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Terms Used In 12 Guam Code Ann. § 4908

  • 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.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • 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
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Trustee: A person or institution holding and administering property in trust.
(a) (1) The mortgage loan documents, with respect to a mortgage loan(s) in effect prior to the Tenant-Purchaser’s purchase of their respective units, shall provide there shall be retained over the Tenant-Purchaser’s lease term an amount held as additional security for such loan(s) called the Tenant-Purchaser Escrow Account. The Tenant- Purchaser Escrow Account will receive a predetermined portion of the Tenant-Purchaser’s monthly rental amount as provided for in § 4707(a)(2)(iv) of this Act, such portion to be determined at commencement of the Tenant-Purchaser’s
lease. The total amount contributed to the Tenant-Purchaser Escrow Account by the Tenant-Purchaser over the lease term should not be less than ten percent (10%) of the Tenant-Purchaser’s anticipated purchase price. Such Tenant-Purchaser Escrow Account shall be held by a Trustee for the benefit of the Corporation and the first mortgagee(s). The Corporation will approve such Trustee. At the time of the Tenant-Purchaser’s purchase of the respective unit, the Trustee shall release and disperse the Tenant-Purchaser Escrow Account to the unit Seller to meet the Tenant-Purchaser’s down payment requirement.

(2) The escrow amounts pertaining to various lease-to- own loans may be commingled for investment purposes. Trustees shall keep separate records showing the amount in each Tenant-Purchaser Escrow Account. Investment earnings on the Tenant-Purchaser Escrow Account shall accrue to the benefit of the Tenant-Purchaser.

(b) The Trustee shall periodically advise both the Corporation and the Seller as to the amount and earnings in each Tenant-Purchaser Escrow Account.

(c) In the event a default by the Tenant-Purchaser occurs, as provided for in § 4707(a)(5), the Trustee shall release only that portion of the respective Tenant-Purchaser Escrow Account that is needed to meet the following funding requirements:

(1) any costs incurred by the Corporation related to deferred maintenance of the Tenant-Purchaser’s respective housing unit;

(2) any costs to the Corporation due to re-advertising, administrative financial fees and other liabilities that may be a result of the Tenant-Purchaser caused default; and

(3) all funds remaining in the unit specific Tenant- Purchaser Escrow Account will be retained by the Trustee for the benefit of the next prospective Tenant-Purchaser to occupy the defaulted unit, as is intended by and provided for in § 4704(a)(5) of this Act.

2017 NOTE: Subitem designations added to subsection (a) pursuant to the authority of 1 Guam Code Ann. § 1606.2015 NOTE: Subsection designations (c) were altered to adhere to the
Compiler’s alpha-numeric scheme pursuant to the authority granted by 1
GCA § 1606.

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