Title 18 — Business Structure and Function

Mortgage is a contract by which specific property is hypothecated for the performance of an act, without the necessity of a change of possession. SOURCE: CC § 2920.

COL4122017 A mortgage may be created upon property held adversely to the mortgagor. SOURCE: CC § 2921.

A mortgage can be created, renewed or extended, only by writing, executed with the formalities required in the case of a grant of real property. SOURCE: CC § 2922.

The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession. SOURCE: CC § 2923.

(a) Every transfer of an interest in property, made only as a security for the performance of another act, is to be deemed a mortgage, [except when in the case of personal property it is accompanied by actual change of possession, in which case it is deemed a pledge.] (b) Every t…

The fact that a transfer was made subject to defeasance on a condition, may, for the purpose of showing such transfer to be a mortgage, be proven (except as against a subsequent purchaser or encumbrancer for value and without notice) though the fact does not appear by the terms o…

COL4122017 A mortgage is a lien upon everything that would pass by a grant of the property. SOURCE: CC § 2926.

A mortgage does not entitle the mortgagee to the possession of the property, unless authorized by the express terms of the mortgage, but after the execution of the mortgage the mortgagor may agree to such change of possession without a new consideration. SOURCE: CC § 2927.

A mortgage does not bind the mortgagor personally to perform the act for the performance of which it is a security, unless there is an express covenant therein to that effect. SOURCE: CC § 2928.

No person whose interest is subject to the lien of a mortgage may do any act which will substantially impair the mortgagee's security. SOURCE: CC § 2929.

Title acquired by the mortgagor, subsequent to the execution of the mortgage, inures to the mortgagee as security for the debt in like manner as if acquired before the execution. SOURCE: CC § 2930.

A mortgagee may foreclose the right of redemption of the mortgagor in the manner prescribed by Title 7 of this Code (Civil Procedure). SOURCE: CC § 2931.

A power of sale may be conferred by a mortgagor upon the mortgagee or any other person, to be exercised after a breach of the obligation for which the mortgage is a security. SOURCE: CC § 2932. COL4122017

A power of attorney to execute a mortgage must be in writing, sub- scribed, acknowledged, or proved, certified, and recorded in like manner as powers of attorney for grants of real property. SOURCE: CC § 2933.

An assignment of a mortgage may be recorded in like manner as a mortgage, and such record operates as notice to all persons subsequently deriving title to the mortgage from the assignor. SOURCE: CC § 2934.

When the mortgage is executed as security for money due, or to become due, on a promissory note, bond, or other instrument, designated in the mortgage, the record of the assignment of the mortgage is not, of itself, notice to a mortgagor, his heirs or personal representatives, so…

The assignment of a debt secured by mortgage carries with it the security. SOURCE: CC § 2936.

A recorded mortgage must be discharged upon the record by the officer having custody thereof, on the presentation to him of a certificate signed by the mortgagee, his personal representatives or assigns, acknowledged or proved and certified as prescribed by Title 21 Guam Code Ann…

Foreign executors, administrators, and guardians may satisfy mortgages upon the records of Guam, upon producing and recording in the Department of Land Management a duly certified and authenticated copy of their letters COL4122017 testamentary, or of administration, or of guardia…

When any mortgage has been satisfied, the mortgagee or his assignee must immediately, on the demand of the mortgagor, execute, acknowledge, and deliver to him a certificate of the discharge thereof, so as to entitle it to be recorded, or he must enter satisfaction, or cause satis…

Contracts of bottomry or respondentia, although in the nature of mortgages, are not affected by any of the provisions of this Chapter. SOURCE: CC § 2942.

The description of the mortgaged property shall be such as to enable the parties to the mortgage or any other person, after reasonable inquiry and investigation, to identify the same. SOURCE: CC § 2943 amended by P.L. 5-54. ----------- ARTICLE 2 MORTGAGE OF REAL PROPERTY

Any interest in real property which is capable of being transferred may be mortgaged. SOURCE: CC § 2947.

A mortgage of real property may be made in substantially the following form; but may be made in any form in use in the United States, except in the form of deeds of trusts and conveyances with right to repurchase: “This mortgage, made this ___ day of ____, in the year ____, by A.…

When a grant of real property purports to be an absolute conveyance, but is intended to be defeasible on the performance of certain conditions, such grant is not defeated or affected as against any person other than the grantee or his heirs or devisees, or persons having actual n…

Mortgages of real property shall be acknowledged or proved, certified and recorded, in like manner and with like effect, as grants thereof. COL4122017 SOURCE: CC § 2952 amended by P.L. 5-54. ---------- ARTICLE 3 GUAM SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2010 …

COL4122017 This Act may be cited as the “Guam Secure and Fair Enforcement for Mortgage Licensing Act of 2010, or Guam S.A.F.E. Mortgage Licensing Act of 2010.”

