Title 11 — Finance and Taxation

A bank may maintain deposit accounts and pay interest on balances therein at rates which need not be uniform. The Board may by general regulations fix maximum rates of interest and prohibit the payment of interest on demand accounts. SOURCE: GC § 30030.

So long as the balance in any account subject to withdrawal by or upon the order of a depositor shall equal or exceed the amount of any item presented for payment, a bank may select from items which in the aggregate exceed the balance, the items to be paid in any order convenient…

A bank shall pay interest at a rate not less than that paid on regular passbook savings accounts as calculated by the individual banks on Guam on home mortgage escrow accounts. SOURCE: GC § 30030.1. Added by P.L. 15-093:1 (Jan. 17, 1980).

Nothing in any law of Guam shall in any manner whatsoever affect the validity of, or render void or voidable, the payment, certification, or acceptance of a check or other negotiable instrument or any other transaction by a bank because done or performed on any holiday or half-ho…

(a) A bank may operate a deposit account in the name of a minor or in the names of two or more persons, one or more of whom are minors, with the same effect upon its liability as if such minors were of full age. (b) Subject to such regulations as the Board may prescribe for the p…

(a) When a deposit has been made or shall hereafter be made, in any bank in the names of two persons, payable to either, or payable to either or survivor, such deposit, or any part thereof, or any interest or COL 2025-04-22 dividend thereon, may be paid to either of said persons,…

(a) Whenever any deposit shall be made in any bank by any person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to the bank; in the event of the death of the trustee, the same, or any par…

[Repealed.] SOURCE: GC § 30036. Repealed by P.L. 13-150:17 (June 30, 1976).

[Repealed.] SOURCE: GC § 30037. Repealed by P.L. 13-150:17 (June 30, 1976).

[Repealed.] SOURCE: GC § 30038. Repealed by P.L. 13-150:17 (June 30, 1976).

[Repealed.] SOURCE: GC § 30039. Repealed by P.L. 13-150:17 (June 30, 1976).

(a) When a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in such account, or the depositor’s passbook has been written up by the bank showing the condition of the depositor’s account and deli…

[Repealed.] SOURCE: GC § 30041. Repealed by P.L. 13-150:19 (June 30, 1976).

Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank to recognize said adverse claimant unless said adverse claimant shall also either procure a restraining order, injunction or other appro…

[Repealed.] SOURCE: GC § 30043. Repealed by P.L. 13-150:20 (June 30, 1976).

(a) A bank may continue to recognize the authority of an attorney authorized in writing to operate, in whole or in part, the account of a depositor, until it receives written notice of the revocation of his authority. (b) Written notice of the death or adjudication of incompetenc…

(a) Where no executor or administrator of a deceased depositor has qualified and given notice of his qualifications to the bank, it may in its discretion and at any time after 30 days from the death of the COL 2025-04-22 depositor pay out of all accounts maintained with it by him…

(a) Any bank may accept money for transmissions and may transmit money. (b) Any bank may buy and sell foreign exchange to the extent necessary to meet the needs of customers. SOURCE: GC § 30046.

(a) Savings Account. In the event there has been no activity of deposits or withdrawals, and no contact has been made by the account holder of a savings account with the bank for ten (10) years, a bank shall transfer the balance of such account to the Treasurer of Guam for the ac…

As used in this Subarticle: (a) “Lessee” means a person contracting with a lessor for the use of a safe deposit box. (b) “Lessor” means a bank, trust company, or subsidiary renting safe deposit facilities, and includes a safe deposit company organized and operating under the juri…

(a) Subject to such regulations as the Board may prescribe, a bank, trust company or safe deposit company may maintain and lease safe deposit boxes and may accept property or documents for safekeeping if, except in the case of night depositories, it issues a receipt therefor. (b)…

Where a safe deposit box is made available by a lessor to one or more persons acting as fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which such fiduciaries are acting, allow access thereto as follows: (a) By any one …

Where a lessor without knowledge of the death or of an adjudication of legal incompetence of the lessee, deals with his agent pursuant to a written power of attorney signed by such lessee, the transaction binds the lessee’s estate and the lessee. SOURCE: GC § 30103.

A bank may lease a safe deposit box to, and in connection therewith deal with, a minor with the same effect as if leasing to and dealing with a person of full legal capacity. SOURCE: GC § 30104.

A lessor shall permit the person named in a court order for the purpose, or if no order has been served upon the lessor, the spouse, a parent, an adult descendant or a person named as an executor in a copy of a purported will produced by him, to open and examine the contents of a…

(a) An adverse claim to the contents of a safe deposit box, or to property held in safekeeping, is not sufficient to require the lessor to deny access to its lessee unless: (1) The lessor is directed to do so by a court order issued in an action in which the lessee is served with…

(a) If the rental due on a safe deposit box has not been paid for one year, the lessor may send a notice by registered mail to the last known address of the lessee stating that the safe deposit box will be opened and its contents stored at the expense of the lessee unless payment…

(a) It shall be a criminal offense against this Title for a bank to act as fiduciary unless it is authorized by its charter to exercise trust powers and has qualified by depositing with the Commissioner evidences of indebtedness acceptable to him which: (1) Are payable to bearer …

No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary, unless the instrument creating a fiduciary position expressly otherwise provides. SOURCE: GC § 30201.

