Title 11 — Finance and Taxation

No association shall be deemed to borrow money through the issuance of investment certificates. No association shall borrow money except as authorized by this chapter. Except with the approval of the commissioner, no association may borrow money for a period of more than one year…

Agencies. An association may borrow from or sell, exchange, transfer, pledge, hypothecate or otherwise encumber or dispose of any of the notes or obligations held by it, together with the mortgages, trust deeds and other security therefor to a Federal home loan bank or other simi…

For each loan made by a savings and loan association a note or notes or other obligation or obligations expressing a rate of interest must COL120106 be executed by the borrower and must be secured, except as otherwise permitted under Section 130120 or 130121, (a) by a first mortg…

Loans may be made only upon the definite contract plan. Subject to the provisions of this act loans upon the definite contract plan shall be repayable at a designated time or in installments to be specified in the notes or other obligations evidencing such loans. SOURCE: GC §4145…

For the purpose of this act, an amortized loan shall be one which provides for payments to be made on the principal in installments to be paid at regular intervals at least semiannually and to commence not later than one year after the date of the loan. Such installments may incl…

Account. An association shall pay interest at a rate not less than that paid on regular passbook savings accounts as calculated by the individual savings and loans on Guam on home mortgage escrow accounts. SOURCE: GC §41458.1. Added by P.L. 15-95:2. COL120106

Loans may be made upon the security of improved real property in an amount not in excess of 60 percent of the appraised value of such real property; provided, however, that amortized loans may be made in an amount not in excess of 70 percent of the appraised value of such real pr…

Loans secured by the pledge of shares or investment certificates of the lending association may be made to the extent of not more than 90 per cent of the then value of such shares or investment certificates. Any loans which are wholly secured by the pledge of such shares or inves…

Loans may be made by any association secured by the pledge of notes or other obligations evidencing loans which are secured by property or securities upon which the association might make a direct loan, if such collateral loans do not exceed 90 per cent of whichever of the follow…

COL120106 Whenever a borrower shall be in arrears in the payment of his interest or loan installments, or shall be in default under the terms of any pledge, deed of trust or mortgage securing his loan, the whole loan shall become due at the option of the association, and the asso…

No association shall make any loan other than an amortized loan unless at least ninety per cent of the unpaid principal of all its loans then in force be amortized loans as defined in Section 130109 of this act, and no association shall make any loan other than an amortized loan …

Except with the consent of the Commissioner, no association shall hereafter make any one loan in an amount exceeding three percent (3%) of the book value of its assets; but the provisions of this section shall not apply to any loans which do not exceed twenty thousand dollars ($2…

Except with the consent of the Commissioner, no association shall commit itself to make any loans for amounts in excess of the total of (a) amount of cash available for loan purposes, (b) amount of cash which COL120106 can readily be realized upon the sale of redemption of invest…

No loan shall be made upon the appraisement of, nor shall compensation for any appraisement be paid to, any appraiser, officer or member of any committee, who shall not have been first approved in writing by the board of directors for such association. Such approval may be subjec…

No loans shall be made, for himself or as agent or as partner of another, directly or indirectly, to any director or officer of any association by such association, except on the security of a first lien on the home or combination of home and business property owned and occupied …

An association (a) either with or without security, may make loans, advance credit, and purchase obligations representing loans and advances of credit, pursuant to Title 1 of the National Housing Act, as amended, if the Federal Housing Administrator shall insure such association …

Notwithstanding anything to the contrary contained in this act, (a) if a portion of a loan secured by real property is guaranteed by the Administrator of Veteran’s Affairs under Title 3 of the "Servicemen’s Readjustment Act of 1944" or any act of Congress supplementary or amendat…

The commissioner shall have power to establish a uniform fiscal year for all associations, and shall have power to establish a uniform classification of accounts to be kept by associations, or to classify associations and to establish a uniform classification of accounts for each…

Each association shall keep its books in such form as to show accurately in detail its assets and liabilities and its receipts and expenditures and shall keep records written in ink or typewriting showing the appraised values of the real estate security held in connection with ea…

Profits and losses shall be apportioned at least annually. In computing earnings or dividends on shares, the rate shall be applied to the value thereof, subject to regulations prescribed by the by-laws or directors in respect of payments on such shares since the last prior apport…

Any association by resolution of its board of directors may irrevocably establish all or any part of any reserve or surplus account for the sole purpose of absorbing losses; provided, however, that, except in the case of reserve or surplus accounts which were available prior to t…

Each association shall make a full report in writing to the Commissioner annually, within thirty (30) days after the close of its fiscal year, which report shall be verified by its president or vice- president and secretary or treasurer, showing accurately the financial condition…

Each association, at least once in each year, shall cause its books and accounts to be audited at its own expense by a certified public accountant of any of the states or territories of the United States or by such other accountants selected by such association as shall be approv…

The Commissioner shall have power in his discretion to require each association to mail once in each year within sixty days after the close of its fiscal year to each of the investors of such association a copy of a financial statement, showing, in such form and detail as the com…

