Chapter 127

11 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 1 CHAPTER 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS § 127101. Voting Rights. § 127102. Entrance and Transfer Fees. § 127103. Minors and Married Women. § 127104. Joint Tenants. § 127105. Trustees and Guardians. § 127106. Attachment. § 127107. Notice from Association. § 127108. Notice of Transfer or Encumbrance. § 127109. Rate of Return on Shares and Investments Certificates. § 127110. Issuance of Shares and Investments Certif icates Without Provisions for Definite Return thereon. § 127111. Security for Faithful Performance. § 127112. Authorization to Execute Certificates. § 127113. Adverse Claims. § 127114. Dormant and Inactive Accounts and Unclaim ed Funds. § 127115. Unclaimed Property. § 127116. Unclaimed Property Held in Fiduciary Capa city. § 127101. Voting Rights. (a) Each stockholder shall have one (1) vote for e ach share of stock held by him, and each shareholder shall have such n umber of votes as shall bear the same ratio to one (1) as the par val ue of all shares held by him bears to the par value of one (1) share of stoc k issued by such association; provided, however, that

mber of votes as shall bear the same ratio to one (1) as the par val ue of all shares held by him bears to the par value of one (1) share of stoc k issued by such association; provided, however, that associations a uthorized by their articles of incorporation or by-laws to issue both shares and stock, may provide in their articles of incorporation or by-la ws that a majority of the board of directors shall be elected by the stockhol ders; and provided further, that associations authorized to issue shar es may provide in their articles of incorporation or by-laws that the holde rs of installment, accumulative or prepaid shares shall have lesser vo ting rights than holders of full paid shares, and may provide the ex tent thereof which may vary according to the value of such installment , accumulative or prepaid shares. (b) Certificate holders shall have no voting right s, except such voting rights, if any, as shall be expressly provid ed in the by-laws. COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 2 (c) Borrowing members shall be entitled to voting rights as provided in § 139103. SOURCE: GC § 41400.

-laws. COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 2 (c) Borrowing members shall be entitled to voting rights as provided in § 139103. SOURCE: GC § 41400. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 127102. Entrance and Transfer Fees. Every association shall have power pursuant to its by-laws to charge and collect a transfer fee not exceeding ten cents on each share or investment certificate, all of which fees shall be accounted for by the association like other funds of the association. No other fee, charge or deduction of principal shall ever be made or permit ted to be made against any shareholder or certificate holder or against an y of his shares or certificates hereafter issued or the dues paid in t hereon, for the purpose of creating a fund to be used in the payment of run ning expense. SOURCE: GC § 41401. § 127103. Minors and Married Women. (a) Every association, in addition to being entitl ed to issue shares and investment certificates to adults, firms or cor porations, shall also have power to issue one or more shares investment c ertificates to a minor of any age and receive payments

ed to issue shares and investment certificates to adults, firms or cor porations, shall also have power to issue one or more shares investment c ertificates to a minor of any age and receive payments thereon by or for s uch minor. Such minor shall be entitled to withdraw, transfer or pl edge any such shares or certificates owned by him and to receive from such association any and all dividends, interest or other moneys at any time becoming due thereon in the same manner and subject to the same conditio ns as an adult, and his receipt or acquittance therefor shall constitut e a valid release and discharge to the association for the payment of suc h money. (b) Every association shall have power to issue sha res and investment certificates to or in the name of a marr ied woman and to receive payments thereon by or for such person. Suc h shares or certificates shall be held by such married woman fo r the exclusive right and benefit of such person free from the control or lien of all other persons except creditors. (c) Such shares or certificates may, subject to th e provisions this act in respect of withdrawals generally, be withdrawn b y and the dividends or interest accruing thereon

persons except creditors. (c) Such shares or certificates may, subject to th e provisions this act in respect of withdrawals generally, be withdrawn b y and the dividends or interest accruing thereon may be paid to the per son in whose name such shares or certificates are issued, notwithstan ding coverture, and the receipt or acquittance of such person shall be a va lid and sufficient COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 3 release and discharge to the association for such w ithdrawals or payments, or any part thereof. SOURCE: GC § 41402. 2017 NOTE: Subsection/subitem designations added pursuant to t he authority of 1 GCA § 1606. § 127104. Joint Tenants. (a) When shares or investment certificates are iss ued in the name of two or more persons, whether minor or adult, as joi nt tenants or in form to be paid to any of them or the survivor or surviv ors of them, such shares or certificates and all dues paid on account thereof by either or any of such persons shall become the property of su ch persons as joint tenants. Such shares or investment certificates, to gether with all dividends and interest thereon, shall be held for t he

