11 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 1 CHAPTER 160 GUAM -BASED TRUST COMPANIES ACT SOURCE: Entire chapter added by P.L. 25-073:1 (Oct. 19, 199 9). Article 1. General Provisions. Article 2. Organization and Licensing. Article 3. Powers and Miscellaneous Provisions. Article 4. Examination and Regulation. Article 5. Unlawful Acts; Penalties. ARTICLE 1 GENERAL PROVISIONS § 160101. Declaration of Legislative Intent. § 160102. Definitions. § 160103. Applicability of Chapter. § 160101. Declaration of Legislative Intent. Liheslaturan Guåhan finds as facts and determines that: (a) there exists on the island of Guam a need for the protection of the public interest, to regulate companies which are engaged in the Trust Company business; (b) such trust companies should be licensed and re gulated in such a manner as to promote the public advantage an d convenience; and (c) it is the purpose of this Chapter to bring und er public supervision those persons who are engaged in, or wh o desire to engage in the business of a Trust Company, not in connection with banking business, and to insure that there is estab lished on Guam an adequate, efficient and competitive Trust in, or wh o desire to engage in the business of a Trust Company, not in connection with banking business, and to insure that there is estab lished on Guam an adequate, efficient and competitive Trust Company s ervice. This Act has been derived from the State of Nevada. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160102. Definitions. For the purposes of this Chapter, except as otherwise specifically provided, the following words and phrases, together with all of the COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 2 common derivatives thereof (i.e. verbs, plurals, fe minine gender, etc.) shall have the meaning ascribed to them as follows: (a) Beneficiary means the person for whose benefit trust property is held. (b) Commissioner means the Commissioner of Banking of the government of Guam. (c) Court Trust means the action of a Trust Company acting under appointment, order or decree of any court as executor, administrator, guardian, conservator, assignee, rec eiver, depositary or trustee, or receiving on deposit money or proper ty from a public administrator under any provision of this Chapter o r from any ministrator, guardian, conservator, assignee, rec eiver, depositary or trustee, or receiving on deposit money or proper ty from a public administrator under any provision of this Chapter o r from any executor, administrator, guardian, conservator, ass ignee, receiver, depositary or trustee under any order or decree of any court. (d) Equitable Duties include the common law duties of a trustee, the duty to exercise reasonable care, skil l and caution in preserving and enhancing trust property, the duty t o act with undivided loyalty to the beneficiaries of a trust a nd the duty to act with impartiality among all beneficiaries. (e) Fiduciary means trustee, agent, executor, administrator, committee, guardian, conservator for a minor or oth er incompetent person, receiver, trustee in bankruptcy, assignee f or creditors or any holder of a similar position of trust. (f) Investment Company means any issuer which is, or holds itself out as, being engaged primarily, or proposes to engage primarily, in the business of investing, reinvestin g or trading in securities. (g) Investment Trust means a company which sells its own stock and invest the money in stocks, real estate a nd other e primarily, in the business of investing, reinvestin g or trading in securities. (g) Investment Trust means a company which sells its own stock and invest the money in stocks, real estate a nd other investment. (h) Net Worth means paid in capital plus paid in surplus plus retained earnings, if any. (i) Person means an individual, a partnership, a corporation and any other entity established by law or otherwise es tablished for a stated purpose. (j) Private Trust means every other trust, agency, fiduciary relationship or representative capacity other than a court trust. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 3 (k) Settlor means a person who creates a trust. (l) Trust means a fiduciary relationship with respect to property, the trust property, which arises as a res ult of a manifestation of an intention to create it and whic h subjects the person by whom the property is held, the trustee, t o equitable duties to deal with the property for the benefit of anothe r person, the beneficiary. (m) Trust Company means a corporation organized and licensed in Guam as provided in this Chapter and en gaged in Trust Company business. property for the benefit of anothe r person, the beneficiary. (m) Trust Company means a corporation organized and licensed in Guam as provided in this Chapter and en gaged in Trust Company business. (n) Trust Company Business means acting as a trustee and engaging in those activities stated in § 160301.1. (o) Trustee means a person who is subject to equitable duties and who holds trust property for a beneficiary. (p) Trust Property means property held in a trust. § 160103. Applicability of Chapter. This Chapter does not apply to: (a) banks or banking institutions regulated under the provisions of Chapter 100 of Title 11 of the Guam C ode Annotated; (b) savings and loan institutions regulated under Chapter 141 of Title 11 of the Guam Code Annotated; (c) title insurers, but only respecting escrows; (d) nonprofit, charitable trusts or trust associa tions; (e) any person, if: (1) the fiduciary relationship is not one of the p erson’s principal occupations; or (2) that person serves as trustee for a relative by blood or marriage; or (f) to a beneficiary of the Guam Foreign Direct In vestment Equity Act. SOURCE: Added by P.L. 25-073 (Oct. 19, 1999). Amended by P.L. person serves as trustee for a relative by blood or marriage; or (f) to a beneficiary of the Guam Foreign Direct In vestment Equity Act. SOURCE: Added by P.L. 25-073 (Oct. 19, 1999). Amended by P.L. 25-149:2 (July 5, 2000). COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 4 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. --------- ARTICLE 2 ORGANIZATION AND LICENSING § 160201. Unlawful to Engage in Business of Trust C ompany Without License. § 160202. Unlawful to Use or Advertise Word >Trust = as Part of Name; Exceptions . § 160203. Minimum Capitalization. § 160204. Incorporation; Required Number of Persons . § 160205. Contents of Articles of Incorporation. § 160206. Commissioner to Issue Certificate of Inco rporation; Commissioner