v. c. ~Y'£..~>

Vice~a.:~r

Is! A. S. N. Duenas1.J j

A. $. Ii. L\.f.jt.~~hJ.aUw Sccretl!ty

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Thi~ Act ~ ,~I¥eG by • ~mM thi~. _. /.~,( .rf.1~of ) (( I /., "96!i ~t /{ ." " 0"100.:, / ,..____ 11 •. l T •••••••••

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/s/ RUPOLPH G. SABLAN

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/s/ MANUEL F. L. GUERRERO,NANUEL F. L. GUERRERO

~rnor or ~

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DAti..1>: .t I,' ,~ •• , •" lflr- f~d : (J!- l: I I) •IT

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• 25 1986

~uAV 'flutRIT(jR\I\L (••• " uaaAaY

Public Law 8-79

ICi 11 fJo. Z15

(} Qm 1 GU/J/; lLCl St..\ l'Jilt:1%5 (FIRST) RCGUlMt SESSlm~

IntrodJced by ~ -_Carlos P. &1rd3.lloPaul f.\ CalvoCarl~ C. ~1Ctr:>Antonio s. I'~. 1lrenasAlberto T. la"JOrerk1t'.urt Scot t ~ft8nFrancl~o D. PerezC. Ricardo salas

Viccnt~ c. Rey~5TcnJS R. SantO$

Cdrlo~ s. T~aRaymol'i.1 F. lind;;n~oij

•

hN ;.CT ro M;[ID $Em ON 4225 C~IC, 111,) TO NJJ A '&Eli

SECnGi:4225.1 Te, Qt;~Tt:R 3,. TITlE V, 11[ l1JViro:DITCGD.: or GU41, Pa.iT1\!: 10 Ri:srnv~sOf' 11£ RCTlRSvilITFUim.

~",1

1 ~ IT £~iACTCO BY llE. p.:oru: or 1i i[ f;.P.:1I ro~ OF GUAl'l:

2 Section 1. ~tlon 4ZQ or the Gover'J"r.'f.mt Co~ of Q..IJ::I Is rere-by Qr.}~rded

6

7

(a) 1h: reserves or the fmd In exce~5 of reqJi ra"'>f1ts for current

operations shJll be v:;;tcd In bonds or securi ties w)ich arc secured or g.:arant~ ~5 to

principJl lYl tl~ Ulitect Stotes, or bonds or otrn:-r Intere::>t bearing ob110J:!tloos or the

e il Goverment of CuJtJ w1ich arc ~iJr.;nt~d ~ to prlndpJI .and Interest by thE gove~nt

9 II of QJ,..~or In tinv.? o..%it occwrib ~ith Wt'J leMing InstitJtlcr.:; q.HlItie-d and admitted

10 II to c:) wsire~~~in O.J3~:."

11 ire Board ~!1J11mve full pOI-~rto hold,. purcruse. &~11, a$SItJ'l, trar6fcr

12 er.d di5p~ of ani of tl1'.' ir.vcstm:;-nts th.1t It ~h;J1 tkl~ acqJi red, (1:) ~1l as the pro·

13 II c~"ds thi:r~or cx:evt J~ otherHi~~ provl(j(:d. All b~Xld:;:ir.Jll b-~acq;i red L:t prices not

14 II exceeding the prcvJIl in;) rzl,Jr'"et VJllJ':5 for SUCh5ccuri ti;-:.. /.11 inve~tm~nts shill1 be

15 II clclrly m.:rkro to indicat~ o.·mr::,hipb'j tl~ ward and to tf~ exterv pO$slble sh::ll tP.

16 II rt;;isterc:u in the n:tX of tt«; BoJrJ.

17 Uo ~:tr:r cf tl~ Board m1'j OJ e1~loY':t of Ii¥.: Boarcl zhall t1;;vC ?Jt>.ldi rc::'t

1S or Injin~t Intertst In th~ IncCJ'J)o~, GJir&or proO ts 0:1 an; Invcstm~nt 1:iZ!X- by the IXk;rd.

