Title 11 — Finance and Taxation

Liheslaturan Guåhan finds as facts and determines that: (a) there exists on the island of Guam a need for the protection of the public interest, to regulate companies which are engaged in the Trust Company business; (b) such trust companies should be licensed and regulated in suc…

For the purposes of this Chapter, except as otherwise specifically provided, the following words and phrases, together with all of the COL4122017 common derivatives thereof (i.e. verbs, plurals, feminine gender, etc.) shall have the meaning ascribed to them as follows: (a) Benefi…

This Chapter does not apply to: (a) banks or banking institutions regulated under the provisions of Chapter 100 of Title 11 of the Guam Code Annotated; (b) savings and loan institutions regulated under Chapter 141 of Title 11 of the Guam Code Annotated; (c) title insurers, but on…

Without License. It is unlawful for any Trust Company to engage in the business of a Trust Company without complying with the provisions of this Chapter and having a license issued by the Commissioner.

Name; Exceptions. (a) Except as otherwise provided in Subsection 2, no person, partnership, firm, association, corporation or other business organization formed and doing business under the laws of Guam may: (1) use the words >Trust Company= or any direct derivative of these word…

No Trust Company may be organized or operated with a capital of less than One Hundred Thousand Dollars ($100,000.00), or in such greater amount as may be required by the Commissioner, and paid-up surplus of Fifty Thousand Dollars ($50,000.00), or in such greater amount as may be …

(a) Any three (3) or more persons may execute articles of incorporation and be incorporated as a trust company in the manner prescribed in this Chapter. (b) Any two (2) or more persons may execute articles of organization and form a trust company in the manner prescribed in this …

(a) The articles of incorporation must contain: (1) the corporate name adopted by the corporation, which must be such as to distinguish it from any other Trust Company formed or incorporated on Guam, or engaged in the trust business on Guam; (2) the place where its business is to…

Commissioner Must Authorize Business Before Company May Transact Business. (a) The Commissioner shall issue a certificate in the form provided by law for other corporations, and the existence of the Trust Company as a corporation dates from the issuance of the certificate by the …

Incorporation; Filing of Copies. The articles of incorporation must: (a) be subscribed to by at least three (3) of the stockholders of the proposed corporate Trust Company; (b) be acknowledged by them before some person competent to take an acknowledgment of deeds; and (c) be fil…

(a) The corporate Trust Company shall file an application for a license to transact Trust Company business with the Commissioner on forms prescribed by the Commissioner, which must contain such information as the Commissioner requires. (b) A non-refundable fee of One Thousand Dol…

COL4122017 (a) Within forty-five (45) days following the filing of the application for a license, the Commissioner shall investigate the facts of the application and the other requirements of this Chapter to determine: (1) that the persons who will serve as directors or officers …

(a) If the Commissioner finds that the applicant has met all the requirements of this Chapter and other applicable laws, the Commissioner shall, within thirty (30) days after the conclusion of the investigation, issue a license to the applicant to conduct a Trust Company business…

(a) The initial fee to be paid for a Trust Company license must be in proportion to the authorized capitalization of the Trust Company as follows: (1) a Trust Company having a capitalization of more than One Hundred Thousand Dollars ($100,000.00), up to and including Five Hundred…

for Business. If a proposed Trust Company fails to open for business within six (6) months after the date the license was issued, or within an additional six (6) month extension granted by the Commissioner upon written application and for good cause shown, the Commissioner shall …

Prohibited. (a) Each licensed Trust Company may: COL4122017 (1) act as trustee under any mortgage or bond of any person or of any municipality or body politic; (2) accept and execute any municipal or corporate or individual trust consistent with the laws of Guam; (3) act under th…

(a) Every Trust Company: (1) shall keep all trust funds and investments separate from the assets of the Company (These funds shall not be mingled with the securities and investments of any other trust or of the corporation, and all investments made by the Company as a fiduciary m…

