Title 18, Business Structure and Function

One who holds property by virtue of a lien thereon, is not entitled to compensation from the owner thereof for any trouble or expense which he incurred respecting it, except to the same extent as a borrower, under Civil Code [1970] §§ 1892 and 1893. SOURCE: CC § 2892. NOTE: No 19…

Other things being equal, different liens upon the same property have priority according to the time of their creation, except in cases of bottomry and respondentia. SOURCE: CC § 2897.

A mortgage given for the price of real property, at the time of its conveyance, has priority over all other liens created against the purchaser, subject to the operation of the recording laws. SOURCE: CC § 2898. COMMENT: See Title 21 of this code for the recording laws governing …

Where one has a lien upon several things, and other persons have subordinate liens upon or interests in some but not all of the same things, the person having the prior lien, if he can do so without risk or loss to himself, or of injustice to other persons, must resort to the pro…

Every person having an interest in property subject to a lien, has the right to redeem it from the lien, at any time after the claim is due, and before his right of redemption is foreclosed, and, by such redemption, becomes subrogated to all the benefits of the lien, as against a…

One who has a lien inferior to another, upon the same property, has right: 1. To redeem the property in the same manner as its owner might, from the superior lien; and 2. To be subrogated to all the benefits of the superior lien, when necessary for the protection of his interests…

COL120106 Redemption from a lien is made by performing, or offering to perform, the act for the performance of which it is a security, and paying, or offering to pay, the damages, if any, to which the holder of the lien is entitled for the delay. SOURCE: CC § 2905. NOTE: No 1970 …

A lien is deemed accessory to the act for the performance of which it is a security, whether any person is bound for such performance or not, and is extinguishable in like manner with any other accessory obligation. SOURCE: CC § 2909.

The sale of any property on which there is a lien, in satisfaction of the claim secured thereby, or in case of personal property, its wrongful conversion by the person holding the lien, extinguished the lien thereon. SOURCE: CC § 2910.

A lien is extinguished by the lapse of time within which, under the provisions of Title 7 of the Guam Code Annotated [Civil Procedure], an action can be brought upon the principal obligation. SOURCE: CC § 2911. COL120106

The partial performance of an act secured by a lien does not extinguish the lien upon any part of the property subject thereto, even if it is divisible. SOURCE: CC § 2912.

The voluntary restoration of property to its owner by the holder of a lien thereon, dependent upon possession, extinguishes the lien as to such property, unless otherwise agreed by the parties, and extinguishes it, notwithstanding any such agreement, as to creditors of the owner …

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…