(a) (1) Common or capital stock of any institution or entity created or existing under the laws of the United States, or any state, district, or territory thereof, or of the District of Columbia or of any foreign country; provided that, with respect to at least fifty percent (50%) of the investments at cost purchased directly under this Section:

(A) the issuing institution, entity, or a predecessor thereto, has reported a profit in at least four (4) of the five (5) fiscal years next preceding the date of investment, or alternatively in at least seven (7) of the ten (10) fiscal years next preceding the date of investment; and

(B) the institution, entity or such predecessor has paid cash dividends on its common or capital stock in at least four (4) of the five (5) years next preceding the date of investment, or alternatively in at least seven (7) of the ten (10) fiscal years next preceding the date of investment; and

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(C) total cash dividends have not exceeded total earning in the five (5) years next preceding the date of investment; and

(D) on the date of investment, the issuer shall not be in default in payment of principal or interest on any of its publicly held bonds or other evidences of indebtedness; and any contingent interest, cumulative and noncumulative preferred dividends and dividends on prior common or capital stock shall have been paid in full.

(2) No more than five percent (5%) of the Fund shall be invested directly in the common or capital stock of anyone issuing domestic company described in this Section.

(b) Common or capital stock of any institution or entity created or existing under the laws of nations other than the United States; provided, that the investment agent determines that such an investment would be employed by a prudent person acting in a like capacity and familiar with such matters would use in the investment of a fund with like character and with like aims. No more than one and one-half percent (1½%) of the Fund at cost shall be invested directly in the common or capital stock of anyone issuing foreign company described in this Section.

(c) No direct investment shall be made in any one (1) issue described in this Section in an amount in excess of ten percent (10%) of such issues.

(d) Common or capital stock of any institution or entity created or existing under the laws of the United States, or any state, district, or territory thereof, or of the District of Columbia, or of any foreign country, purchased and held in investment funds authorized under § 8158, or in exchange-traded funds authorized under § 8158.1; such purchases being excluded from the limitations of § 8158(e) and § 8158.1(b).

(e) The aggregate amount of all direct and indirect investments under this Section at cost shall not exceed seventy percent (70%) of the Fund.

SOURCE: GC § 4225.14; Repealed and reenacted by P.L. 22-006:5 (Mar.
29, 1993). Subsection (a) further amended by P.L. 22-009:3 (May 7, 1993).

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Section 8157 amended by P.L. 28-136:2 (July 11, 2006). Amended by P.L.
32-086:15 (Nov. 15, 2013).

2018 NOTE: Subsection/subitem designations in subsection (a)
added/altered pursuant to authority of 1 Guam Code Ann. § 1606.

2012 NOTE: In maintaining the general codification scheme of the GCA the Compiler changed the hierarchy of subsections beginning with “”Lowercase Roman Numerals”” to “”Numbers”” in subsection (a).