11 Guam Code Ann. § 106173
Terms Used In 11 Guam Code Ann. § 106173
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Personal property: All property that is not real property.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
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(a) In addition to other investments expressly authorized by this
Title a territorial bank may purchase (or discount):
(1) Obligations which satisfy the requirements of this Title for loans and are acquired in full.
(2) Obligations of the United States, or states of the United
States.
(3) Obligations of the International Bank for Reconstruction and Redevelopment.
(4) Obligations of a subdivision or instrumentality of a state or territory of the United States, an authority organized under state or territorial law, an interstate compact or by substantially identical legislation adopted by two or more states.
(5) Obligations of a corporation chartered by the United States or a state or territory thereof, doing business in the United States, which are approved by the Board for investment.
(b) A territorial bank may invest an amount not exceeding 10% of its capital in the stock of a corporation owned entirely by banks and exclusively engaged in a trust company business and maintaining its offices on the premises used by the bank or another bank also owning part of its capital stock, or adjacent to the premises of any bank owning part of its stock, and an amount not exceeding 25% of its capital in the stock and obligations of a corporation owning the premises occupied by the bank for the transaction of its business.
(c) A territorial bank’s investment in the stock of a safe deposit company is governed by Section 106132.
(d) A bank may purchase or sell without recourse any security upon the order of a customer and for his account.
(e) A bank or trust company may purchase and sell participation in: (1) One or more evidences of indebtedness and agreements for
the payment of money; and
(2) Pools of evidences of indebtedness and agreement for the payment of money subject to regulations by the Banking and Insurance Board.
(f) A bank, subject to regulation as provided by the Banking and
Insurance Board, may acquire and lease personal property pursuant to a
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binding arrangement for the leasing of such property to a customer upon terms requiring payment to the bank, during the minimum period of the lease, of rental which in the aggregate will exceed the total expenditures by the bank for or in connection with the ownership, acquisition, maintenance and protection of the property.
(g) No bank shall own capital stock in any territorial bank.
SOURCE: GC § 30302.
2011 NOTE: Reference to the “”Banking Board”” in subsections (e)(2) and (f)
changed to the “”Banking and Insurance Board”” pursuant to P.L. 27-088:10 (May 6,
2004).