r or any of such persons shall become the property of su ch persons as joint tenants. Such shares or investment certificates, to gether with all dividends and interest thereon, shall be held for t he exclusive use of such joint tenants and may be paid to either or any of t hem during their lifetime or to the survivor or any one of the survi vors of them after the death of one or more of them. By written instructio ns of all such joint tenants given to the association, they may require the signatures of more than one of such persons during their lifetimes or of more than one of the survivors after the death of any one of them on any notice of withdrawal, request for withdrawal, check endorsement or receip t, in which case the association shall pay withdrawals, dividends and in terest only in accordance with such instructions, but no such inst ructions shall limit the right of the sole survivor or of all of the survivo rs to receive withdrawal payments, dividends and interest. (b) Payment as provided in the preceding paragraph and the receipt or acquittance of the person or persons to whom suc h payment is made shall be a valid and sufficient release and dischar ge to such

(b) Payment as provided in the preceding paragraph and the receipt or acquittance of the person or persons to whom suc h payment is made shall be a valid and sufficient release and dischar ge to such association for all payments made on account of such shares or certificates prior to the receipt by such association of notice in writin g from any one of them not to make payments in accordance with the terms o f such shares or certificates or of such instructions. After receipt of such notice an association may refuse, without liability, to pay w ithdrawals, dividends or interest pending determination of the rights of the parties. The purchase or acceptance of shares or investment cert ificates in such form shall, in the absence or fraud or undue influence, be conclusive evidence, in any action or proceeding to which either the ass ociation or the surviving share or certificate holder or holders ma y be a party, of the intention of such, share or certificate holders to vest title to such shares COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 4 or certificate and dues paid on account thereof and dividends and interest thereon in such survivor

h shares COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 4 or certificate and dues paid on account thereof and dividends and interest thereon in such survivor or survivors. SOURCE: GC § 41403. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 127105. Trustees and Guardians. (a) Every association shall have power to issue sha res and investment certificates to one or more persons or c orporations as trustee or guardian for another or for others. The associat ion shall not be liable to beneficiaries or wards for moneys paid to their trustees or guardians on account of such shares or certificates. (b) Whenever a person holding shares or investment certificates in either such capacity dies and no notice of the term s, revocation or termination of the trust or guardianship shall have been given in writing to the association, the withdrawal or other value o f the shares or investment certificates or any part thereof may be paid to the beneficiary or ward; and if no beneficiary or ward has been des ignated in writing to the association, the withdrawal or other value or a ny part thereof may be paid to the

thereof may be paid to the beneficiary or ward; and if no beneficiary or ward has been des ignated in writing to the association, the withdrawal or other value or a ny part thereof may be paid to the trustee’s or guardian’s executor or adm inistrator. (c) Payment as aforesaid by any association shall be a valid and sufficient release and discharge to such associatio n for such payment, whether or not such payment is made to a minor. SOURCE: GC § 41404. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 127106. Attachment. (a) In the case of any attachment levied upon any s hares or investment certificates of any association or upon any debts owing by any association, the copy of writ and notice must b e left, if such association maintains branches, with the manager or any other officer of such association at the office or branch thereof at which such shares or investment certificates were issued or such debt in curred if such office or branch is still being maintained, and otherwise at the principal office of such association; and no attachment not served as a foresaid shall be effective as to any share or investment certificate issued by any

till being maintained, and otherwise at the principal office of such association; and no attachment not served as a foresaid shall be effective as to any share or investment certificate issued by any such association or as to any debt owing by any such ass ociation if such share COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 5 or certificate was issued or such debt incurred at an office or branch thereof not so served. (b) No attachment or execution shall be issued aga inst any association or its property in any suit, action or proceeding arising out of the claim of any shareholder or certificate holder to withdraw before final judgment that such shareholder or certificate holder is presently entitled to payment of such withdrawal. SOURCE: GC § 41405. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 127107. Notice From Association. Any notice which an association is required or shal l desire to give to any of its investors may be given either by persona l service thereof upon such investor or by mailing the same, postage prepa id, addressed to such investor at his last post office address given by s

