Chapter 103

11 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 1 CHAPTER 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE SOURCE: P.L. 11-129 (Apr. 10, 1972) repealed and reenacte d Title XXXI of the Government Code (§§ 30000 - 30902 ). Article II (§§ 30010 - 30021) of said title was later codif ied in the Guam Code Annotated as 11 GCA, Ch. 103. P.L. 27-088:2 ( May 5, 2004) repealed and reenacted the entire Chapter thereby a dding §§ 103113 - 103120. Amendments are indicated within t he related sections. 2015 NOTE: P.L. 32-325:2 (Jan. 2, 2015) added § 103121. Codified as 22 GCA § 18901 by the Compiler pursuant to the authority granted by 1 GCA § 1606. § 103101. Establishment. § 103102. Banking and Insurance Commissioner. § 103103. Banking and Insurance Board. § 103104. Powers of Board and Commissioner. § 103105. Order of the Commissioner. § 103106. Hearing. § 103107. Enforcement of Orders. § 103108. Court Review. § 103109. Other Employees. § 103110. Banking or Insurance Interests of Officer s and Employees. § 103111. Bond. § 103112. Limitation of Personal Liability. § 103113. Fees to Defray Expenses of Division. § 103114. Commissioner’s Annual Report.

g or Insurance Interests of Officer s and Employees. § 103111. Bond. § 103112. Limitation of Personal Liability. § 103113. Fees to Defray Expenses of Division. § 103114. Commissioner’s Annual Report. § 103115. Examinations and Reports. § 103116. Records of the Division. § 103117. Preservation of Records. § 103118. Standards in Regulations. § 103119. Practices Injurious to Free Competition. § 103120. Creation of the Banking and Insurance Enforcement Fund. § 103101. Establishment. There is, within the Division of Insurance, Securit ies and Banking of the Department of Revenue and Taxation, an Office of the Commissioner of Banking and Insurance that s hall be charged with supervising banking and insurance acti vities in COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 2 Guam as provided in this Title, and in other legisl ation conferring jurisdiction upon the office. (a) For the purposes of this Chapter and unless otherwise specified, all references to banks and ba nking shall include, where applicable, banks, savings and loans, finance companies, mortgage brokers, credit unions, pawnshops, check cashing companies, foreign exchang e

l references to banks and ba nking shall include, where applicable, banks, savings and loans, finance companies, mortgage brokers, credit unions, pawnshops, check cashing companies, foreign exchang e companies and the like, including any entities that make loans, accept deposits, sell notes, corporate paper , debentures or similar instruments, transmit funds, own or operate automated teller machines ( >ATMs =) services, also known as >customer/bank communication terminals = (>CBCTs =), >electronic terminal devices =, >cash dispensing machines = and >cash machines =, or otherwise engage in any banking related activity. (b) For the purposes of this Chapter and unless otherwise specified, insurance organizations subjec t to regulation include carriers, general agents, subage nts, solicitors, brokers and claims adjusters. § 103102. Banking and Insurance Commissioner. There shall be a Commissioner of Banking and Insura nce who shall be appointed by I Maga’lahen Guåhan (the Governor of Guam), with the advice and consent of I Liheslatura (the Legislature), and who shall serve under the directi on of the Director of Revenue and Taxation.

ointed by I Maga’lahen Guåhan (the Governor of Guam), with the advice and consent of I Liheslatura (the Legislature), and who shall serve under the directi on of the Director of Revenue and Taxation. (a) The Commissioner shall be the primary regulator of Guam banking and insurance institutions, and shall have the authority expressly conferred by or reasonably impl ied from the provisions of this Chapter. (b) The salary of the Commissioner shall be equival ent to the salary of the Director of Revenue and Taxati on. (c) The Commissioner shall have the following minimum qualifications; a total of ten (10) years o f experience in a managerial position in any of the f ollowing areas: (1) credit risk, loan portfolio quality, payments, liquidity management, asset funding, investment COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 3 banking and securities, bank operations, and/or regulatory compliance in a bank chartered by the United States or one (1) of its states or territori es or Guam; or (2) administration, sales, law, counseling, education, actuarial, and/or regulatory compliance in an insurance company, brokerage or agency registere d