19 1\ nor shan CJfri such pe"'~on rccciv!: ~! pay or cmoll¥~~t for $ervic~5 in corn'Ction wi tft

20 II tmy Invest~~t ~ ,,} W Buard. t~ wct1 E\ei:ber or e:!ploy~ shull bec~~ an endorser

Z1 II or sur~ty or in 0Ir-} ~r an obHg:r for rtJY."~'i lO:1mdby or borroaed frCf;1 the fund.

22 II ' All int~rest deriv::d froo Invc:;tr.Y:nts, iY':d any ~11n5 fro:~ tht' sale cr"

,- ]234567C910111213141516171019~J21222321.2:)262728293:)313233

1 i(b) The BOJrd cay with the approval of th~ Governor 0I11J concurrence of th~ Co::r.i He:: \ \ ~

on RulC$ of the Guam leglslzture contract with any lending Institution qu~llfied and a~itte

to do busln::~s In Cuu.'11 for the dep~i t of reserves of the: fund In exce5S or rCQUIre~nts for

current operations. All such deposits zl~ll not exceed twenty-five per cent (~) of said

res~rve5 n:>r In ~ event exceed the SUiJ of T~!{)~iill ion Dollars ($2,000#000). /.rty loss of

the fund incurred In the saic of bonds or securi ties for the purpose of I:'tJking the deposit

above sl1all be an obllQ;Jtion of the government and shall b~ paid to tt~ fund through

app rop r iat Ion.

(c) ~ de-posi t prcvldtd for in sub5cctlon (b) hereof shall be us~d to gJarantee only

loans for residential Ol~~r occupied hor.~~lOCJted in th~ Municipalities of Yon~ and Sinajana

and othtr areJS wi thin the terrl tory of Guam. Any such loan shJll not be rnexic until tiri tten

approval of the ~plicant is obtained by the lendin;) il15titutlon fro:1 the Gu~j Finance and

D2vclopment Corporation.

(d) In the event that any loan provided for above under subsection (b) and (c) Is In

ck'f()Ult for over nll1ft)' (9J) day:;, th~ lending Inst! tution shall notify In ~riting the Gua:::

finance imct DcvelopT!'~nt Corporation, shall assign any mortgage or other security to the said

corporation und may deduCt from the deposit the outstanding bali1nce of t~ loco. The

govcrn.;i~nt of Guar.!guarJntc.:~ th(' integri ty of u~ d-~sl t and upon deduction as provid~d,

th~ Director of Finance Is hereby authDrized to transfer from the lo~n GU3r~ntc~Deposit

Fun:) Ir~relnJftcr established arrj SllJ! nec~ssary to relr:t>urse the deposit." .

Section 2. t. 11C1·; Sect! on 4225.1 is hereby Gdd~ci to Chapter 3, TI tIe V, Covem-;\2nt Code

of GuJ:'1i, to re;1d as f 011 Or~ :

"Sect ion 42Zl.1. LOJl1 G:.JarJntr.t lkposi t fund.

(a) There i~ t~r~by est;~blished the lozn GuJrW1tc~ ~~osit Fund ~ilicl1 sholl be main-

t.1lrY.:u ~Jrat~ and ~Jrt fro::1 any other funds of th:: govemr.1cnt of G!.J{i::IDI1d In<i."endenl

records znd (Accounts stk:l1 b:: r.13inlJI~d in Con:'1~ct ion th·~reHI tho

(b) Tnc Tre~rer of Gu3r;J 15 hereby authorized to tral15fe-r to tre loan Guatant~

fY.>po~itFund fro:':"1oth~rHI~~ un~j)rQt)riatcd funds in th~ territory of Gu.;mthe soo of fift/

tOO'JSaTY.!dollars ($~~OOO) ~.hlcli shall constitute tht> Initial cc,')ltal of SJld fund."

Sc·ctlon 3. £xplrJtion D3te. The pro\'l!.ions of this Act shall expire five (5) years ,'.

froD the date of ~prov(11 thereof by the Governor; ho'-.'ever, any {lUJranteed Obligations of the I ti,d~oslts ~JtstJndlng at the tim~ sl~11 contlnu~ until ti1e expirotion thertof and sufficient

fu~ tv ~ct such cbll~Jtio~; shJll be ~int1lned In tl~ dbposlt.