ny of its investors may be given either by persona l service thereof upon such investor or by mailing the same, postage prepa id, addressed to such investor at his last post office address given by s uch investor to such association for the purpose of mailing of notices, or, if no such address shall have been so given, then at the city or town in which the principal office in this territory of such association is loc ated and any notice given by mail as aforesaid shall be deemed to have been g iven upon deposit thereof in the mails; provided, however, that in th e case of any investor whose address as aforesaid six hundred miles from t he place of mailing such as aforesaid, the time within which such inves tor may exercise any right or remedy following the giving of such notice shall be extended one day for each unit of six hundred miles or fraction of such unit between such address and such place of mailing, not to exce ed in any case, however, an extension of ten days. SOURCE: GC § 41406. § 127108. Notice of Transfer or Encumbrance. (a) No transfer or encumbrance of investment certi ficates or shares issued by an association shall be effective as to s uch association until

GC § 41406. § 127108. Notice of Transfer or Encumbrance. (a) No transfer or encumbrance of investment certi ficates or shares issued by an association shall be effective as to s uch association until written notice of such transfer or encumbrance shal l have been given to the office of the association at which such investm ent certificates or shares were issued, or at which the account of such association as to such shares or investment certificates is kept, or to th e principal office of such association. (b) Until such notice shall have been so given, su ch association may conclusively presume that investment certificat es and shares have COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 6 not been transferred or encumbered, and may, in the absence of such notice, make any and all payments or issue new inve stment certificates or shares to or in the name or names of the person or persons in whose name or names its certificates or shares are issued , whether or not such investment certificates or shares are presented at the time of such payment or issuance, and shall have no responsibili ty to a transferee or lienholder with respect to any

sued , whether or not such investment certificates or shares are presented at the time of such payment or issuance, and shall have no responsibili ty to a transferee or lienholder with respect to any investment certifica tes or shares, or parts thereof, so paid or reissued. SOURCE: GC § 41407. 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 127109. Rate of Return on Shares and Investment C ertificates. The rate of return on shares and investment certifi cates: (a) Which do not provide for a definite rate of ret urn thereon shall be determined by the Board of Directors of th e association during, or within thirty (30) days before the begin ning of, or within thirty (30) days after the end of, each quarterly o r semi-annual period. On the next business day following any such determination which provides for a change in the rate of return t he Board shall mail to the Commissioner a certified copy of its re solution making the determination. The rate of return is subject to the approval of the Commissioner when an association which issues inves tment certificates or stock, has matured withdrawal claim s.

olution making the determination. The rate of return is subject to the approval of the Commissioner when an association which issues inves tment certificates or stock, has matured withdrawal claim s. (b) The Commissioner shall approve the rates of ret urn on shares and investment certificates unless he finds them unfair, unjust, or inequitable, having due regard to the ea rnings of the association, the nature and amount of its assets an d liabilities, and the amount of its undivided profits, reserves, surp lus, and capital. (c) If, within ten (10) days after the Commissioner is advised in writing of the rates of return on shares and invest ment certificates as determined by the Board of Directors of the associa tion, the Commissioner has not notified the association in wr iting that he disapproves of such rates, the approval of the Comm issioner is conclusively presumed. (d) If within thirty (30) days after the Commission er is advised in writing of the rates of returns on shares and in vestment certificates as determined by the Board of Director s of an COL412201711 GCA FINANCE & TAXATION CH.

ays after the Commission er is advised in writing of the rates of returns on shares and in vestment certificates as determined by the Board of Director s of an COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 7 association, the Commissioner and the Board of Dire ctors have not agreed upon such rates or upon other rates, then th e Commissioner shall determine the rates. In determining such rate s the Commissioner shall take into consideration the earn ings, nature and amount of assets and liabilities, the amount of und ivided profits, reserves, surplus, and capital of the association. (e) An association or any of its certificate holder s or shareholders aggrieved by the action of the Commiss ioner in determining the rates of return on shares and inves tment certificates may at any time within ten (10) days after the dete rmination of the rates apply to the District Court of Guam for a rev iew of the Commissioner’s determination. The Commissioner’s de termination shall not be set aside or modified unless the court finds that the Commissioner in making his determination committed an abuse of discretion.