e (1) of its states or territori es or Guam; or (2) administration, sales, law, counseling, education, actuarial, and/or regulatory compliance in an insurance company, brokerage or agency registere d to do business in the United States or one (1) of i ts states or territories or Guam; or (3) experience in a management or supervisory position within a government agency or other regulatory body with responsibility and authority f or oversight, regulation and compliance activities of institutions and organizations in § 103102 (c)(1) a nd § 103102 (c)(2). (d) The Commissioner shall perform all duties imposed upon him by the provisions of this Title, a nd other laws regulating banking and insurance in Guam and s hall enforce all such provisions and laws. (e) The Commissioner’s powers extend to any and all entities, whether or not the entity is a bank, or i s partially- owned or controlled by a bank, to the extent that t he entity engages in an activity that is permissible to banks pursuant to Section 106191 of Title 11 of the Guam Code Anno tated. Any and all banks are subject to the powers of the Commissioner.

at t he entity engages in an activity that is permissible to banks pursuant to Section 106191 of Title 11 of the Guam Code Anno tated. Any and all banks are subject to the powers of the Commissioner. The Commissioner shall have the powe r to require a bank subject to his powers to: (1) Maintain its accounts in accordance with such regulations as he may prescribe having regard to th e size of the organization and the nature of its oper ations. (2) Observe methods and standards which he may prescribe for determining the value of various type s of assets. (3) Charge off the whole or part of an asset which at the time of the Commissioner’s action could not lawfully be acquired. (4) Write down an asset to its market value. COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 4 (5) Record liens and other interests in property. (6) Obtain a financial statement from a prospective borrower to the extent that the bank ca n do so. (7) Obtain insurance against damage to real estate taken as security. (8) Search, or obtain insurance for, the title to r eal estate taken as security.

orrower to the extent that the bank ca n do so. (7) Obtain insurance against damage to real estate taken as security. (8) Search, or obtain insurance for, the title to r eal estate taken as security. (9) Maintain adequate insurance against such other risks as the Commissioner may determine to be necessary and appropriate for the protection of depositors and the public. (f) The Commissioner =s powers extend to any and all insurance entities, and he may examine, or cause to be examined, the books, papers, and property, and into the affairs of any insurer, broker, agent, solicitor, o r rating bureau, or any person engaged in organizing, promot ing, or forming any insurer, as the Board considers proper to determine whether any person has violated any provi sion of this Title and other laws relating to the business of insurance, and generally he may make such examinati ons, conduct such inquiries, and hold such hearings as a re specifically provided for in this Title or as are r easonably necessary for the proper discharge of his duties. (g) In connection with any such examination, inquir y, or hearing, the Commissioner shall have the power t o administer oaths; to summon and compel

y necessary for the proper discharge of his duties. (g) In connection with any such examination, inquir y, or hearing, the Commissioner shall have the power t o administer oaths; to summon and compel the attendan ce of witnesses; to examine under oath all persons having information or believed by him to have information concerning the affairs of any insurer, broker, agen t, solicitor, or rating bureau, or any person engaged in organizing, promoting or forming an insurer, or any person whom the Commissioner believes is violating any pro vision of this Title and other laws relating to the busine ss of insurance, and to compel such person to produce any books or papers under his custody or control relevant the reto. COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 5 (h) If there should be a vacancy in the office of t he Commissioner, the Director shall serve as Acting Commissioner. SOURCE: Added by P.L. 27-088 (May 6, 2004). Subsection (c) amended by P.L. 29-113:VI:40 (Sept. 30, 2008). Sub section (d) amended by P.L. 28-177:3 (Dec. 29, 2007). § 103103. Banking and Insurance Board.