(a) A Trust Company which is acting as a fiduciary or agent shall, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the Trust Company as a fiduciary or agent, make investments in accordance with the Uniform Pruden…

COL4122017 (a) Annual Statement. Every Trust Company that is licensed under the Act shall, on or before May 1 of each year, file with the Commissioner, a financial statement verified under oath by two (2) executive officers of the company, setting forth its financial condition, t…

(a) Whenever any Trust Company desires to discontinue its trust business, it shall do the following: (1) publish the intention of the company, once a week for three (3) consecutive weeks in a newspaper of general circulation on Guam; and (2) submit an affidavit to the Commissione…

(a) The Commissioner may take possession of a Trust Company if, after a hearing, the Commissioner shall find: (1) its capital is impaired or it is otherwise in an unsound condition; (2) its business is being conducted in an unlawful or unsound manner; (3) it is unable to continue…

(a) A plan or reorganization shall not be prescribed under this Act, unless: (1) the plan is feasible and fair to all classes of trustors, creditors and stockholders; (2) the face amount of the interest accorded to any trustors, creditors or stockholders under the Plan does not e…

(a) In liquidating a Trust Company, the Commissioner may exercise any power thereof, but the Commissioner shall not, without the approval of the U.S. District Court of Guam: (1) sell any asset of the Trust Company having a value in excess of One Thousand Dollars ($1,000.00); (2) …

(a) The directors of a Trust Company shall require good and sufficient fidelity bonds in the amount of Twenty-five Thousand Dollars ($25,000.00) or more on all active officers and employees, whether or not they receive a salary or other compensation from the Company, to indemnify…

(a) Notwithstanding any other provisions of this Act, Trust Companies licensed pursuant to the provisions of this Chapter and any bank conducting trust business pursuant to § § 106151 et seq. of Title 11 of the Guam Code Annotated may apply on behalf of the Guam-based trusts unde…

(a) The income tax payments made under the Special QC program, shall be returned to the respective trusts at the completion of the one hundred eighty (180) day period without interest. (b) The first One Million Dollars ($1,000,000) generated from the trust shall be authorized and…

All information pertaining to Guam-based trusts shall be deemed proprietorial and confidential unless: (a) the Commissioner deems it in the public interest to make such information available for public inspection; or (b) the Grantor/Trust authorizes the Commissioner to make avail…

Revenue and Taxation. (a) The Commissioner of Banking and Insurance, or any examiner duly authorized, shall once during each year make a full examination into all the books, papers and affairs or any Trust Company doing business under §§ 160301, 160302, 160303 and 160304 of this …

(a) For each examination of a Trust Company=s books and records required or authorized under this Chapter, the Commissioner shall charge and collect from the Trust Company a fee for conducting the examination and in preparing and typing the report of the examination at a reasonab…

In addition to other provisions of this Title which are applicable to this Title as a whole or specifically made applicable to Trust Companies, the Commissioner may by regulation make applicable to trust companies any regulatory provision contained therein, which can be reasonabl…

The Commissioner may adopt such regulations as may be necessary to carry out the purposes and provisions of this Chapter. Attached [to P.L. 25-073] as Exhibit A are Trust Company Rules and Regulations of the Department of Revenue and Taxation. These Rules and Regulations are here…

Close Company, Liquidate Business and Revoke License; Failure to Allow Inspection Constitutes Ground to Revoke License. (a) The violation of any of the provisions of this Chapter by the officers or directors of any Trust Company authorized to do business under the provisions of t…

Every officer, employer, director or agent of a Trust Company who knowingly or willfully neglects to perform any duty required by this Chapter or other applicable law, or who knowingly or willfully fails to conform to any material lawful requirement made by the Commissioner, is s…

Misdemeanor, Unless Otherwise Specified. Where no other punishment is otherwise provided by law, any person violating any provision of this Chapter is guilty of a misdemeanor. ---------- COL4122017