(a) Which do not provide for a definite rate of return thereon shall be determined by the Board of Directors of the association during, or within thirty (30) days before the beginning of, or within thirty (30) days after the end of, each quarterly or semi-annual period. On the next business day following any such determination which provides for a change in the rate of return the Board shall mail to the Commissioner a certified copy of its resolution making the determination. The rate of return is subject to the approval of the Commissioner when an association which issues investment certificates or stock, has matured withdrawal claims.

(b) The Commissioner shall approve the rates of return on shares and investment certificates unless he finds them unfair, unjust, or inequitable, having due regard to the earnings of the association, the nature and amount of its assets and liabilities, and the amount of its undivided profits, reserves, surplus, and capital.

(c) If, within ten (10) days after the Commissioner is advised in writing of the rates of return on shares and investment certificates as determined by the Board of Directors of the association, the Commissioner has not notified the association in writing that he disapproves of such rates, the approval of the Commissioner is conclusively presumed.

(d) If within thirty (30) days after the Commissioner is advised in writing of the rates of returns on shares and investment certificates as determined by the Board of Directors of an

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association, the Commissioner and the Board of Directors have not agreed upon such rates or upon other rates, then the Commissioner shall determine the rates. In determining such rates the Commissioner shall take into consideration the earnings, nature and amount of assets and liabilities, the amount of undivided profits, reserves, surplus, and capital of the association.

(e) An association or any of its certificate holders or shareholders aggrieved by the action of the Commissioner in determining the rates of return on shares and investment certificates may at any time within ten (10) days after the determination of the rates apply to the District Court of Guam for a review of the Commissioner’s determination. The Commissioner’s determination shall not be set aside or modified unless the court finds that the Commissioner in making his determination committed an abuse of discretion.

(f) Profits and losses shall be apportioned at least annually. In computing earnings or dividends on shares, the rate shall be applied to the value of the shares, subject to regulations prescribed by the bylaws or the directors in respect to payments on such shares since the last prior apportionment.

(g) Before declaring dividends the directors shall set aside as a loan reserve any sum required by any applicable provision of this Act.

(h) Every association issuing stock may declare dividends on stock at a rate equal to that declared and paid or credited on installment shares. The association may also set aside out of the net profits at each annual distribution, an amount not exceeding one percent (1%) a year of the average loans in force during such period, or a proportionate amount at each semi-annual, quarterly, or other distribution, from which to declare additional dividends on its stock if at least one-tenth of the amount set aside is carried to stock surplus until such surplus amounts to and is maintained at a value of at least twenty-five percent (25%) of the amount set aside as a fixed and permanent capital of the association pursuant to any provision of this Act.

(i) The directors of any association issuing stock and not issuing installment shares may make, declare, and pay cash dividends, or with the Commissioner’s consent, property dividends,

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on the stock of as much of the surplus profits as appears advisable to the directors. Such dividends are subject to all the restrictions of this part on the declaration or payment of dividends.

SOURCE: GC § 41408.

2017 NOTE: Subsection designations altered pursuant to the authority of 1 Guam Code Ann. § 1606.