Each association issuing shares shall designate the capital attributable to such shares, in any statement or advertisement which it shall publish in which any reference shall be made to such capital, as withdrawable capital; in any such statement or advertisement the capital attr…

Notwithstanding any provision of law including §§113108 and 133103 of this Code). a savings and loan association whose accounts are insured by the Federal Savings and Loan Insurance Corporation (FSLIC) shall be deemed to meet all net worth, reserve or capital requirements for all…

No person, Co-partnership or corporation shall act as an agent of an association or as a salesman of an association or shall operate an agency of an association unless at the time licensed so to do under the laws of Guam. Such license require, prior to its issuance, a certificati…

No association shall issue or publish or cause or permit to be issued or published, any advertisement that it is doing or permitted to do any business which is prohibited by law to an association, or any advertisement which shall misrepresent the nature of the shares, stock or in…

All officers, employees and agents of each association, having access to moneys or negotiable securities of such association in the regular discharge of their duties, or issuing stock, shares or investment certificates of such association in the regular discharge of their duties,…

COL120106 11 GCAFINANCE & TAXATION Any association may (but shall not be required to) provide in its by- laws that every person holding a certificate of membership as a borrower from such association shall be a member thereof, and in the case of any association having by-laws con…

An association operating under this Title shall have all the specific powers conferred by this Title and in addition thereto, the following general powers: To exercise, notwithstanding the provisions of §2105 of Title 18, Guam Code Annotated, all the powers necessary to qualify a…

The Savings and Loan Commissioner shall be appointed by the Governor, with the advice and consent of the Legislature, and shall hold office at the pleasure of the Governor. He shall receive such compensation as shall be prescribed or authorized by law. Before entering upon the du…

It shall be the duty of the commissioner to receive and place on file in his office the annual and other reports required by law to be made by associations and to make on or before the first day of May in each year a tabulated report to the Governor, showing the condition of all …

The commissioner shall periodically examine, or cause to be examined, the books, affairs and accounts of any association, or may, in lieu of making such examination, accept any examination of any such association made by the Home Loan Bank Board, a Federal home loan bank or the F…

The commissioner shall have power to issue subpoenas and require attendance of any and all officers, directors, agents, salesmen, collectors and employees of any association, and such other witnesses, including former officers, directors, agents, salesmen, collectors and employee…

The commissioner shall have power to promulgate, and from time to time to amend, supplement and revoke in whole or in part, rules and regulations not inconsistent with this act or the laws of this territory governing procedure before the commissioner and the exercise by the commi…

The commissioner shall have power to commence and prosecute actions and proceedings to enjoin violations of this act or violations of orders or decisions of the commissioner rendered pursuant to this act, and for the enforcement of any and all civil penalties provided by this act…

If the commissioner as the result of any examination or from any report made to him or to any association doing business in this territory or its investors or any thereof, shall find that such association is violating the provisions of its articles of incorporation or charter or …

Whenever any association of whose property, business and assets the commissioner has taken possession, as aforesaid, deems itself aggrieved thereby, it may at any time within thirty days after such taking possession apply to the District Court of Guam to enjoin further proceeding…

Upon taking possession of the business, property and assets of any association, the commissioner may under his hand and official seal appoint a custodian, require from him a good and sufficient bond and place him in charge as his representative. Upon taking such possession, the c…

Whenever the Commissioner shall demand possession of the property business and assets of any association, pursuant to §124105 or § 141107 of this Act, the refusal of any officer, agent, employee or director of such association to comply with such demand shall constitute a petty m…

Upon taking possession of the property, business and assets of any association, the commissioner shall require the president and secretary of such association to, and such officers shall, make a schedule of all its property and assets and of all collateral held by it as security …

In liquidating the affairs of an association, the commissioner shall have power to collect all moneys due to, and claims of, such association and to give full receipt therefor; to release or reconvey all real or personal property pledged, hypothecated or transferred in trust as s…

The commissioner in his discretion may accept approved claims against any association in his possession for liquidation, based on investment certificates, or on shares in the case of any association in which shareholders shall have heretofore been granted the right and option by …

Corporation as Custodian, Receiver or Liquidator of Insured Associations.

to Reimbursement, After Payment of all Valid Claims, From Excess Proceeds of Liquidation. In the event the assets of any insured association are liquidated for an amount in excess of the amount required to pay all claims of investment certificates, share or account holders and ot…

Records. In making its order approving the commissioner’s final statement of the liquidation of an association, the court shall determine the amounts of COL120106 11 GCAFINANCE & TAXATION the liquidating dividends to which claimants and investors are entitled but which then remai…

All moneys collected under the provisions of this act shall be disposed of in the manner and for such purposes as shall be prescribed by law or laws. SOURCE: GC §41666.

Every order, decision, approval, certificate, permit or other official act of the commissioner provided for in Sections 113104, 113105, 113107 and 119102 of this act is subject to judicial review in accordance with law. An action or proceeding for judicial review of an order, dec…

Corporation as Custodian, Receiver or Liquidator of Insured Associations. The Federal Saving. and Loan Insurance Corporation is hereby authorized and empowered to be and act without bond as custodian, receiver or liquidator of any savings and loan association which has the insura…