(a) Real estate as may be reasonably required for its home and branch offices; except that where title to real estate is, or has been, acquired under the conditions of any mortgage, or by purchase or set off on execution upon judgment for debts contracted in the course of business, or by other process in settlement for debts, the same may be held for a period not to exceed five (5) years unless permission to hold for a longer period is granted in writing by the Commissioner;

(b) Bonds or notes secured by first mortgages or deeds of trust upon improved real estate, which improvements may be or include those to be placed thereon by the proceeds of said bonds or notes, in a maximum amount not to exceed twenty percent (20%) of its assets; provided that the value of the security shall, at the time of the investment, be at least fifty percent (50%) more than the principal of the obligations secured thereby, except when the mortgage loans are guaranteed or insured by the government of the United States or any agency thereof;

(c) Interest bearing bonds, notes or obligations of the United States, or any political subdivision of the United States or any incorporated city of the United States of a population of not less than fifty thousand (50,000) inhabitants as shown by the next preceding Federal census, provided that there has been no default in the payment of either principal or interest on any of the general obligations of issuer for a period of fifteen (15) years next preceding the date of such investment;

22 Guam Code Ann. BUSINESS REGULATIONS
CH. 15 BUSINESS OF INSURANCE

(d) Stock issued by any Federal home loan bank of which such insurer may be eligible to become a member; bonds, debentures and notes issued by any Federal home loan bank;

(e) Not more than ten percent (10%) of an insurer’s capital and surplus may be invested in or loaned upon the security of any one person, nor loaned upon the security of any one parcel of property; provided, however, that there shall be a fifty percent (50%) limitation of the total amount of an insurer=s capital and surplus that may be invested and/or deposited in any bank that provides evidence to the domestic insurer that it has met each of following requirements:

(1) It is insured by the Federal Deposit Insurance Corporation (AFDIC@) or by the Federal Savings and Loan Corporation (AFSLC@), or meets the minimum levels of capital-to-asset ratio measures for Tier One and Tier Two capital as established by the Bank of International Settlement and is otherwise licensed and authorized to transact business and otherwise accept deposits without restrictions in the territory of Guam.

(2) The total amount of its deposits from all domestic insurers shall not exceed ten percent (10%) of its total assets; and

(3) The bank is not listed as a troubled institution by FDIC.

(f) Loans upon the security of its own policies not exceeding the cash surrender value thereof at the time of making the loan.

SOURCE: GC § 43166.Subsection (e) amended by P.L. 22-162.

2015 NOTE: Subsection designations were altered in subsection (e) to adhere to the Compiler’s alpha-numeric scheme pursuant to 1 Guam Code Ann. § 1606.