Must Authorize Business Before Company May Transact Business. § 160207. Subscription, Acknowledgment and Filing o f Articles of Incorporation; Filing of Copies. § 160208. Application for License: Contents; Fees. § 160209. Procedure for Granting or Denying License . § 160210. Issuance or Denial of License; Renewal. § 160211. License Fees; Renewals. § 160212. § 160208. Application for License: Contents; Fees. § 160209. Procedure for Granting or Denying License . § 160210. Issuance or Denial of License; Renewal. § 160211. License Fees; Renewals. § 160212. Cancellation of License If Trust Company Fails to Open for Business. § 160201. Unlawful to Engage in Business of Trust C ompany Without License. It is unlawful for any Trust Company to engage in t he business of a Trust Company without complying with the provisions of this Chapter and having a license issued by the Commissioner. § 160202. Unlawful to Use or Advertise Word >>>>Trust ==== as Part of Name; Exceptions . (a) Except as otherwise provided in Subsection 2, no person, partnership, firm, association, corporation or othe r business organization formed and doing business under the laws of Guam ma y: (1) use the words >Trust Company = or any direct derivative of these words as a part of its name. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 5 (2) advertise or use any sign with the words >Trust Company = used as a part of its name. (b) The provisions of Subsection (a) do not apply to a person or business organization which is supervised by the Co ertise or use any sign with the words >Trust Company = used as a part of its name. (b) The provisions of Subsection (a) do not apply to a person or business organization which is supervised by the Co mmissioner pursuant to this Chapter. 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. Internal reference alte red to reflect the change. § 160203. Minimum Capitalization. No Trust Company may be organized or operated with a capital of less than One Hundred Thousand Dollars ($100,000.00 ), or in such greater amount as may be required by the Commission er, and paid-up surplus of Fifty Thousand Dollars ($50,000.00), or in such greater amount as may be required by the Commissioner. The full amount of the capital and surplus must be paid in cash, exclusive of all organization expenses, before the Trust Company is authorized to commence business. § 160204. Incorporation; Required Number of Persons . (a) Any three (3) or more persons may execute arti cles of incorporation and be incorporated as a trust compan y in the manner prescribed in this Chapter. Incorporation; Required Number of Persons . (a) Any three (3) or more persons may execute arti cles of incorporation and be incorporated as a trust compan y in the manner prescribed in this Chapter. (b) Any two (2) or more persons may execute articl es of organization and form a trust company in the manner prescribed in this Chapter. SOURCE: Added by P.L. 25-073:1 (Oct. 19, 1999). Repealed and reenacted by P.L. 33-239:2 (Jan. 27, 2017). 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 160205. Contents of Articles of Incorporation. (a) The articles of incorporation must contain: (1) the corporate name adopted by the corporation, which must be such as to distinguish it from any other Trust C ompany formed or incorporated on Guam, or engaged in the trust bu siness on Guam; (2) the place where its business is to be conducte d; (3) the purpose for which it is formed; COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 6 (4) the amount of its capital stock, which must be divided into shares of the par value of not less than Twenty-five Dollars ($25.00) each, except that upon the written approval of the Commissioner the ) the amount of its capital stock, which must be divided into shares of the par value of not less than Twenty-five Dollars ($25.00) each, except that upon the written approval of the Commissioner the capital stock may be divided into shares of the par value of not less than One Dollar ($1.00) each (The amount of capital stock must not be less than One Hundred Thousand Dollars ($100,000 .00), and must be assessable.); (5) the amount of its original paid-in surplus, wh ich must not be less than fifty percent (50%) of its capital sto ck; (6) the name and place of residence of, and the nu mber of shares subscribed by, each stockholder; (7) the number of directors, which must not be les s than three (3), and the names of the stockholders selected to act as the first board of directors, each of whom must be a bona fide subscriber for at least One Thousand Dollars ($1,000.00) of the st ock of the Trust Company, fully paid and not hypothecated; (8) the location of all branch offices as approved by the Commissioner; and (9) such other matters, not inconsistent with law, as the incorporators may deem proper. , fully paid and not hypothecated; (8) the location of all branch offices as approved by the Commissioner; and (9) such other matters, not inconsistent with law, as the incorporators may deem proper. (b) The articles of incorporation may also provide for the issuance and sale of preferred stock in such amount as is fi xed by the articles or by amendments thereto, and the amount and number of shares thereof, and the terms and conditions thereof consistent wit h the provisions of this Chapter. 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. § 160206. Commissioner to Issue Certificate of Inco rporation; Commissioner Must Authorize Business Before Company May Transact Business. (a) The Commissioner shall issue a certificate in the form provided by law for other corporations, and the existence of the Trust Company as a corporation dates from the issuance of the certif icate by the Commissioner, from which time it has and may exerci se the powers conferred by law upon corporations generally, except as limited or modified by this Chapter. COL412201711 GCA FINANCE & TAXATION CH. Commissioner, from which time it has and may exerci se the powers conferred by law upon corporations generally, except as limited or modified by this Chapter. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 7 (b) The Trust Company shall transact no business, except the election of officers, and the taking and approving of their official bonds, and the receipt of payments on account of the subsc riptions of the capital stock, and such other business as is incidental to its organization, until it is authorized by the Commissioner to commence the T rust Company business as provided in this Chapter. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160207. Subscription, Acknowledgment and Filing o f Articles of Incorporation; Filing of Copies. The articles of incorporation must: (a) be subscribed to by at least three (3) of the s tockholders of the proposed corporate Trust Company; (b) be acknowledged by them before some person comp etent to take an acknowledgment of deeds; and (c) be filed in the office of the Commissioner. § 160208. Application for License: Contents; Fees. y; (b) be acknowledged by them before some person comp etent to take an acknowledgment of deeds; and (c) be filed in the office of the Commissioner. § 160208. Application for License: Contents; Fees. (a) The corporate Trust Company shall file an appl ication for a license to transact Trust Company business with the Commissioner on forms prescribed by the Commissioner, which must co ntain such information as the Commissioner requires. (b) A non-refundable fee of One Thousand Dollars ( $1,000.00) for the application and investigation must accompany th e application. The applicant shall also pay such additional expenses i ncurred in the process of investigation as the Commissioner deems necessar y. (c) Notification of the location of a Trust Compan y branch office shall be made to the Commissioner, accompanied by a non-refundable fee in the amount of Two Hundred Fifty Dollars ($25 0.00). (d) All money received by the Commissioner pursuan t to this Section must be placed in a special purpose trust a ccount, pursuant to § 160307 of this Act. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160209. Procedure for Granting or Denying License . purpose trust a ccount, pursuant to § 160307 of this Act. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160209. Procedure for Granting or Denying License . COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 8 (a) Within forty-five (45) days following the fili ng of the application for a license, the Commissioner shall i nvestigate the facts of the application and the other requirements of this Chapter to determine: (1) that the persons who will serve as directors o r officers are qualified by character and experience; (2) that the financial strength of the significant incorporators, ten percent (10%) or more ownership, are commensura te with the undertaking; (3) that the name of the proposed company is not deceptively similar to that of another Trust Company or otherwi se misleading; (4) that the capital and surplus are not less than the required minimum; and (5) such other matters concerning the proposed Tru st Company as the Commissioner may deem relevant. (b) Within thirty (30) days after the application is filed, the Commissioner shall conduct a public hearing to cons ider the application. roposed Tru st Company as the Commissioner may deem relevant. (b) Within thirty (30) days after the application is filed, the Commissioner shall conduct a public hearing to cons ider the application. The Commissioner shall give two (2) written notices of the public hearing in a newspaper of general circulation on Gu am. Publication of such notices should be no more than fifteen (15) da ys, nor less than two (2) complete days, before the hearing date. Costs o f publication and other directly related expenses shall be paid by the appl icant. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160210. Issuance or Denial of License; Renewal. (a) If the Commissioner finds that the applicant has met all the requirements of this Chapter and other applicable l aws, the Commissioner shall, within thirty (30) days after t he conclusion of the investigation, issue a license to the applicant to conduct a Trust Company business upon the applicant =s paying the required license fee. Otherwise , the Commissioner shall deny the application and not ify the applicant in writing of the reasons for the denial. ust Company business upon the applicant =s paying the required license fee. Otherwise , the Commissioner shall deny the application and not ify the applicant in writing of the reasons for the denial. (b) All licenses granted under the Act shall expir e on the June 30 following the date of issuance. On or before June 1 of each year thereafter, every company holding a license that wi shes to renew the license for an additional year shall apply to the C ommissioner for a renewal of the license. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 9 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160211. License Fees; Renewals. (a) The initial fee to be paid for a Trust Company license must be in proportion to the authorized capitalization of the Trust Company as follows: (1) a Trust Company having a capitalization of mor e than One Hundred Thousand Dollars ($100,000.00), up to and i ncluding Five Hundred Thousand Dollars ($500,000.00), shall pay a license fee of Five Hundred Dollars ($500.00); (2) a Trust Company having a capitalization of mor e than Five Hundred Thousand Dollars ($500,000.00), up to and i ncluding One 500,000.00), shall pay a license fee of Five Hundred Dollars ($500.00); (2) a Trust Company having a capitalization of mor e than Five Hundred Thousand Dollars ($500,000.00), up to and i ncluding One Million Dollars ($1,000,000.00), shall pay a licens e fee of Seven Hundred Fifty Dollars ($750.00); and (3) a Trust Company having a capitalization of mor e than One Million Dollars ($1,000,000.00) shall pay a license fee of One Thousand Dollars ($1,000.00). (b) In addition, every Trust Company shall pay an initial license fee of One Hundred Dollars ($100.00) for each branch of fice that may be authorized by the Commissioner. (c) Thereafter, every Trust Company shall pay annu ally, on or before June 30 of each year, a license fee which mu st be in proportion to its initial paid-in capital and surplus, or to its net worth as of December 31 st of the preceding year, whichever is higher, as fol lows: (1) a Trust Company having a capitalization of les s than One Hundred Thousand Dollars ($100,000.00) shall pay a license fee of Two Hundred Fifty Dollars ($250.00); (2) a Trust Company having a capitalization of mor e than One Hundred Thousand Dollars ($100,000.00), up to and i ncluding Five 000.00) shall pay a license fee of Two Hundred Fifty Dollars ($250.00); (2) a Trust Company having a capitalization of mor e than One Hundred Thousand Dollars ($100,000.00), up to and i ncluding Five Hundred Thousand Dollars ($500,000.00), shall pay a license fee of Five Hundred Dollars ($500.00); (3) a Trust Company having a capitalization of mor e than Five Hundred Thousand Dollars ($500,000.00), up to and i ncluding One Million Dollars ($1,000,000.00), shall pay a licens e fee of Seven Hundred Fifty Dollars ($750.00); and COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 10 (4) A Trust Company having a capitalization of mor e than One Million Dollars ($1,000,000.00) shall pay a license fee of One Thousand Dollars ($1,000.00). (d) All money collected under the provisions of th is Section must be paid into the special purpose trust account as d irected under § 160307. 