RCE: Added by P.L. 27-088 (May 6, 2004). Subsection (c) amended by P.L. 29-113:VI:40 (Sept. 30, 2008). Sub section (d) amended by P.L. 28-177:3 (Dec. 29, 2007). § 103103. Banking and Insurance Board. (a) There is hereby established in the Office of th e Commissioner of Banking and Insurance, a Banking an d Insurance Board that shall supersede the Banking Bo ard, which shall consist of the Commissioner and nine (9) memb ers. The Commissioner shall be Chairman. (b) The nine (9) members shall be appointed by I Maga =lahi (the Governor) with the advice and consent of I Liheslatura (the Legislature), in conformance with the requirements of 4 GCA § 2105: (1) There shall be three (3) members who are execut ive officers of entities chartered as banks and license d to conduct business on Guam, at least one (1) of which shall be a state bank as defined in §100102 of this Title ; (2) There shall be three (3) members who are execut ive officers of insurance businesses licensed to conduc t business on Guam; (3) There shall be three (3) members who are not directors, trustees, officers, employees or stockho lders of any entity chartered as a bank, or any entity engag ed in the insurance

business on Guam; (3) There shall be three (3) members who are not directors, trustees, officers, employees or stockho lders of any entity chartered as a bank, or any entity engag ed in the insurance business, one (1) of whom must be an atto rney admitted to practice law on Guam, and only one of w hom shall be a classified employee of the government of Guam. (c) Six (6) members shall constitute a quorum. All decisions made by the Board shall require six (6) affirmative votes. (d) The term of office of each member shall be six (6) years except the initial appointments to the Banking and Insurance Board shall be for the following terms as designate d by I Maga =lahi : (1) five (5) members for a term of three (3) years; and COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 6 (2) four (4) members for a term of six (6) years. Thereafter, the term of office of each member shall be six (6) years. (e) I Maga =lahi [The Governor] may, after notice and hearing, remove a member for cause. Failure to att end two (2) consecutive legally called Board meetings shall ser ve as sufficient cause for removal.

Maga =lahi [The Governor] may, after notice and hearing, remove a member for cause. Failure to att end two (2) consecutive legally called Board meetings shall ser ve as sufficient cause for removal. (f) The Board shall meet at least once in each cale ndar quarter. The Commissioner may call additional meeti ngs of the Board and shall do so upon the request of two (2) m embers. Public notice for all Board meetings shall be given pursuant to the provisions of the Open Government Law. (g) No member shall participate in a proceeding bef ore the Board to which any corporation, partnership or unin corporated association of which he or she is or was at any tim e in the preceding twelve (12) months a director, officer, p artner, employee, member, or stockholder is a party. A mem ber may disqualify himself or herself from participating in a proceeding for any other cause deemed by him or her to be suff icient. (h) At any meeting at which a quorum is not present , whether by reason of the inability of a member to p articipate or his or her voluntary disqualification, or otherwise , I Maga =lahi may designate the Director, or the head of any othe r department of the government of Guam, in

bility of a member to p articipate or his or her voluntary disqualification, or otherwise , I Maga =lahi may designate the Director, or the head of any othe r department of the government of Guam, in that order, as acting members of the Board for the purpose of constituting a quorum, but he or she shall not designate more acting members than shall be necessary to constitute a quorum. (i) The Division shall provide such clerical, techn ical and legal assistance as the Board may require. (j) If the employment status of any member of the B oard should be modified during the member =s appointed term, such that the member would no longer meet the qualificat ions contained in this § 103103, said individual shall n o longer serve on the Board. (k) Any vacancy in Board membership shall be filled in conformance with the appointment and confirmation p rovisions of this § 103103 to serve the remainder of the term so vacated. COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 7 § 103104. Powers of Board and Commissioner. (a) In addition to other powers conferred by this T itle, the Board shall have the power to: (1) Regulate its own procedures and

OF BANKING AND INSURANCE 7 § 103104. Powers of Board and Commissioner. (a) In addition to other powers conferred by this T itle, the Board shall have the power to: (1) Regulate its own procedures and practices in accordance with the Administrative Adjudication Act . (2) Implement by regulation not inconsistent with l aw, any provision of this Title, and to define any term not defined in this Title as may be reasonably necessar y or appropriate for the administration of this Title an d other laws of Guam relating to banking and insurance. Suc h regulations shall be promulgated, amended, or repea led in accordance with the Administrative Adjudication Act . (3) Relative to banking, the Board may: (A) Restrict the withdrawal of deposits from all or one or more territorial banks where the Board finds that extraordinary circumstances make such restrict ions necessary for the proper protection of depositors i n the affected institution; (B) Authorize a territorial bank until the close of the next regular session of I Liheslatura to participate in a public agency hereafter created under the laws of Guam or of the United States, the purpose of which is to afford advantages or safeguards to

