In cases of demonstrated need, loans or loan guarantees not secured by real property interests may be made to members of the Retirement Fund who are then currently employed by the government of Guam for the purpose of facilitating purchase and ownership of single-family residential units located in Guam, to be occupied by such members, or for repairs, remodeling or extension of single-family units, provided that:

(a) Such loans or loan guarantees shall be referred to herein as supplemental loans;

(b) The long-term financing for such residential units is arranged by a qualified institutional lender subject to the approval of the Board of Trustees of the Retirement Fund;

(c) The term of a supplemental loan or loan guarantee may not extend beyond the normal or elected early retirement date of a borrower, or fifteen (15) years, whichever is earlier;

(d) Supplemental loans or loan guarantees shall be an amount of fifteen percent (15%) or less of the fair market value, as established by a qualified real estate appraiser acceptable to the Board, of the residential unit to be purchased, repaired, remodeled or extended by the member;

109

COL 8/23/2023

4 Guam Code Ann. PUBLIC OFFICERS & EMPLOYEES
CH 8 RETIREMENT OF PUBLIC EMPLOYEES

(e) No loan or loan guarantee shall exceed an amount equal to one hundred twenty-five percent (125%) of the lump sum cash amount which would be payable under the provisions of the Retirement Plan to such a member if he were to terminate his employment on the date of his supplemental loan or loan guarantee application. Supplemental loans or loan guarantees shall be made to members of the Fund who have served the government of Guam and contributed to the Fund at least five (5) years and have at least Two Thousand Five Hundred Dollars ($2,500) in membership contribution;

(f) All payments for principal, interest and other charges owing with respect to a supplemental loan or loan guarantee shall be withheld from the salary of the borrower by the government of Guam for the Retirement Fund and remitted directly to said Fund;

(g) Each loan or loan guarantee shall be secured by an absolute assignment of the entire present and future interest of the borrowing member in the Retirement Fund, and by an absolute assignment of any other amounts payable or to be payable to such member by the government of Guam or any department or agency thereof upon termination of employment of the member;

(h) Credit life insurance and disability insurance or an approved equivalent, payable to the Retirement Fund in the event of death or permanent disability of borrowing members, shall be procured and maintained by the Board of Trustees of the Retirement Fund in behalf of, and at the expense of the borrower, in amounts determined by the Board;

(i) Financing under this Subsection shall be administered in accordance with policies and procedures established by the Board.

SOURCE: GC § 4225.17, as added by P.L. 13-056 (Sept. 22, 1975).

2022 NOTE: Reference to “”Territory”” omitted pursuant to 1 Guam Code Ann. § 420.

110

COL 8/23/2023

4 Guam Code Ann. PUBLIC OFFICERS & EMPLOYEES
CH 8 RETIREMENT OF PUBLIC EMPLOYEES