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. § 160212. Cancellation of License If Trust Company Fails to Open for Business. If a proposed Trust Company fails to open for busines s within six (6) months after the date the license was issued, o . § 160212. Cancellation of License If Trust Company Fails to Open for Business. If a proposed Trust Company fails to open for busines s within six (6) months after the date the license was issued, o r within an additional six (6) month extension granted by the Commissioner upon written application and for good cause shown, the Commissio ner shall issue an order canceling the Trust Company =s license. ---------- ARTICLE 3 POWERS AND MISCELLANEOUS PROVISIONS § 160301. Powers of Licensed Trust Companies; Banki ng Business Prohibited. § 160302. Investments; General Requirements. § 160303. Investments; Purchase of Securities Autho rized. § 160304. Other Requirements. § 160305. Discontinuing Business. § 160306. Commissioner in Possession. § 160307. Requirements of Reorganization Plan. § 160308. Liquidation by Commissioner. § 160309. Fidelity Bonds; Insurance. § 160310. Income Tax Rebates. § 160311. Use of Funds. § 160312. Confidentiality Treatment of Trust Inform ation. § 160301. Powers of Licensed Trust Companies; Banki ng Business Prohibited. (a) Each licensed Trust Company may: COL412201711 GCA FINANCE & TAXATION CH. nfidentiality Treatment of Trust Inform ation. § 160301. Powers of Licensed Trust Companies; Banki ng Business Prohibited. (a) Each licensed Trust Company may: COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 11 (1) act as trustee under any mortgage or bond of a ny person or of any municipality or body politic; (2) accept and execute any municipal or corporate or individual trust consistent with the laws of Guam; (3) act under the order or appointment of any cour t as guardian, administrator, receiver or trustee; (4) act as executor or trustee under any will or i nter vivos trust; (5) act as fiscal or transfer agent of any state, municipality, body politic or corporation, and in such capacity r eceive and disburse money and register, transfer and countersi gn certificates of stock, bonds and other evidences of indebtedness; (6) act as local or resident agent of foreign corp orations; (7) accept and execute any trust business; (8) acquire the fiduciary rights, powers, duties a nd liabilities of a bank, savings and loan association, thrift compan y, or Trust Company licensed pursuant to Title 11 of the Guam C ode Annotated, and upon the effective date of s, powers, duties a nd liabilities of a bank, savings and loan association, thrift compan y, or Trust Company licensed pursuant to Title 11 of the Guam C ode Annotated, and upon the effective date of such an a cquisition, the fiduciary rights, powers, duties and liabilities of the bank, savings and loan association, thrift company, or Trust Comp any vest in and must be performed by the acquiring Trust Company; and (9) do and perform all acts necessary to exercise the powers enumerated in this Subsection and authorized by thi s Chapter. (b) A Trust Company may not engage in any banking business by accepting deposits or making loans. 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. § 160302. Investments; General Requirements. (a) Every Trust Company: (1) shall keep all trust funds and investments sep arate from the assets of the Company (These funds shall not be min gled with the securities and investments of any other trust or of the corporation, and all investments made by the Company as a fiduci ary must be designated so that the trust or estate to which the investments belong may be clearly identified.); COL412201711 GCA FINANCE & oration, and all investments made by the Company as a fiduci ary must be designated so that the trust or estate to which the investments belong may be clearly identified.); COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 12 (2) holding trust funds for more than twenty-four (24) hours, awaiting investment or distribution, must deposit o r leave on deposit such funds with a local financial institution (Such funds must not be deposited or left with the Trust Company or with an affiliate corporation or association, unless that affiliate corporation or association first pledges, as security for the depo sit, securities eligible for investment by local financial institut ions which have a market value equal to that of the deposited funds. No security is required with respect to any portion of such deposi ts which is insured under the provisions of any law of the Unit ed States.); (3) acting in any capacity under a court trust or private trust, unless the instrument creating the trust provides otherwi se, may cause any securities held by it in its representati ve capacity to be registered in the name of a nominee or nominees of the Company; and (4) when acting t creating the trust provides otherwi se, may cause any securities held by it in its representati ve capacity to be registered in the name of a nominee or nominees of the Company; and (4) when acting as depositary or custodian for the personal representative of a court trust or private trust, unless the instrument creating the trust provides otherwise, may with the consent of the personal representative of the trust, cause any sec urities held by it to be registered in the name of a nominee or nominees of the Company. (b) Every Trust Company is liable for any loss occ asioned by the acts of its nominees with respect to securities reg istered under this Section. (c) No corporation or the registrar or transfer ag ent of the corporation is liable for registering or causing to be registered on the books of the corporation any securities in the name of any nominee of a Trust Company, or for transferring or causing to be transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a Trust Company, when th e transfer is made on the authorization of the nominee. transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a Trust Company, when th e transfer is made on the authorization of the nominee. (d) Except as provided in Subsection (e), a Trust Company =s investments of invested capital and earnings, must: (1) be U.S. governmental obligations or Federally insured deposits; or (2) be investment grade securities and mature with in three (3) years after acquisition. The aggregate market value of all COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 13 investments must equal or exceed sixty percent (60% ) of the Company =s current capital, surplus and undivided profits, o r sixty percent (60%) of the Company =s capital and surplus when it was organized, whichever is greater. (e) A Trust Company may purchase or rent land, fac ilities and equipment for use in the daily activities of the co mpany. 