next regular session of I Liheslatura to participate in a public agency hereafter created under the laws of Guam or of the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors and to comply with all requirements and conditions imposed upon such participants; and to engage in any banking activity in which banks subje ct to the jurisdiction of the Federal government may hereafter be authorized by Federal legislation to engage; (C) Order the holder of shares in a territorial ban k to refrain from voting said shares on any matter if it finds that such order is necessary to protect the institution against reckless, incompetent or carele ss management, safeguard the funds of depositors, or prevent the willful violation of this Title or of a ny lawful rule or order issued thereunder. In such a case, the shares of such a holder shall not be counted in COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 8 determining the existence of a quorum or a percenta ge of the outstanding shares necessary to take any corporate action; or (D) Order any person to cease violating a provision of this Title or a

CE 8 determining the existence of a quorum or a percenta ge of the outstanding shares necessary to take any corporate action; or (D) Order any person to cease violating a provision of this Title or a lawful regulation issu ed thereunder or to cease engaging in any unsound banking practice. (4) Relative to insurance, the Board may: (A) Enter into contracts for services with a Certified Financial Examiner in good standing with the Society of Financial Examiners and with an Actuary in good standing with the American Academy of Actuaries in the examination of insurance companies ; (B) Institute such actions or other lawful proceedings as it may deem necessary for the enforcement of provisions of this Title and other l aws regulating insurance in Guam or any order or action made or taken by the Commissioner in pursuance of law; or (C) If finding reason to believe that any person has violated any provisions of this Title and other laws regulating insurance in Guam, for which criminal prosecution is provided and in the opinion of the Commissioner would be in order, such information relative thereto shall be transmitted to the Attorn ey General.

nsurance in Guam, for which criminal prosecution is provided and in the opinion of the Commissioner would be in order, such information relative thereto shall be transmitted to the Attorn ey General. (5) Affirm, reverse or stay the enforcement of any order or ruling of the Commissioner. (6) Establish such rules and regulations in accorda nce with the Administrative Adjudication Act as may be necessary for the operation and management of banks . (b) The Board may remove a director, trustee, offic er or employee of a territorial bank who becomes ineligib le to hold his or her position or, who after receipt of an order t o cease under the preceding Subsection, violates this Title or a lawful regulation or order issued thereunder or who is dis honest or who is reckless or grossly incompetent in the conduct o f banking COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 9 business. It shall be a criminal offense against t his Title for any such person, after receipt of a removal order, to p erform any duty or exercise any power of any territorial bank for a period of three (3) years.

ll be a criminal offense against t his Title for any such person, after receipt of a removal order, to p erform any duty or exercise any power of any territorial bank for a period of three (3) years. A removal order shall specify the grounds thereof and a copy of the order shall be sent to th e bank concerned. The Board may recommend removal of a dir ector, trustee, officer or employee of a national or state bank. (c) Notice and hearing shall be provided in advanc e of any action taken by the Board. In cases involving extra ordinary circumstances requiring immediate action, the Board may take such action but shall promptly afford a subsequent hearing upon application to rescind the action taken. (d) Members of the Board shall have access to any r ecord of the Division, with reference to banking and insuran ce matters. (e) The Commissioner and the Board shall have the p ower to (1) subpoena witnesses, (2) compel their attendance, (3) require the production of evidence, (4) administer an oath and (5) examine any person under oath in connection wi th any subject relating to a duty imposed upon or a po wer vested in the Commissioner or the Board.

oduction of evidence, (4) administer an oath and (5) examine any person under oath in connection wi th any subject relating to a duty imposed upon or a po wer vested in the Commissioner or the Board. These powers shall be enforced by the Superior Cour t of Guam. An individual who claims privilege against self-inc rimination may nevertheless be compelled to testify, but he or she shall not be prosecuted or subjected to a penalty or forfeitu re on account of anything concerning which he or she has testifie d under such compulsion, except for perjury committed in his or her testimony. Removal from an office or employment wi th a territorial bank or insurance company is not the im position of a penalty or forfeiture. (f) The Board may, on petition of any interested pe rson and after hearing, issue a declaratory order with respe ct to the applicability to any person, property or state of f acts of this Title or a rule issued by the Board. The order shall bin d the Board COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 10 and all parties to proceeding on the state of facts alleged unless it is modified or reversed by a court having jurisdict

FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 10 and all parties to proceeding on the state of facts alleged unless it is modified or reversed by a court having jurisdict ion. A declaratory order may be reviewed and enforced in t he same manner as other orders of the Board, but the refusa l to issue a declaratory order shall not be reviewable. (g) No person shall be subjected to any civil or cr iminal liability for any act or failure to act made in goo d faith and in reliance upon an existing order, regulation or defi nition of the Board notwithstanding a subsequent decision by a co urt invalidating the order, regulation or definition. (h) The Board shall continuously review the provisi ons of this Title and other laws regulating banking and in surance in Guam and may, from time to time, make recommendatio ns for changes therein to I Maga =lahi and I Liheslatura in the Commissioner =s Annual Report. 2015 NOTE: Subsection designations in (a)(3) and (4) were al tered to adhere to the Compiler’s alpha-numeric scheme pursu ant to 1 GCA § 1606. § 103105. Order of the Commissioner.

r =s Annual Report. 2015 NOTE: Subsection designations in (a)(3) and (4) were al tered to adhere to the Compiler’s alpha-numeric scheme pursu ant to 1 GCA § 1606. § 103105. Order of the Commissioner. (a) Any finding, decision, or order of the Commissi oner shall be effective only when in writing and signed by the Commissioner. Orders shall be filed in the Division of Insurance, Securities and Banking of the Department of Revenue and Taxation. (b) Every such order shall state: (1) Its effective date; (2) Its intent or purpose; (3) The grounds on which it is based; and (4) The provisions of this Title and other laws regulating banking or insurance in Guam pursuant to which action is taken or proposed to be taken. (c) Except as may be provided in the provisions of this Title and other laws regulating banking or insuranc e in Guam respecting particular procedures, an order or notic e may be given by delivery to the person to be ordered or notified or by mailing it by certified or registered mail, return receipt requested, COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 11 postage prepaid, addressed to the person at the res idence or

gistered mail, return receipt requested, COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 11 postage prepaid, addressed to the person at the res idence or principal place of business of the person as last o f record in the Department. Notice so mailed shall be deemed to ha ve been given when deposited in a letter depository of a Un ited States post office. § 103106. Hearing. Within ten (10) days after the serving of notice of any order by the Commissioner, any person adversely and direc tly affected thereby may request a hearing on the subject of the order before the Commissioner. A final order shall be made with in ten (10) days after the close of such hearing. § 103107. Enforcement of Orders. If any person fails to comply with an order that ha s become final, the Commissioner may apply for the enforceme nt of the order to the Superior Court of Guam. If the Court determines that the order was made and served in accordance wi th the law and that such person failed to comply therewith, th e court shall enforce obedience to the order by writ of injunctio n or otherwise to enjoin upon such person compliance with the orde r. § 103108.

w and that such person failed to comply therewith, th e court shall enforce obedience to the order by writ of injunctio n or otherwise to enjoin upon such person compliance with the orde r. § 103108. Court Review. Any person aggrieved and directly affected by an or der of the Board may appeal to the Superior Court of Guam, within thirty (30) days after issuance of the order. The f iling of a petition for review shall not stay enforcement of a n order, but the Court may order a stay upon such terms as it deems proper. § 103109. Other Employees. All officers and employees of the Division of Insur ance, Securities and Banking, other than the Commissioner , shall be in the classified service. The Commissioner may delega te to any officer or employee of the Division any of his or h er powers and may designate any officer or employee of the Divisi on to perform any of his or her duties. § 103110. Banking or Insurance Interests of Officer s and Employees. (a) No employee of the Division shall be an offic er, director, trustee, attorney, owner, shareholder, pa rtner, broker, COL11/8/201911 GCA FINANCE & TAXATION CH.

