11 Guam Code Ann. § 106504
Terms Used In 11 Guam Code Ann. § 106504
- 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.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Trustee: A person or institution holding and administering property in trust.
(a) Is an officer, director or employee of a directly competitive bank.
(b) Has been convicted of an offense constituting in the jurisdiction in which the judgment was rendered a violation of the banking laws, a felony having as one of its necessary elements a fraudulent act or an act of dishonesty in the solicitation of, accep- tance, custody, or payment of money or property or a breach of trust.
(c) Is indebted to the bank for more than thirty (30) days upon a judgment that has become final.
(d) Has an interest adverse to the bank unless such interest is promptly and fully disclosed in writing to its board of directors or trustees.
SOURCE: GC § 30804. Subsection (2) amended by P.L. 13-187:196. P.L. 23-
127:2 renumbered this section from § 106505 to § 106504. Original § 106504 (GC
§ 30803) was repealed by P.L. 23-127:2 and subsequent sections were renumbered accordingly.
2013 NOTE: Pursuant the authority granted by 1 Guam Code Ann. § 1606, numbers and/or letters were altered to adhere to the Compiler’s alpha-numeric scheme.
§ 106505. Unlawful Gratuity or Compensation; Transactions of
Persons Connected with Territorial Bank.
(a) It shall be unlawful for an affiliate of a bank or for an officer, director or employee of a bank or affiliate of a bank:
(1) To solicit, accept or agree to accept, directly or indirectly, from any person other than the institution any gratuity, compensa- tion or other personal benefit for any action taken by the institution or for endeavoring to procure any such action.
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CH. 106 BANKS
(2) To have any interest, directly or indirectly, in the proceeds of a loan or of a purchase or sale made by the bank, unless such loan, purchase or sale is expressly authorized by this Title or by rule of the Board and is approved in advance by vote of two-thirds of all the directors of the bank, any interested director or trustee taking no part in such vote.
(3) To have any interest, direct or indirect, in the purchase at less than its face value of any evidence of indebtedness issued by the institution.
(4) To discount or make any loan, directly or indirectly, upon any note or other evidence of indebtedness known to have been offered to the institution for discount or as security for a loan and to have been refused by it.
(b) In this section and § 106504 the term affiliate shall include:
(1) Any person who holds a majority of the stock of a bank or has been determined by the Board to hold a controlling interest therein, any other corporation in which such person owns a majority of the stock and any partnership in which he has an interest.
(2) Any corporation in which the institution or an officer, director or employee thereof holds a majority of the stock and any partnership in which such person has an interest.
(3) Any corporation of which a majority of the directors are officers, directors or employees of the institution or of which officers, directors, trustees or employees constitute a majority of the directors of the institution.
SOURCE: GC § 30805. P.L. 23-127:2 renumbered this section from § 106506 to § 106505.