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. § 160303. Investments; Purchase of Securities Autho rized. (a) A Trust Company which is acting as a fiduciary or agent shall, in its discretion or at the direction of o the authority of 1 GCA § 1606. § 160303. Investments; Purchase of Securities Autho rized. (a) A Trust Company which is acting as a fiduciary or agent shall, in its discretion or at the direction of another pe rson who is authorized to direct the investment of money held by the Trust Co mpany as a fiduciary or agent, make investments in accordance with the U niform Prudent Investors Act, as adopted in 1994 by the National C onference of Commissioners on Uniform State Laws, if : (1) the investment trust or investment company is r egistered with the Commissioner; and (2) the portfolio of the investment trust or invest ment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relatio nship. (b) A Trust Company or an affiliate of the Trust C ompany may provide services to the investment trust or investm ent company, including, without limitation, acting as an investm ent adviser, custodian, transfer agent, registrar, sponsor, distributor or manager, and may receive reasonable compensation for the services. The manne r in which the compensation is calculated must be disclosed to the person who is currently receiving onsor, distributor or manager, and may receive reasonable compensation for the services. The manne r in which the compensation is calculated must be disclosed to the person who is currently receiving the benefits of the fiduciary o r agency relationship with the Trust Company. The disclosure shall be mad e in a prospectus, a report to the Trustor or manner prescribed by the C ommissioner. (c) A Trust Company may deposit money held by the Trust Company as a fiduciary or agent with an affiliate b efore investing or making other disposition of the money. 2017 NOTE: Subsection/subitem designations altered/added pursu ant to the authority of 1 GCA § 1606. § 160304. Other Requirements. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 14 (a) Annual Statement . Every Trust Company that is licensed under the Act shall, on or before May 1 of each year, fil e with the Commissioner, a financial statement verified under oath by two (2) executive officers of the company, setting forth it s financial condition, transactions and affairs as of the 31 st day of December immediately preceding, in accordance with generally accepted ac counting principles plus any additional etting forth it s financial condition, transactions and affairs as of the 31 st day of December immediately preceding, in accordance with generally accepted ac counting principles plus any additional information required by the Com missioner. (b) Annual Audit. Every Trust Company that is lice nsed under the Act shall file an annual audit report to accompany the filing of an annual statement prior to May 1 of each year. The audit re port shall be rendered by its appointed, Independent Auditor as approved b y the Commissioner, and shall cover the financial condition, transactio ns and affairs as of the 31 st day of December immediately preceding in accordanc e with generally accepted auditing standards. The audited report shall include an unqualified opinion with respect to the financial c ondition of the Company, except that the Commissioner may accept qualified opinion s at the discretion of the Commissioner. (c) Notification. An auditor who is aware that the Trust Company failed to meet the necessary capital and surplus re quirements of the Act, or who has rendered other than an unqualified opini on on the financial condition of a Trust Company, and the president of the Trust o meet the necessary capital and surplus re quirements of the Act, or who has rendered other than an unqualified opini on on the financial condition of a Trust Company, and the president of the Trust Company shall both notify the Commissioner in writing withi n fifteen (15) days of the discovery of failure of the Trust Company to me et the capital or surplus requirements of the Act or within fifteen ( 15) days of the issuance of such qualified opinion. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160305. Discontinuing Business. (a) Whenever any Trust Company desires to disconti nue its trust business, it shall do the following: (1) publish the intention of the company, once a we ek for three (3) consecutive weeks in a newspaper of general cir culation on Guam; and (2) submit an affidavit to the Commissioner that al l the obligations and indebtedness arising from its trust business and operations on Guam have been satisfactorily dischar ged. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 15 (b) After the Trust Company has furnished proof of publication and the affidavit, and no objection to discontinue busi . COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 15 (b) After the Trust Company has furnished proof of publication and the affidavit, and no objection to discontinue busi ness or no proof is submitted by any claimant of an outstanding receiva ble or claim against the Trust Company, the Commissioner shall enter an order canceling the Trust Company =s license. 