nterests of Officer s and Employees. (a) No employee of the Division shall be an offic er, director, trustee, attorney, owner, shareholder, pa rtner, broker, COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 12 agent, solicitor, employee or representative of any bank or insurance company, or, except as hereinafter provid ed, receive, directly or indirectly, any payment or gratuity fro m any such organization, or be indebted to any bank or insuran ce company, or engaged in the negotiation of loans or contract of insurance for others with any such bank or insurance company. (b) This provision shall not prohibit being a depos itor or insurance policy holder on the same terms as are av ailable to the public generally, or being indebted to a bank on th e same terms as are available to the public generally, including , but not limited to, a mortgage loan upon the mortgagor’s own home, and installment debt of a personal nature. § 103111. Bond. (a) The Commissioner shall be bonded with a good an d sufficient surety, as the Board shall determine and shall fix, conditioned that he or she shall faithfully account for and dispose of any funds and

) The Commissioner shall be bonded with a good an d sufficient surety, as the Board shall determine and shall fix, conditioned that he or she shall faithfully account for and dispose of any funds and securities received into his or he r custody or control, in accordance with applicable law. (b) All officers and employees of the Division of I nsurance, Securities and Banking handling money or securities in the course of their duties, shall be bonded with a good and sufficient surety, in such amount as the Board shall determine and shall fix. § 103112. Limitation of Personal Liability. No member of the Board or officer or employee of th e Division shall be liable in any civil action for da mages for any act done or omitted in good faith in performing the functions of his or her office. § 103113. Fees to Defray Expenses of Division. (a) The Commissioner shall charge an examination fe e based on cost per hour per examiner, plus travel, p er diem and other related expenses for all institutions examine d by him/her or his/her staff. (b) The Board may implement by regulation not inconsistent with law additional fees as may be rea sonably necessary or appropriate for the administration of

ons examine d by him/her or his/her staff. (b) The Board may implement by regulation not inconsistent with law additional fees as may be rea sonably necessary or appropriate for the administration of this Title and other laws of Guam relating to banking and insuranc e. Such COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 13 regulations shall be promulgated, amended, or repea led in accordance with the Administrative Adjudication Act . (c) Such fees shall be paid directly to the Banking and Insurance Enforcement Fund. § 103114. Commissioner’s Annual Report. (a) The Commissioner shall report to I Maga =lahi and I Liheslatura annually, within sixty (60) days after the end of each fiscal year. His/her report shall include: (1) The text of all rules of the Division of genera l application adopted or altered since his/her last p revious report. (2) Recommendations for legislation. (3) A statement of the status and remaining assets and liabilities, as of the date of the most recent repo rt of condition, summary of all changes occurring since h is/her last previous report by reason of opening new terri torial banks, mergers and conversions,

ies, as of the date of the most recent repo rt of condition, summary of all changes occurring since h is/her last previous report by reason of opening new terri torial banks, mergers and conversions, and increases and decreases in capital of all banking organizations u nder the purview of the Commissioner. (4) A statement of the status, assets and liabiliti es, report of condition, and increases and decreases in capital of all other entities herein referenced as banks and n ot covered by Item (3) in this Subsection, based on criteria d etermined by the Commissioner. (5) A tabulated statement and synopsis of the repor ts which have been filed in his/her office showing the conditions of every admitted insurer, the general c ondition of the insurance business and interests in Guam, an d other matters covering insurance, for the preceding year. § 103115. Examinations and Reports. (a) The Commissioner need not examine or cause to b e examined any financial institution that is regulate d by the FDIC, the Board of Governors of the Federal Reserve Bank, or the Office of the Comptroller of Currency, so long as t he financial institution has received a satisfactory rating or i ts equivalent

the FDIC, the Board of Governors of the Federal Reserve Bank, or the Office of the Comptroller of Currency, so long as t he financial institution has received a satisfactory rating or i ts equivalent by the regulatory agency. COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 14 (b) The Commissioner may accept, adopt, or use in l ieu of an examination prescribed herein, all or any part o f the results of an examination conducted by a Federal regulatory ag ency of a Guam financial institution for the same period or s ubject matter that would be covered by an examination required or permitted under this Article. (c) In the event that the Commissioner has not rece ived a satisfactory or equivalent rating by a territorial bank =s primary safety and soundness regulator for the most recent examination period, the Commissioner shall examine the conditio n of each territorial bank at least once in each calendar yea r and shall require each such organization to submit a report o f its condition as of such dates as he or she may fix at least twic e in each calendar year.

