Title 11, Finance and Taxation

(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

(a) There is hereby established, separate and apart from the General Fund, the “Better Public Service Fund.” (b) Ten percent (10%) of all fee and license revenues received by the Department of Revenue and Taxation shall be deposited into said Fund. (c) The Director of Revenue and…

The moneys in the Fund shall be used for the following purposes: (a) administering the operations of the Regulatory Division pursuant to Chapter 71 of Title 11, Guam Code Annotated; (b) improving and modernizing systems that are used to provide Department services to the public, …

As used in this Chapter, unless the context otherwise requires: “Collective investment fund” means a fund maintained by a financial institution that consists solely of assets of retirement, pension, profit sharing, stock bonus or other trusts that are exempt from federal income t…

A financial institution may establish and maintain collective investment funds for the investment of assets of retirement, pension, profit sharing, stock bonus or other trusts that are exempt from federal income tax, and may invest assets of retirement, pension, profit sharing, s…

(a) A financial institution shall establish and maintain a fund in accordance with a written plan approved by resolution by the board of directors of the financial institution, or by a committee authorized by the board. The plan's provisions shall be consistent with the provision…

The financial institution shall have the exclusive management and control of each fund administered by it, and the sole right at any time to sell, convert, exchange, transfer, or otherwise change or dispose of the assets comprising within the fund, except as a prudent person migh…

A financial institution shall implement and maintain effective operational controls to ensure that: (a) The fund is valued regularly. For a fund that holds investments with daily valuations, such as mutual funds and publicly traded stocks, bonds, and exchange-traded funds, values…

Accounts. (a) All participating accounts in a fund shall have a proportionate undivided interest in all the fund's assets, which shall be reported in units of beneficial interest. No participating account shall have individual ownership of any asset in the fund. (b) A hard copy o…

A financial institution administering a fund shall not have an interest in that fund other than in its fiduciary capacity. If, because of a creditor relationship or otherwise, the bank acquires an interest in a participating account, the participating account must be withdrawn on…

(a) At least once during each 12-month period, the financial institution administering a fund shall arrange for an audit of the fund by auditors responsible only to the board of directors of the financial institution. (b) At least once during each 12-month period, the financial i…

The financial institution administering a collective investment fund may charge a reasonable fund management fee only if the amount of the fee does not exceed an amount commensurate with the value of legitimate services of tangible benefit to the participating fiduciary accounts …

A mistake made in good faith and in the exercise of due care in connection with the administration of a fund is not a violation of this Chapter or any rules or regulations issued under this Chapter, if promptly after discovery of the mistake the financial institution takes whatev…

The Division of Insurance, Securities and Banking shall regulate all aspects of this Chapter, and shall inspect all such funds no less than annually for compliance. Audits of funds by the respective federal authorities of the parent companies of such funds shall suffice to meet t…