sioner’s determination. The Commissioner’s de termination shall not be set aside or modified unless the court finds that the Commissioner in making his determination committed an abuse of discretion. (f) Profits and losses shall be apportioned at leas t annually. In computing earnings or dividends on shares, the rate shall be applied to the value of the shares, subject to regulations prescribed by the bylaws or the directors in respect to payments on s uch shares since the last prior apportionment. (g) Before declaring dividends the directors shall set aside as a loan reserve any sum required by any applicable pro vision of this Act. (h) Every association issuing stock may declare div idends on stock at a rate equal to that declared and paid or credited on installment shares. The association may also set as ide out of the net profits at each annual distribution, an amount not exceeding one percent (1%) a year of the average loans in force d uring such period, or a proportionate amount at each semi-annual, quar terly, or other distribution, from which to declare additional divi dends on its stock if at least one-tenth of the amount set aside is ca rried to stock surplus until such

at each semi-annual, quar terly, or other distribution, from which to declare additional divi dends on its stock if at least one-tenth of the amount set aside is ca rried to stock surplus until such surplus amounts to and is mainta ined at a value of at least twenty-five percent (25%) of the amount se t aside as a fixed and permanent capital of the association pursuant t o any provision of this Act. (i) The directors of any association issuing stock and not issuing installment shares may make, declare, and p ay cash dividends, or with the Commissioner’s consent, prop erty dividends, COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 8 on the stock of as much of the surplus profits as a ppears advisable to the directors. Such dividends are subject to all th e restrictions of this part on the declaration or payment of dividends. SOURCE: GC § 41408. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 127110. Issuance of Shares and Investment Certifi cates Without Provision for Definite Return Thereon. (a) No association may issue shares or investment certificates with provision for a definite rate of return

uance of Shares and Investment Certifi cates Without Provision for Definite Return Thereon. (a) No association may issue shares or investment certificates with provision for a definite rate of return thereon; pr ovided, however, that nothing contained in this section shall be deemed t o forbid any association from (a) issuing shares or certificates providing that the return thereon shall not exceed a maximum figure sp ecified therein; nor (b) issuing installment shares or installment certi ficates providing for an additional rate of return for the investor in exces s of the rate of return paid by such association to its shareholders or cer tificate holders generally, and conditioned upon the faithful perfor mance of such installment contract by the shareholder or certific ate holder. (b) The rate or rates of return on shares or inves tment certificates, or both, issued pursuant to the provisions of this section without a definite rate of return stated therein shall be fix ed and determined in the manner provided in Section 127109 of this act. SOURCE: GC § 41409. 2017 NOTE: Subsection designations added/altered pursuant to t he authority of 1 GCA § 1606. § 127111.

fix ed and determined in the manner provided in Section 127109 of this act. SOURCE: GC § 41409. 2017 NOTE: Subsection designations added/altered pursuant to t he authority of 1 GCA § 1606. § 127111. Security for Faithful Performance. Investment certificates, if issued by an associatio n which is an insured institution as defined in Title IV of the National -Housing Act , shall be acceptable and may be used as security for the faithful performance of any public or private trust or oblig ation. Shares, if issued by an association issuing no investment certificate s and which is an insured institution as defined in Title IV of the National Housing Act , shall be acceptable and may be used as security for the faithful performance of any public or private trust or oblig ation. SOURCE: GC § 41410. § 127112. Authorization to Execute Certificates. COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 9 Certificates evidencing shares or investment certif icates shall be manually signed by one or more officers or employee s who shall be authorized to execute such certificates by the by-l aws or by the board of directors. SOURCE: GC § 41411. § 127113.

icates shall be manually signed by one or more officers or employee s who shall be authorized to execute such certificates by the by-l aws or by the board of directors. SOURCE: GC § 41411. § 127113. Adverse Claims. (a) Notice to any association of an adverse claim (the person making such adverse claim being hereafter in this s ection called adverse claimant ) to shares or investment certificates standing on its books the credit of, or to personal property held for the acc ount of, any person may be disregarded until and unless the adverse claiman t shall (1) procure and serve upon the association at the o ffice at which the account is carried or the property held a restraining order, injunction or other appropriate order against the a ssociation from a court of competent jurisdiction in an action in whi ch the adverse claimant and all persons in whose name such account stands or for whose account such property is held are parties; or (2) execute and deliver to the association at the o ffice at which the account is carried or the property held a bond in form and with surety acceptable to it and in an amount fixed by t he association, but which amount in no event need be more than

