Title 11 — Finance and Taxation

This title shall be known as the Savings and Loan Association Act. SOURCE: GC §41700.

Nothing in this act is intended or shall be construed to impair in any manner the rights of those who have heretofore become investors in any association. No action or proceeding, either civil or criminal, or cause of action arising under any law of this territory, shall abate by…

Except as otherwise provided in this Act, every director, officer, agent, salesman or employee of any association and every other person who wilfully violates or wilfully fails to comply with any of the provisions of this Act is guilty of a misdemeanor. SOURCE: GC §41702. Amended…

Wherever it is stated in this act that an agreement or contract contrary to the provisions of this act, or of a particular chapter, section or provision of this act, shall be void, such statement shall be deemed limited to the particular portion of such agreement or contract whic…

If any chapter, section, subsection, sentence, clause or phrase of this act is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this act. The Legislature hereby declares that it would have passed this act, and ea…

No provision of this act imposing any liability, either civil or criminal, shall apply to any act done or omitted in good faith in conformity with any rule, regulation, approval, consent, order, direction or other act of the commissioner notwithstanding that such rule, regulation…

The provisions of this act shall apply to all savings and loan associations, whether such associations be presently in existence or be hereafter organized. SOURCE: GC §41706. ---------- COL120106

The terms plan and plan of reorganization, as used in this Chapter, are hereby defined to mean a plan for the rehabilitation, readjustment, reorganization or liquidation of an association, or for the readjustment, modification or reorganization of the rights or interests of any o…

As a condition to restoration of possession and resumption of business pursuant to Section 141107 of this act, the commissioner may require an association, the business, property and assets of which are in his possession, to adopt and agree to carry out a plan of reorganization p…

In any plan proposed pursuant to Section 146102 due consideration shall be given to the rights and interests of all persons affected thereby (with due regard to the feasibility of such plan and the condition of such association), in the following order of priorities: First, secur…

At any hearing before the commissioner pursuant to Section 146102 any interested certificate holder, shareholder, stockholder or creditor shall have the right to appear either in support of the plan or plans or petition or in opposition thereto; and any such hearing shall be, amo…

Wherever provision is made in this chapter for at least a specified number of day’s notice to investors and creditors of a hearing, such notice shall state the time and place of such hearing and shall be (a) mailed by first class mail in sealed envelopes, postage pre-paid, to eac…

The Commissioner shall have and may exercise the same jurisdiction, authority and powers with respect to any business, properties or assets retained by or delivered to the commissioner pursuant to any plan as the commissioner shall have with respect to the business, properties an…

No appeal from an order of court referred to in this chapter shall be effectual for any purpose unless the appellant or appellants, within 30 days after the entry of the order appealed from, shall file with the clerk of such a bond executed on the part of the appellant or appella…

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

(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, …