Should the apartments be conveyed or leased prior to the completion of construction of the building or buildings for the purpose of financing such construction, all moneys from the sale of such apartments, including any payments made on loan commitments from lending institutions, shall be deposited by the developer in a trust fund with a bank, savings and loan association, or trust company authorized to do business in Guam under an escrow arrangement. Disbursements from such fund may be made, from time to time, to pay for construction costs of the building or buildings in proportion to the valuation of the work completed by the contractor as certified by a registered architect or professional engineer, and for architectural, engineering, finance, and legal fees, and for other incidental expenses of the condominium project as approved by the mortgagee. The balance of the moneys remaining in the trust fund shall be disbursed only upon completion of the building or buildings, free and clear of all mechanic’s and material men’s liens. The Commission may impose other restrictions relative to the retention and disbursement of the trust fund.
SOURCE: CC ‘1283.

§ 45115. Issuance of Final Reports Prior to Completion of
Construction.

No final public report may be issued prior to completion of construction of the project unless there is filed with the Commission.

(a) A verified statement showing all costs involved in completing the project, including land payments or lease payments, real property taxes, construction costs, architect, engineering, and attorneys fees, financing costs, provisions for contingency, etc., which must be paid on or before the completion of construction of the building.
(b) A verified estimate of the time of completion of construction of the total project;
(c) Satisfactory evidence of sufficient funds to cover the total project cost from purchasers funds, equity funds, interim or permanent loan commitments, or other sources;
(d) A copy of the executed construction contracts;

(e) Satisfactory evidence of a performance bond of not less than one hundred percent (100%) of the cost of construction;

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21 Guam Code Ann. REAL PROPERTY
CH. 45 HORIZONTAL PROPERTY ACT

(f) If purchasers funds are to be used for construction, an executed copy of the escrow agreement for the trust fund required under § 45114 for financing construction, which shall expressly provide for:

(1) No disbursements by the escrow agent for payment of construction costs unless bills are submitted with the request for such disbursements which have been approved or certified for payment by the mortgagee or a financially disinterested person; and

(2) No disbursements from the balance of the trust fund after payment of construction costs pursuant to the preceding paragraph until the escrow agent receives satisfactory evidence that all mechanics’ and material men’s liens have been cleared, unless sufficient funds are set aside for any bona fide dispute.
SOURCE: CC ‘1284.