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. § 160306. Commissioner in Possession. (a) The Commissioner may take possession of a Trust Company if , after a hearing, the Commissioner shall find: (1) its capital is impaired or it is otherwise in a n unsound condition; (2) its business is being conducted in an unlawful or unsound manner; (3) it is unable to continue normal operations; or (4) its examination has been obstructed or impeded. (b) The Commissioner shall take possession by posti ng upon the premises a notice reciting that the Commissioner is assuming possession pursuant to this Act, and the time, not earlier than the posting of the notice, when the Commissioner’s possession shall be deemed to commence. e reciting that the Commissioner is assuming possession pursuant to this Act, and the time, not earlier than the posting of the notice, when the Commissioner’s possession shall be deemed to commence. A copy of the notice shall be filed in th e U.S. District Court of Guam. The Commissioner shall notify the trustor of all the trusts under the management of the Trust Company. (c) When the Commissioner has taken possession of a Trust Company, the Commissioner shall be vested with the full and exclusive power of management and control, including the powe r to continue or to discontinue the business, to stop or to limit the p ayment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the Trust Company, to com mence, defend and conduct in its name any action or proceeding in whi ch it may be a party, to terminate the Commissioner’s possession by resto ring the Trust Company to its board of directors and to reorganize or liquidate the Trust Company in accordance with this Act. As soon as pra cticable after taking possession, the Commissioner shall make an inventor y of the assets and file a copy thereof with the U.S. District Court of Guam. any in accordance with this Act. As soon as pra cticable after taking possession, the Commissioner shall make an inventor y of the assets and file a copy thereof with the U.S. District Court of Guam. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 16 (d) When the Commissioner has taken possession ther e shall be a postponement until six (6) months after the commenc ement of such possession of the date upon which any period of lim itation fixed by a statute or agreement would otherwise expire on a cl aim or right of action of the Trust Company, or upon which an appeal must be taken or a pleading or other document must be filed by the Tru st Company in any pending action or proceeding. (e) If, in the opinion of the Commissioner, an emergency e xists which will result in serious losses to the trustors and creditors, the Commissioner may take possession of the Trust Compa ny without a prior hearing. Within ten (10) days after the Commi ssioner has taken possession, any interested party may file an applic ation with the U.S. District Court of Guam for an order vacating such p ossession. The U.S. Within ten (10) days after the Commi ssioner has taken possession, any interested party may file an applic ation with the U.S. District Court of Guam for an order vacating such p ossession. The U.S. District Court of Guam shall grant the application if it finds that the action of the Commissioner was unauthorized under t his Act. (f) If the Commissioner shall determine to liquidate the Trust Company, the Commissioner shall give such notice of the Commissioner’s determination to the directors, stoc kholders and the trustors. Any objection to the liquidation shall be filed with the U.S. District Court of Guam within thirty (30) days afte r such notice. Unless within thirty (30) days thereafter, the U.S. Distri ct Court of Guam issues an order staying the liquidation, the Commissioner shall proceed to liquidate the Trust Company. (g) If the Commissioner determines to reorganize the Trus t Company, or the U.S. District Court of Guam, after staying its liquidation, orders such reorganization, the Commis sioner, after according a hearing to all interested parties, shal l propose a reorganization plan. e U.S. District Court of Guam, after staying its liquidation, orders such reorganization, the Commis sioner, after according a hearing to all interested parties, shal l propose a reorganization plan. A copy of the Plan shall be se nt to each trustor and creditor who will not receive payment of the Commissioner’s claim in full under the Plan, together with notice. Unless within thirty (30) days the Plan is disapproved in writing by persons holdi ng one-third (1/3) or more of the aggregate amount of such claims, the Co mmissioner will proceed to effect the reorganization. A department or agency of the government of Guam holding a claim which will not be paid in full is authorized to participate as any other creditor. (h) No judgment, lien or attachment shall be execut ed upon any asset of the Trust Company while it is in the posse ssion of the COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 17 Commissioner. Upon the election of the Commissioner in connection with a liquidation or reorganization: (1) any lien or attachment, other than a mechanic =s lien, obtained upon any asset of the Trust Company during the Commissioner =s possession or within four (4) with a liquidation or reorganization: (1) any lien or attachment, other than a mechanic =s lien, obtained upon any asset of the Trust Company during the Commissioner =s possession or within four (4) months prior to commencement thereof, shall be vacated, except liens created by the Commissioner while in possession; and (2) Any transfer of an asset of the Trust Company m ade after or in contemplation of its insolvency with intent t o effect a preference shall be voided. (i) With the approval of the U.S. District Court of Guam, the Commissioner may borrow money in the name of the Tr ust Company and may pledge its assets as security for the loan. (j) All necessary and reasonable expenses of the Co mmissioner =s possession of a Trust Company and of its reorganiza tion or liquidation shall be defrayed from the assets thereof. § 160307. Requirements of Reorganization Plan. (a) A plan or reorganization shall not be prescribed under this Act, unless : (1) the plan is feasible and fair to all classes of trustors, creditors and stockholders; (2) the face amount of the interest accorded to any trustors, creditors or stockholders under the Plan does not exceed the value of the assets upon ll classes of trustors, creditors and stockholders; (2) the face amount of the interest accorded to any trustors, creditors or stockholders under the Plan does not exceed the value of the assets upon liquidation, less that full amou nt of the claims of all prior classes, subject, however , to any fair adjustment for new capital that any class will pay in under the Plan; (3) the Plan provides for the issuance of common st ock in an amount that will provide an adequate ratio to all a ssets held in trust by the Trust Company; (4) the Plan assures the removal of any director, o fficer or employee responsible for any unsound or unlawful ac tion or the existence of an unsound condition; and (5) any merger or consolidation provided by the Pla n conforms to the requirements of this Act. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 18 (b) Whenever in the course or reorganization superv ening conditions render the Plan unfair, or its execution impractical, the Commissioner may modify the Plan or liquidate the i nstitution. Any such action shall be taken by order of the U.S. District Court of Guam upon appropriate notice. § 160308. Liquidation by Commissioner. missioner may modify the Plan or liquidate the i nstitution. Any such action shall be taken by order of the U.S. District Court of Guam upon appropriate notice. § 160308. Liquidation by Commissioner. (a) In liquidating a Trust Company, the Commissione r may exercise any power thereof, but the Commissioner shall not , without the approval of the U.S. District Court of Guam: (1) sell any asset of the Trust Company having a va lue in excess of One Thousand Dollars ($1,000.00); (2) compromise or release any claim, if the amount of the claim exceeds Five Hundred Dollars ($500.00), exclusive o f interest; or (3) make any payment on any claim, other than a cla im upon an obligation incurred by the Commissioner, before pre paring and filing a schedule of the Commissioner’s determinati ons in accordance with this Act. (b) Within six (6) months of the commencement of li quidation, the Commissioner may by the Commissioner’s election ter minate any executory contract for services or advertising to w hich the Trust Company is a party, or any obligation of the Trust Company as a lessee. A lessor who receives sixty (60) days notice of the Commissioner’ =s election to terminate the lease shall to w hich the Trust Company is a party, or any obligation of the Trust Company as a lessee. A lessor who receives sixty (60) days notice of the Commissioner’ =s election to terminate the lease shall have no claim for rent other than rent accrued to the date of termination, nor for damages for such termination. (c) As soon after the commencement of liquidation a s is practicable, the Commissioner shall take the necessary steps to terminate all fiduciary positions held by the Trust Company, and take such action as may be necessary to surrender all property held by the Tru st Company as a fiduciary and to settle its fiduciary accounts. (d) As soon after the commencement of liquidation a s practicable, the Commissioner shall send notice of the liquidati on to each known trustor and creditor. The notice shall also be publ ished in a newspaper of general circulation on Guam once a week for three ( 3) successive weeks. The Commissioner shall send with the notice a state ment of the amount shown on the books of the Trust Company to be the c laim of the trustor or creditor. The notice shall demand that if the amount claimed differs COL412201711 GCA FINANCE & TAXATION CH. t of the amount shown on the books of the Trust Company to be the c laim of the trustor or creditor. The notice shall demand that if the amount claimed differs COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 19 from that stated on the notice to be due, be filed with the Commissioner before a specified date not earlier than sixty (60) days thereafter in accordance with the procedure prescribed in the not ice. (e) Within six (6) months after the last day specif ied in the notice for the filing of claims or such longer period as m ay be allowed by the U.S. District Court of Guam in which notice of poss ession has been filed, the Commissioner shall: (1) reject any claim if the Commissioner doubts the validity thereof; (2) determine the amount, if any, owing to each known Trustor or creditor; (3) prepare a schedule of the Commissioner’s determ ination for filing in the U.S. District Court of Guam in which notice of possession was filed; and (4) notify each person whose claim has not been allowed in full, and publish once a week for three (3) success ive weeks a notice of the time when and the place where the schedule o f determinations will be available for n whose claim has not been allowed in full, and publish once a week for three (3) success ive weeks a notice of the time when and the place where the schedule o f determinations will be available for inspection and the date, not sooner than thirty (30) days thereafter, when the Commissioner will fi le the Commissioner’s schedule in Court. (f) Within thirty (30) days after the filing of the Commissioner’ =s schedule, any trustor or creditor or stockholder ma y file an objection to any determination made. Any objections so filed sha ll be heard and determined by the Court, upon such notice to the Co mmissioner and interested claimants as the Court may prescribe. If the objection is sustained, the Court shall direct an appropriate mo dification of the schedule. After filing the Commissioner’s schedule, the Commissioner may, from time to time, make partial distribution t o the holders of claims which are undisputed or have been allowed by the Co urt, if a proper reserve is established for the payment of disputed claims. As soon as is practicable after the determination of all objectio ns, the Commissioner shall make final distribution. he Co urt, if a proper reserve is established for the payment of disputed claims. As soon as is practicable after the determination of all objectio ns, the Commissioner shall make final distribution. (g) The following claims shall have priority: (1) obligations incurred by the Commissioner; (2) wages and salaries of officers and employees ea rned during the four (4) month period preceding the Commissione r =s possession COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 20 in an amount not exceeding Three Thousand Dollars ($3,000.00) for any one (1) person; and (3) fees and assessments due to the government of G uam. (h) After the payment of all other claims which wer e timely filed, the Commissioner shall pay claims otherwise proper which were not filed within the time prescribed. If the sum available for any class is insufficient to provide payment in full, such sum s hall be distributed to the claimants in the class pro rata . (i) Any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests. e distributed to the claimants in the class pro rata . (i) Any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests. (j) Unclaimed funds remaining after completion of t he liquidation shall be retained for ten (10) years by the Commiss ioner, unless sooner claimed by the owner. At the expiration of such per iod, the remaining sum shall be transferred to the Treasurer of Guam a s abandoned funds. (k) When the assets have been distributed in accord ance with this Act, the Commissioner