Nominee for Securities. (a) A bank holding any asset as a fiduciary shall: (1) Segregate all such assets from any other assets of the bank and from the assets of other trusts, except as may be expressly provided otherwise by law or by the writing creating the trust. (2) Record su…

A bank acting as fiduciary shall have the same investment powers as an individual fiduciary under like circumstances. SOURCE: GC § 30203.

A bank or trust company may create one or more common trust funds in which individuals may participate and invest. SOURCE: GC § 30204. SUBARTICLE D RESERVES, LOANS, INVESTMENTS AND MISCELLANEOUS

(a) A bank whether or not a member of the Federal Reserve System, shall maintain such reserves against deposits as may be established by the Federal Reserve Act or by the Board of Governors of the Federal Reserve System. (b) The reserve fund shall consist of legal tender on hand …

(a) A commercial bank may lend at a lawful rate of interest on the security of the personal obligation of the borrower. (b) A commercial bank may lend on the security of personal property but shall not make any loan on the security of its own stock or of its obligations subordina…

(a) In addition to other investments expressly authorized by this Title a territorial bank may purchase (or discount): (1) Obligations which satisfy the requirements of this Title for loans and are acquired in full. (2) Obligations of the United States, or states of the United St…

(a) A commercial bank may accept: (1) A draft which has not more than 6 months sight to run, exclusive of days of grace, and is drawn to finance the purchase of goods with maturity in accordance with the original terms of purchase, or is secured by shipping documents transferring…

(a) A territorial bank shall not extend credit directly by means of discount of notes, issuance of letters of credit, acceptance of drafts or otherwise, or purchase any bond, note, bill of exchange or similar evidence of indebtedness, when by reason of such extension of credit or…

A bank may take property of any kind to satisfy or protect a loan previously made in good faith and in the ordinary course of business. Property acquired in satisfaction of a loan shall be held subject to the following limitations: (a) Stock shall be sold within 6 months or such …

(a) A bank may acquire real estate and equipment and improve real estate to be used in the transaction of its business on Guam and may rent any space so acquired in a building in excess of its present actual need; provided that unless a larger investment is authorized by the Comm…

A bank may sell any asset in the ordinary course of business, or, with the approval of the Board, in any other circumstance, but the sale of all or substantially all of the assets of a bank or of a department thereof is governed by § 106179. SOURCE: GC § 30307.

A bank may borrow money and issue evidence of indebtedness for a loan for temporary purposes in an amount not exceeding its capital and surplus or in such larger amount or for such other purposes as the Commissioner approves. Debentures issued by a territorial bank may not be ret…

A bank may pledge its assets to: (a) Enable it to act as agent for the sale of obligations of the United States. (b) Secure borrowed funds. (c) Secure deposits when the depositor is required to obtain such security by the laws of the United States, the terms of any interstate com…

(a) A bank may assume secondary liability as an indorser of a negotiable or non-negotiable instrument which it owns or has received for collection or that of the guarantor of the genuineness of a signature. COL 2025-04-22 (b) A guaranty of the signature means only that (1) the si…

As used in Subarticle D herein, the noun capital is defined as capital plus surplus plus undivided profit plus current earnings plus reserve for loan losses. SOURCE: GC § 30311, as added by P.L. 18-049:10 (Dec. 30, 1986). SUBARTICLE E AUTHORIZED BANKING PRACTICES

(a) A Territorial Bank insured by the Federal Deposit Insurance Corporation (FDIC) is authorized to engage directly or through a subsidiary in any banking activity, any activity closely related to banking and any nonbank activity to do any act and to own, possess and carry as ass…

(a) A territorial bank may be organized to exercise the powers provided in this Title and such general corporate powers as are appropriate to its purpose. (b) A territorial bank shall, without specific mention thereof in its charter, have all the powers conferred by this Title an…

No out-of-state bank shall transact business in Guam. This Section shall not be deemed to prohibit: (a) Any out-of-state bank from making loans secured by liens on real property located in Guam; (b) Any out-of-state bank from being a resulting bank in an interstate merger transac…

A locally chartered bank or territorial bank operating under this Title shall, in addition to all specific powers conferred by this Title, have the following power: To exercise, notwithstanding the provisions of § 106151 of Subarticle C, Title 11, Guam Code Annotated Code and § 2…

(a) A bank shall have such capital structure as the Board shall deem adequate but not less than the following: (1) Capital consisting of common stock as follows: Paid-up-in-cash of not less than $500,000. (2) Paid-in surplus amounting to not less than 40% of its capital stock. (b…

A territorial bank may be organized by five (5) or more individual incorporators. All incorporators shall be United States citizens and residents of Guam. Each incorporator shall subscribe and pay in full in COL 2025-04-22 cash for stock having a par value of not less than one-ha…