IPI faces lease default for failing to remit $250,000 to DPL
The Department of Public Lands (DPL) has issued a notice of violation.
Northern Mariana Islands.- Imperial Pacific International (IPI) is facing a lease default after Teresita A. Santos, secretary at the Department of Public Lands (DPL), issued a notice of violation. The company failed to remit a required security deposit of US$250,000, among other alleged violations of the land lease agreement.
Despite the remittance of US$150,000 in lease rental to DPL, the company has failed to remedy violations as provided in DPL’s October 18 notice of default. According to the Saipan Tribune, IPI has been warned that if the listed violations were not fixed within 30 days, it would be placed in automatic default, and the DPL would be forced to take corrective action.
IPI’s lease rental amount due is US$179,761, which must be paid by May 1, 2023, to cover the lease rental period beginning May 1, 2023, through April 30, 2024.
Among the violations listed in the notice was IPI’s failure to submit a valid fire and damage insurance policy jointly in the names of IPI and DPL covering the full insurable value of all permanent improvements on the premises. The company also failed to submit a copy of its valid commercial general liability insurance policy for the premises and operation, with DPL and the CNMI government named as co-insured, with the required minimum coverage amounts.
In addition, IPI failed to submit copies of all licences, certificates, permits and other required authorisations, including a certificate of occupancy, a valid business licence and the most recently filed annual corporation reports.