al bank at least once in each calendar yea r and shall require each such organization to submit a report o f its condition as of such dates as he or she may fix at least twic e in each calendar year. Only summary examinations and repor ts shall be required in respect of fiduciary activities that ar e subject to court accounting. A report of examination shall be sent t o the organization examined. (d) In the event that the Commissioner has not rece ived a satisfactory or equivalent rating of a corporation by its primary safety and soundness regulator for the most recent examination period, the Commissioner may examine any corporatio n the majority of the stock of which is owned by a territ orial bank or which is found by the Board to be controlled by a t erritorial bank. (e) In the event that it has not received a satisfa ctory or equivalent rating by its primary safety and soundne ss regulator for the most recent examination period, the Commiss ioner shall examine the condition of each state chartered bank authorized to do business on Guam in conjunction with the examina tion performed by the Federal Deposit Insurance Corporat ion and State Regulatory Authority and shall require

ch state chartered bank authorized to do business on Guam in conjunction with the examina tion performed by the Federal Deposit Insurance Corporat ion and State Regulatory Authority and shall require each s uch organization to submit a report of its condition as of such dates as he or she may fix at least twice in each calenda r year. Only summary examinations and reports may be required in respect of fiduciary activities that are subject to court acco unting. A report of examination shall be sent to the organization ex amined. (f) In the event that it has not received a satisfa ctory or equivalent rating by its primary safety and soundne ss regulator for the most recent examination period, the Commiss ioner may COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 15 examine each state bank and may require each such o rganization to submit a report of its condition as of such date s as he or she may fix. Only summary examinations and reports may be required in respect of fiduciary activities that ar e subject to court accounting. A report of examination shall be sent to the organization examined.

ix. Only summary examinations and reports may be required in respect of fiduciary activities that ar e subject to court accounting. A report of examination shall be sent to the organization examined. (g) The Board shall determine the need and frequenc y for necessary reporting and for examination of insuranc e carriers, but shall require an examination no less often than once every five (5) years. (h) The Board shall determine the need and frequenc y for examination of all of the entities referenced under § 103101 of this Chapter. § 103116. Records of the Division. (a) Information from the records of the Division sh all not be revealed to any person other than members of the Bo ard, except with the consent of the Commissioner and shall not be subject to subpoena, unless otherwise permitted by territorial , state or Federal law, rule or regulation. (b) Reports of examinations made by the Division sh all be retained for five (5) years. (c) The Commissioner shall keep and preserve in a permanent form a full record of all proceedings, in cluding all of his or her orders, findings and decisions and a ful l statement of his/her reasons for arriving at and issuing the sam e.

serve in a permanent form a full record of all proceedings, in cluding all of his or her orders, findings and decisions and a ful l statement of his/her reasons for arriving at and issuing the sam e. (d) A copy of any document on file with the Divisio n that is certified by the Commissioner as being a true copy may be introduced in evidence as if it were the original p ursuant to the provisions of Guam law. (e) The Commissioner shall establish a schedule of fees for copies of documents and may adopt regulations presc ribing the method for maintaining records in accordance with t he Administrative Adjudication Act. § 103117. Preservation of Records. COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 16 (a) Every territorial bank and insurance company sh all retain its business records for such periods as are or may be prescribed by or in accordance with the terms of th is Title. (b) Each territorial bank shall retain permanently the minute books of meetings of its stockholders and directors , its capital stock ledger and capital stock certificate ledger o r stubs, its general ledger, its investment ledger, its copies o f bank examination

oks of meetings of its stockholders and directors , its capital stock ledger and capital stock certificate ledger o r stubs, its general ledger, its investment ledger, its copies o f bank examination reports, and all records which the Boar d shall, in accordance with the terms of this Title, require to be retained permanently. The Commissioner in his/her discretio n may require that certain records be reproduced and stor ed in a safe deposit box. (c) Each insurance company shall retain permanently the minute books of meetings of its stockholders and di rectors, its ledgers, and all records that the Board shall, in a ccordance with the terms of this Title, require to be retained per manently. The Commissioner in his/her discretion may require that certain records be reproduced and stored in a safe deposit box. (d) All other bank and insurance records shall be r etained for such periods as the Board shall, from time to t ime, issue regulations classifying all records kept by territo rial banks and insurance companies and prescribing the period for which records of each class shall be retained. Such peri ods may be permanent or for a lesser term of years.

