) of this title, the judgment or award shall be entered for the amount of the money stated to measure the obligation to be paid in the money specified for payment or, at the option of the debtor, the number of United States dollars as will purchase the computed amount of the money of payment on the conversion date at a bank-offered spot rate. (h) A judgment shall be filed, docketed, recorded and indexed in foreign money in the same manner, and shall have the same effect as a lien, as other judgments. It may be discharged by payment. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

The rate of exchange prevailing at or near the closing of business on the day the proceeding is initiated shall govern all exchanges of foreign-money in a distribution proceeding. A foreign-money claimant in a distribution proceeding must assert its claim in the named foreign money and show the amount of United States dollars resulting from a conversion as of the date the proceeding was initiated. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) With respect to a foreign-money claim, recovery of pre-judgment interest and the rate of interest to be applied in the action or distribution proceeding are matters of the substantive law governing the right to recovery under the conflict of laws rules of this territory. (b) Notwithstanding subsection (a) of this section, an increase or decrease in the amount of pre-judgment interest otherwise payable may be made in a foreign-money judgment to the extent required by the law of this territory governing a failure to make or accept an offer of settlement or offer of judgment, or conduct by a party or its attorney causing undue delay or expense. (c) A judgment on a foreign-money claim bears interest at the same rate applicable to other judgments of this territory. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) Subject to subsections (b) and (c) of this section, if an action is brought to enforce a judgment of another jurisdiction expressed in a foreign money and the judgment is recognized in this territory as enforceable, the enforcing judgment must be entered as provided in section 1537 of this title whether or not the foreign judgment confers an option to pay in an equivalent amount of United States dollars. A satisfaction or partial payment made upon the foreign judgment, on proof thereof, must be credited against the amount of foreign money specified in the judgment, notwithstanding the entry of judgment in this territory. (b) Notwithstanding subsection (a) of this section, a foreign judgment may be filed, docketed or recorded in accordance with any statute of this territory providing a procedure for its recognition and enforcement. (c) A judgment entered on a foreign-money claim only in United States dollars in another state must be enforced in this territory in United States dollars only. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

Foreign-Money Claims For Limited Purposes (a) For the limited purpose of facilitating the enforcement of provisional remedies in an action, (i) the value in United States dollars of assets to be seized or restrained pursuant to a writ of attachment, garnishment, execution, or other legal process, (ii) the amount of United States dollars at issue for assessing costs, or (iii) the amount of United States dollars involved for a surety bond or other court-required undertaking shall be ascertained as provided in subsections (b) and (c) of this section. (b) The party seeking the process, costs, bond or other undertaking must compute the dollar amount of foreign money claimed from a bank-offered spot rate of exchange prevailing at or near the close of business on the banking day next preceding the filing of a request or application for the issuance of process or for the determination of costs, or an application for a bond or other court-required undertaking. (c) The party seeking the process, costs, bond, or other undertaking shall file with each request or application, an affidavit or certificate executed in good faith by its counsel or a bank officer, stating the market quotation used, how obtained, and setting forth the calculation. Affected court officials incur no liability, after a filing of the affidavit or certificate, for acting as if the judgment was in the amount of United States dollars stated in the affidavit or certificate. (d) Computations under this section are for the limited purposes of the section and do not affect computation of the United States dollar equivalent of the money of the judgment for payment purposes. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

(a) If, after an obligation is expressed or a loss is incurred in a foreign money, the country issuing or adopting that money substituted a new money in place of that money, the obligation or the loss is treated as if expressed or incurred in the new money at the rate of conversion the issuing country establishes for the payment of like obligations or losses denominated in the former money. (b) If substitution under subsection (a) of this section occurs after a judgment or award is entered on a foreign-money claim, the court or arbitrator, as the case may be, shall have jurisdiction to, and shall, amend the judgment or award by a like conversion of the former money. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

Unless displaced by particular provisions of this chapter, the principles of law and equity, including the law merchant, and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating causes, supplement its provisions. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

The provisions of this chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states and territories enacting it. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. History: Added June 2, 1992, No. 5785, § 1, Sess. L. 1992, p. 65.