o ffice at which the account is carried or the property held a bond in form and with surety acceptable to it and in an amount fixed by t he association, but which amount in no event need be more than twice th e value of the shares or investment certificates or more than twic e the market value of the property against which the adverse cla im is made, indemnifying it and also all persons in whose names such account stands or for whose account such property is held, against all liability, loss, damage, costs and expenses arising out of the refusal to permit withdrawal from such account or to pay di vidends or interest thereon or to deliver such property. (b) Unless such restraining order, injunction or o ther appropriate order is obtained, or such bond is given, the assoc iation, notwithstanding such notice, may honor notices of intention to with draw and may pay withdrawals, dividends and interest to the person o r persons to whose credit the account stands or may deliver such prope rty to or upon the order of the person for whose account such property is, without any liability on the part of the association.

r persons to whose credit the account stands or may deliver such prope rty to or upon the order of the person for whose account such property is, without any liability on the part of the association. (c) If an adverse claimant delivers to the associa tion at the office at which the account is carried or the property held h is affidavit stating that COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 10 of his own knowledge the person to whose credit the account stands or for whose account the property is held is a fiducia ry for the adverse claimant and that such fiduciary is about to misapp ropriate the account or the property and stating the facts upon which the c laim of a fiduciary relationship is based, the association may refuse t o pay withdrawals, dividends or interest on the account or may refuse to deliver such property until the adverse claim is finally adjudic ated or released, without liability on its part and without liability for the sufficiency or truth of the facts alleged in the affidavit. (d) The provisions of this section shall be applic able even though the name of the person appearing on the association ’s books to whose

e sufficiency or truth of the facts alleged in the affidavit. (d) The provisions of this section shall be applic able even though the name of the person appearing on the association ’s books to whose credit the account stands or for whose account the property is held is modified by a qualifying or descriptive term such a s agent, trustee or other word or phrase indicating that such person ma y not be the owner in his own right of the account or property. SOURCE: GC § 41412. 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. This publication corrects a typographical error in subsection (c). § 127114. Dormant and Inactive Accounts and Unclaim ed Funds. (a) Shares or Savings Account. In the event there h as been no activity of deposits or withdrawals, and no contact has been made by the holder of a share or savings account with the assoc iation for five (5) years, the association shall transfer the balance o f such account to the Treasurer of Guam. (b) In the event an account subject to a negotiable order of withdrawal or a check account is inactive for two ( 2) years and the depositor cannot be located, an association shall t ransfer

of Guam. (b) In the event an account subject to a negotiable order of withdrawal or a check account is inactive for two ( 2) years and the depositor cannot be located, an association shall t ransfer the balance of such account to the Treasurer of Guam for the accou nt of the depositor. (c) In transferring the balance of any account to t he Treasurer of Guam as provided in Subsections (a) and (b) of this Section: (1) An association shall first send written notice to the depositor at the depositor’s last known address inf orming the depositor that the depositor’s account is subject t o this Section if: COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 11 (A) an association has in its records an address fo r the depositor which the association’s records do not di sclose to be inaccurate; and (B) the account contains Twenty-five Dollars ($25.0 0) or more. (2) The notification required in Subsection (c)(1) of this Section shall be performed before October 1 of each year for accounts that are inactive as of June 30 of the nex t preceding year. (3) On November 1 and on December 1, an association shall publish a notice of inactive accounts in a

e October 1 of each year for accounts that are inactive as of June 30 of the nex t preceding year. (3) On November 1 and on December 1, an association shall publish a notice of inactive accounts in a newspape r of general circulation. The published notice shall be entitled , ANotice of Inactive Accounts, @ and shall contain: (A) the names, in alphabetical order, and last know n address, if any, of depositors of inactive accounts ; and (B) a statement that such funds shall be transferre d to the Treasurer of Guam during the month of January of th e following year. (4) During the month of January of the year immedia tely following the publication required by Subsection (c )(3) of this Section, an association shall transfer to the Treas urer of Guam all balances of accounts as provided in Subsections (a) and (b) of this Section. (d) In the event an association holds unidentified deposits or other fund for three (3) years, the owner of which cannot be determined by the association, the association shall transfer the bal ance of such account to the Treasurer of Guam for the account of the deposi tor, in the event such depositor is determined at a later date.