I Liheslaturan Guåhan finds that the activities of mortgage loan originators and the origination or offering of financing for residential real property have a direct, valuable and immediate impact upon Guam’s consumers, Guam’s economy, the neighborhoods and communities of Guam, a…

For purposes of this Act, the following definitions shall apply: (a) Clerical or Support Duties. For purposes of this Subsection, the term “Clerical or Support Duties” may include subsequent to the receipt of an application: (1) the receipt, collection, distribution, and analysis…

(a) General. An individual, unless specifically exempted from this Act under Subsection (c) of this Section, shall not engage in the business of a mortgage loan originator with respect to any dwelling located in Guam without first obtaining and maintaining annually a license unde…

(a) Application Form. Applicants for a license shall apply in a form as prescribed by the Commissioner. Each such form shall contain content as set forth by rule, regulation, instruction or procedure of the Commissioner and may be changed or updated as necessary by the Commission…

The Commissioner shall not issue a mortgage loan originator license COL4122017 unless the Commissioner makes, at a minimum, the following findings: (a) No License Revocation. The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, …

Originators. (a) Minimum Educational Requirements. In order to meet the pre- licensing education requirement referred to in § 36306 (d) of this Act, a person shall complete at least twenty (20) hours of education approved in accordance with Subsection (b) of this Section, which s…

(a) Testing of Loan Originators, General. In order to meet the written test requirement referred to in § 36306 (e) of this Act, an individual shall pass, in accordance with the standards established under this Subsection, a qualified written test developed by the Nationwide Mortg…

(a) General. The minimum standards for license renewal for mortgage loan originators shall include the following: (1) The mortgage loan originator continues to meet the minimum standards for license issuance under § 36305 (a) through (f) of this Act. (2) The mortgage loan origina…

(a) General. In order to meet the annual continuing education requirements referred to in § 36309 (a)(2), a licensed mortgage loan originator shall complete at least eight (8) hours of education approved in accordance with Subsection (b) of this Section, which shall include at le…

In addition to any other duties imposed upon the Commissioner by law, the Commissioner shall require mortgage loan originators to be licensed and registered through the Nationwide Mortgage Licensing System and Registry. In order to carry out this requirement, the Commissioner is …

Information Challenge Process. The Commissioner shall establish a process whereby mortgage loan originators may challenge information entered into the Nationwide Mortgage Licensing System and Registry by the Commissioner. COL4122017

(a) In order to ensure the effective supervision and enforcement of this Act, the Commissioner may, pursuant to the Administrative Adjudication Law: (1) Deny, suspend, revoke, condition or decline to renew a license for a violation of this Act, rules or regulations issued under t…

(a) Coverage, Form and Regulations. Each mortgage loan originator shall be covered by a surety bond in accordance with this Section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this Act, the surety bond of such person su…

A minimum net worth shall be continuously maintained for mortgage loan originators in accordance with this Section. (a) In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this Act, the net worth of such COL4122017 person subjec…

In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing: (a) Protections. Except as otherwise provided in Public Law 110- 289, Section 1512, the requirements under any Federal law or Guam law regarding the privacy or conf…

In addition to any authority allowed under this Act, the Commissioner shall have the authority to conduct investigations and examinations as follows: (a) Authority to Access Information. For purposes of initial licensing, license renewal, license suspension, license conditioning,…

It is a violation of this Act for a person or individual subject to this Act to: (a) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; (b) engage in any unfair or deceptive practice toward any person…

Each mortgage licensee shall submit to the Nationwide Mortgage Licensing System and Registry reports of condition, which shall be in such form and shall contain such information as the Nationwide Mortgage Licensing System and Registry may require.

Registry. The Commissioner is required to report regularly violations of this Act, as well as enforcement actions and other relevant information, to the Nationwide Mortgage Licensing System and Registry, subject to the provisions contained in § 36316 of this Act.

Non-federally insured credit unions which employ loan originators, as defined in PL 110-289, Title V, the S.A.F.E. Act, shall register such employees with the Nationwide Mortgage Licensing System and Registry by COL4122017 furnishing the information concerning the employees’ iden…

The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or websites, and any other documents as established by rule, regulation…

The effective date of this Act shall be July 31, 2010.

If any provision of this Act or its application to any person or circumstance is held invalid, the remainder of the Act or the application of the provision to other persons or circumstances is not affected. -------- COL4122017