records kept by territo rial banks and insurance companies and prescribing the period for which records of each class shall be retained. Such peri ods may be permanent or for a lesser term of years. Such regu lations, may from time to time, be amended or repealed. Prior t o issuing any such regulation, the Board shall consider: (1) Actions at law and administrative proceedings i n which the production of records might be necessary or desirable. (2) Territorial, State and Federal statutes of limi tations applicable to such actions or proceedings. (3) The availability of information contained in ba nk and insurance company records from other sources. (4) Such other matters as the Board shall deem pertinent in order that its regulations will requir e banks and insurance companies to retain their records for as short a COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 17 period as is commensurate with the interests of cus tomers and shareholders and of the people of Guam. (e) Any territorial bank or insurance company may d ispose of any record which has been retained for the perio d prescribed by or in accordance with the terms of this

lders and of the people of Guam. (e) Any territorial bank or insurance company may d ispose of any record which has been retained for the perio d prescribed by or in accordance with the terms of this Title fo r retention of records of its class, and shall thereafter be under no duty to produce such record in any action or proceeding. (f) Any territorial bank or insurance company may c ause any or all records at any time in its custody to be reproduced photographically or electronically pursuant to the provisions of Guam law and any reproduction so made shall have th e same force and effect as the original thereof and be adm itted in evidence equally with the original. (g) To the extent that they are not in contraventio n of any law of the United States, the provisions of this Se ction shall apply to all banks and insurance companies doing bu siness in Guam. § 103118. Standards in Regulations. The Board and the Commissioner, in the exercise of the power to make rules and issue regulations pursuant to this Title, shall act in the interests of promoting and maintai ning sound banking and insurance systems, the security of depo sits and depositors and other customers, the preservation

ns pursuant to this Title, shall act in the interests of promoting and maintai ning sound banking and insurance systems, the security of depo sits and depositors and other customers, the preservation of the liquid position of banks, the compliance with local law or regulation of any bank, and in the interest of preventing injurio us credit expansions and contractions, and injury to the peop le of Guam. § 103119. Practices Injurious to Free Competition. Except as otherwise expressly provided by law, no p erson directly or indirectly shall enter into any contrac t, understanding or combination with any insurer or manager, agent o r representative thereof for the purpose of, nor shal l any such persons or insurers jointly or severably do any act or engage in any practice for the purpose of: (a) Controlling the rates to be charged, or the commissions or other compensations to be paid, for insuring any risk or class of risks; or COL11/8/201911 GCA FINANCE & TAXATION CH. 103 OFFICE OF COMMISSIONER OF BANKING AND INSURANCE 18 (b) Entering into any agreement to commit, or individually or by any concerted action committing, any act of boycott, coercion, or intimidation resulting or tending

SIONER OF BANKING AND INSURANCE 18 (b) Entering into any agreement to commit, or individually or by any concerted action committing, any act of boycott, coercion, or intimidation resulting or tending to result in unreasonable restraint of, or a monopoly in, the business of insurance. § 103120. Creation of the Banking and Insurance Enforcement Fund. There is hereby established, separate and apart fro m other funds of the government of Guam, a special fund kno wn as the ‘Banking and Insurance Enforcement Fund’ (hereinaft er the 'Fund'). The Fund shall not be commingled with the General Fund or any other fund of the government of Guam. T he Fund shall be held in an account or accounts at a Guam financi al institution or institutions separate and apart from all other accounts and funds of the government of Guam. The F und shall not be subject to I Maga’låhen Guåhan’s transfer authority. The Fund shall be used for enforcement within the purview of the Office of Commissioner of Banking and Insurance, an d the Banking and Insurance Board, subject to appropriati ons. SOURCE: Added by P.L. 27-088:2 (May 6, 2004). Repealed a nd added by P.L. 33-091:2 (Nov. 9, 2015). ---------- COL11/8/2019