by the association, the association shall transfer the bal ance of such account to the Treasurer of Guam for the account of the deposi tor, in the event such depositor is determined at a later date. (e) In the event an association holds unidentified loan payments for three (3) years, the association shall transfer the balances of such accounts to the Treasurer of Guam for the account o f the payor, in the event such payor is later determined. (f) Prior to transferring funds to the Treasurer of Guam pursuant to the provisions of this Section, the transferring as sociation may deduct all reasonable sums or costs due the association, inclu ding cost of publication or other notice required by this Sectio n. Receipt by the Treasurer of Guam for such deposits shall be a full discharge to the COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 12 transferring association of all liabilities to the depositor or owner of such funds. (g) The Treasurer of Guam upon receiving sums of mo ney pursuant to this Section shall furnish the transferring asso ciation with a receipt for such sums transferred, and shall deposit such sums in the General Fund of the

uam upon receiving sums of mo ney pursuant to this Section shall furnish the transferring asso ciation with a receipt for such sums transferred, and shall deposit such sums in the General Fund of the government of Guam. (h) The Treasurer of Guam shall maintain accurate r ecords of such sums in accordance with regulations adopted by the Board. Such sums may be claimed at any time by the rightful owner or owners of such sums upon furnishing proof satisfactory to the Treasurer of Guam of their right to such funds. Funds deposited with the Treasurer o f Guam pursuant to this Section shall not accrue interest. The Treasur er of Guam shall not be liable for damages or penalties for any payment to a claimant of funds deposited pursuant to this Section. (i) The Board may adopt such rules and regulations as may be necessary to implement the provisions of this Secti on. (j) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section escheat to the Territory of Guam one (1) year subsequent to the date of such transfer. (k) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section shall be transferred dur ing the month of January

m one (1) year subsequent to the date of such transfer. (k) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section shall be transferred dur ing the month of January for those accounts deemed inactive and dorm ant as of June 30 of the preceding year. (l) The Treasurer of Guam shall directly deposit al l balances of accounts transferred pursuant to this Subsection to a custodial interest bearing account separate and apart from the General Fund. No interest shall be paid by the government of Guam to the depo sitor from the date of transfer of the balance of account to the Treasu rer of Guam. (m) When an association transfers the balance of an y account to the Treasurer of Guam pursuant to this Section, the ass ociation shall hold the government of Guam harmless for any liability incur red by the association because of any handling of an account o n the part of the association. The government of Guam shall not be li able for any transaction on an account made by any association, including transfer of the balance of the account to the Treasurer of Guam pursuant to this Section. COL412201711 GCA FINANCE & TAXATION CH.

for any transaction on an account made by any association, including transfer of the balance of the account to the Treasurer of Guam pursuant to this Section. COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 13 (n) shall be no statute of limitations as to claimi ng dormant accounts. All claims against the government of Guam for balances of accounts which have been transferred as inactive or dormant accounts to the government of Guam by any associati on must be initiated by a claim against the government of Guam under the Claims Act, within one (1) year of the date of tran sfer. SOURCE: Added by P.L. 24-072:2 (Sept. 30, 1997). 2017 NOTE: Subitem designations altered pursuant to the author ity of 1 GCA § 1606. § 127115. Unclaimed Property. (a) Definitions. As used in this Section, unless t he context otherwise requires: (1) Apparent owner means the person who appears from the records of the holder to be entitled to property he ld by the holder. (2) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe- deposit company, private banker, or any similar org anization.

by the holder. (2) Banking organization means any national or state bank, trust company, banking company, land bank, savings bank, safe- deposit company, private banker, or any similar org anization. (3) Business association means any private corporation, joint stock company, business trust, partnership, or any association for business purposes of two (2) or more individuals, w hether or not for profit, including, but not by way of limitation, a banking organization, financial organization, life insuranc e corporation, and utility. (4) Holder means any person in possession of property subject to this Section belonging to another, or wh o is trustee in case of a trust, or is indebted to another on an obligat ion subject to this Section. (5) Owner means a depositor in case of a deposit, a beneficiary in case of a trust, or creditor, claima nt, or payee in case of other choices in action, or any person having a legal or equitable interest in property subject to this Section, or hi s or her legal representative. (6) Person means any individual, business association, government or governmental subdivision or agency, t wo (2) or more persons having a joint or common interest, or any o

her legal representative. (6) Person means any individual, business association, government or governmental subdivision or agency, t wo (2) or more persons having a joint or common interest, or any o ther legal or COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 14 commercial entity, whether that person is acting in his or her own right or in a representative or fiduciary capacity. (b) Any dividend, profit, distribution, interest, p ayment on principal, or other sum held or owing by a business association for or to its shareholder, certificate holder, member, bondho lder, or other security holder, or a participating patron of a cooperative, where there has been no owner-generated activity on the account or prope rty or written communication from the owner of the property, withi n three (3) years after the date prescribed for payment or delivery, shall transfer to the Treasurer of Guam. (c) Any intangible interest in a business associati on, as evidenced by the stock records or membership records of the a ssociation, shall transfer to the Treasurer of Guam if: (1) the interest in the association is owned by a p erson who for more than three

evidenced by the stock records or membership records of the a ssociation, shall transfer to the Treasurer of Guam if: (1) the interest in the association is owned by a p erson who for more than three (3) years has neither claimed a dividend or other sum referred to in Subsection (b) nor corresponded in writing with the association or otherwise indicated an interest as evidenced by a memorandum or other record on file with the associa tion; and (2) the association does not know the location of t he owner at the end of the three (3)-year period. With respect to the interest, the business association shall be deemed the holder. (d) Any dividends or other distributions held for o r owing to a person at the time the stock or other security to w hich they attach shall transfer to the Treasurer of Guam and shall escheat to the Treasurer of Guam at the same time. (e) If the business association has in its records an address for the apparent owner, which the business association’s re cords do not disclose to be inaccurate, with respect to any interest that may transfer pursuant to Subsection (b), the business association shall make reasonable efforts to notify the owner by mail or, if the

not disclose to be inaccurate, with respect to any interest that may transfer pursuant to Subsection (b), the business association shall make reasonable efforts to notify the owner by mail or, if the owner has conse nted to electronic notice, electronically, that the owner’s interest i n the business association will transfer and escheat to the Treasurer of Guam. (1) The notice shall be given not less than six (6) or more than twelve (12) months before the time the interest in the business association becomes reportable to the Department of Administration in accordance with this Section. COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 15 (2) The notice required by this Section shall specify the time that the interest will transfer and escheat, and th e effects of transfer and escheat, including the necessity for filing a c laim for the return of the interest. (3) The notice required by this Section shall : (A) specify that since the date of last activity, o r for the last three (3) years, there has been no owner activ ity on the deposit, account, shares, or other interest; (B) identify the deposit, account, shares, or other interest by

last activity, o r for the last three (3) years, there has been no owner activ ity on the deposit, account, shares, or other interest; (B) identify the deposit, account, shares, or other interest by number or identifier, which need not exceed four (4) digits; (C) indicate that the deposit, account, shares, or other interest is in danger of transferring and escheatin g to the Treasurer of Guam; and (D) specify that the Unclaimed Property Law require s business associations to transfer funds of a deposi t, account, shares, or other interest if it has been inactive f or three (3) years. (4) It shall also include a form, as prescribed by the Department of Administration, by which the owner ma y confirm the owner's current address. If that form is filled out , signed by the owner, and returned to the holder, it shall be deem ed that the business association knows the location of the owne r. In lieu of returning the form, the business association may pr ovide a telephone number or other electronic means to enabl e the owner to contact the association. With that contact, as evid enced by a memorandum or other record on file with the busines s association, the business association shall

ectronic means to enabl e the owner to contact the association. With that contact, as evid enced by a memorandum or other record on file with the busines s association, the business association shall be deemed to know th e location of the owner. (5) The business association may impose a service c harge on the deposit, account, shares, or other interest for this notice and form in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form, and in no case to exceed Two Dollars ($2.00). (f) In addition to the notice required pursuant to Subsection (e), the holder may give additional notice at any time b etween the dates of last activity by, or communication with, the owner and the date the COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 16 holder transfers the deposit, shares, or other inte rest to the Treasurer of Guam. (g) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section shall escheat to the gov ernment of Guam one (1) year subsequent to the date such transfers occu rred.

m. (g) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section shall escheat to the gov ernment of Guam one (1) year subsequent to the date such transfers occu rred. (h) The Treasurer of Guam, upon receiving sums of m oney pursuant to this Section, shall furnish the transfe rring association with a receipt for such sums transferred, and sums of mone y shall be deposited in the Housing Trust Fund established in Article 10 of Chapter 4, Title 12, Guam Code Annotated. Such funds shall be used i n accordance with the provisions of the Guam Housing Corporation’s es tablishment of a pilot Housing First program. SOURCE: Added by P.L. 33-231:3 (Jan. 9, 2017). 2017 NOTE: Subitem designations altered pursuant to the author ity of 1 GCA § 1606. § 127116. Unclaimed Property Held in Fiduciary Cap acity. (a) Definitions. For the purpose of this Section, terms as defined in § 127115 of this Chapter shall apply to this Sec tion. (b) All tangible and intangible personal property h eld in a fiduciary capacity for the benefit of another person, includi ng tangible personal property subject to § 127115 of this Chapter, all i ntangible personal property maintained in

al property h eld in a fiduciary capacity for the benefit of another person, includi ng tangible personal property subject to § 127115 of this Chapter, all i ntangible personal property maintained in a deposit or account, and th e income or increment on such tangible or intangible property, shall tran sfer to the Treasurer of Guam if, for more than three (3) years after it bec omes payable or distributable, the owner has not done any of the fo llowing: (1) increased or decreased the principal; (2) accepted payment of principal or income; (3) corresponded in writing concerning the property ; or (4) otherwise indicated an interest in the property as evidenced by a memorandum or other record on file w ith the fiduciary. (c) Notwithstanding Subsection (b), tangible or int angible property, and the income or increment on the tangib le or intangible property, held in a fiduciary capacity for another person, shall not transfer to the Treasurer of Guam if the following are satisfied: COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 17 (1) During the previous three (3) years, the fiduci ary took one (1) of the following actions: (A) held another

12201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 17 (1) During the previous three (3) years, the fiduci ary took one (1) of the following actions: (A) held another deposit or account for the benefit of the same owner; (B) maintained a deposit or account on behalf of th e same owner in an individual retirement account; or (C) held funds or other property for the same owner under a retirement plan for a self-employed individ ual, or similar account or plan, established pursuant to th e internal revenue laws of the United States or the laws of Gu am. (2) During the previous three (3) years, the owner has done any of the acts described in Subsections (b)(1), (b )(2), (b)(3), or (b)(4) with respect to the deposit, account, or pla n described in Subsection (c)(1), and the fiduciary has communicat ed electronically or in writing with the owner at the address to which communications regarding that deposit, account, or plan are regularly sent, with regard to the deposit, account , or plan that would otherwise transfer under this Section. 'Commu nications,' for purposes of this Section, includes account statemen ts or statements required under the

gard to the deposit, account , or plan that would otherwise transfer under this Section. 'Commu nications,' for purposes of this Section, includes account statemen ts or statements required under the internal revenue laws of the Uni ted States. (d) Funds in an individual retirement account or a retirement plan for self-employed individuals or similar account or plan established pursuant to the internal revenue laws of the United States or Guam are not payable or distributable within the meaning of Subsection (b) unless either of the following is true: (1) under the terms of the account or plan, distrib ution of all or part of the funds would then be mandatory; or (2) for an account or plan not subject to mandatory distribution requirement under the internal revenue laws of the United States or Guam, the owner has attained seven ty and a half (70½) years of age. (e) For the purpose of this Section, when a person holds property as an agent for a business association, he or she i s deemed to hold the property in a fiduciary capacity for the business a ssociation alone, unless the agreement between him or her and the business a ssociation clearly provides the contrary.

r she i s deemed to hold the property in a fiduciary capacity for the business a ssociation alone, unless the agreement between him or her and the business a ssociation clearly provides the contrary. For the purposes of this Sec tion, if a person holds COL412201711 GCA FINANCE & TAXATION CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS 18 property in a fiduciary capacity for a business ass ociation alone, he or she is the holder of the property only insofar as t he interest of the business association in the property is concerned a nd the association is deemed to be the holder of the property insofar as the interest of any other person in the property is concerned. (f) All funds transferred to the Treasurer of Guam pursuant to the provisions of this Section shall escheat to the gov ernment of Guam one (1) year subsequent to the date such transfers occu rred. (g) The Treasurer of Guam, upon receiving sums of m oney pursuant to this Section, shall furnish the transfe rring association with a receipt for such sums transferred, and sums of mone y shall be used in accordance with the provisions of the pilot Housing First program developed by the Guam Housing Corporation.

association with a receipt for such sums transferred, and sums of mone y shall be used in accordance with the provisions of the pilot Housing First program developed by the Guam Housing Corporation. SOURCE: Added by P.L. 33-231:4 (Jan. 9, 2017). ---------- COL4122017