shall file an account with th e U.S. District Court of Guam. Upon approval thereof the Commissioner sha ll be relieved of liability in connection with the liquidation and th e charter of the Trust Company shall be canceled. § 160309. Fidelity Bonds; Insurance. (a) The directors of a Trust Company shall require good and sufficient fidelity bonds in the amount of Twenty-f ive Thousand Dollars ($25,000.00) or more on all active officers and emp loyees, whether or not they receive a salary or other compensation fro m the Company, to indemnify the Company against loss because of any d ishonest, fraudulent or criminal act or e officers and emp loyees, whether or not they receive a salary or other compensation fro m the Company, to indemnify the Company against loss because of any d ishonest, fraudulent or criminal act or omission by any officer or emplo yee acting alone or in combination with any other person. The bonds may be in any form and may be paid for by the Trust Company. (b) The directors shall obtain suitable insurance for their Company against burglary, robbery, theft and other hazards to which it may be exposed in the operation of its business. (c) The directors shall at least annually prescrib e the amount of penal sum of the bonds or policies and designate th e sureties and underwriters thereof, after giving due and careful consideration to all known elements and factors constituting a risk or h azard. The directors = COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 21 action must be recorded in the minutes of the board of directors and reported to the Commissioner. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160310. Income Tax Rebates. ecorded in the minutes of the board of directors and reported to the Commissioner. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160310. Income Tax Rebates. (a) Notwithstanding any other provisions of this A ct, Trust Companies licensed pursuant to the provisions of th is Chapter and any bank conducting trust business pursuant to § § 1061 51 et seq. of Title 11 of the Guam Code Annotated may apply on behalf of t he Guam-based trusts under their management, for a Special Qualif ying Certificate (>QC =) from the Guam Economic Development Authority, whi ch would allow a one hundred percent (100%) tax rebate as au thorized under §§ 58128.6(a) and (b) of Chapter 58 of Title 12 of the Guam Code Annotated. (1) Provided, however , notwithstanding any other provision of this Section, the tax rebate shall not apply to trust property which has been employed in a business in which the settlo r was engaged and trust property which is used to embark upon a b usiness for the settlor or the beneficiary. (2) For the purposes of this Subsection, business has the same meaning as engaging in or carrying on a business as in the Business License Law in § pon a b usiness for the settlor or the beneficiary. (2) For the purposes of this Subsection, business has the same meaning as engaging in or carrying on a business as in the Business License Law in § 70103(e) of Title 11 of the Guam C ode Annotated, and includes only businesses which are r equired to be licensed, or are excepted from obtaining a license pursuant to the policy and provisions of §§ 70102 and 70130 of Titl e 11 of the Guam Code Annotated. (b) The Guam Economic Development Authority is her eby authorized to promulgate rules and regulations to i mplement a Special QC program to allow for expeditious processing of r equests by Trust Companies or trustees of Guam-based trusts, for ben efits as provided under §§ 58128.6(a) and (b) of Chapter 58 of Title 12 of the Guam Code Annotated. (c) A true copy of the Special QC shall be attache d to each tax return of the Guam-based trust, and the amount of t ax due prior to the rebate shall be deposited with the government at th e time of filing of each income tax return. Taxes deposited on behalf o f a Guam-based trust shall not be placed in the General Fund or commingled with o ther funds, COL412201711 GCA FINANCE & TAXATION CH. of filing of each income tax return. Taxes deposited on behalf o f a Guam-based trust shall not be placed in the General Fund or commingled with o ther funds, COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 22 but shall be deposited by the Director of Revenue a nd Taxation in special purpose trust accounts in one (1) or more FDIC insu red banks with offices within Guam, and shall be withdrawn from su ch accounts only for the purpose of: (1) making rebates as provided herein; or (2) making payments as provided in § 160308. (d) Upon the application of the Guam-based trust a t the completion of the one hundred eighty (180) days from the date of filing of income tax returns, the Director of Revenue and Taxation s hall immediately thereafter cause the refund of the income tax to th e Guam-based trust. 2017 NOTE: Subsection/subitem designations altered/added pursu ant to the authority of 1 GCA § 1606. § 160311. Use of Funds. (a) The income tax payments made under the Special QC program, shall be returned to the respective trusts at the c ompletion of the one hundred eighty (180) day period without interest. Use of Funds. (a) The income tax payments made under the Special QC program, shall be returned to the respective trusts at the c ompletion of the one hundred eighty (180) day period without interest. (b) The first One Million Dollars ($1,000,000) gen erated from the trust shall be authorized and appropriated to the G uam Memorial Hospital Authority. All other revenues generated fr om the implementation of this Act, including, but not limi ted to, the initial and annual License Fees, Examination Fees and interest earned from these funds, shall be allocated as follows: (1) subject to legislative appropriation, up to fif ty percent (50%) to the Chamorro Land Trust Commission, for th e purposes of infrastructure development (i.e. roads, power, wate r, sewer and telephone services) on Chamorro Land Trust properti es; (2) subject to legislative appropriation, up to ten percent (10%) shall be earmarked for the Department of Reve nue and Taxation for maintaining the operational functions of the government of Guam; (3) subject to legislative appropriation, up to ten percent (10%) of this revenue, shall be remitted immediatel y to the Guam Economic Development Authority for the development he government of Guam; (3) subject to legislative appropriation, up to ten percent (10%) of this revenue, shall be remitted immediatel y to the Guam Economic Development Authority for the development and promotion of Guam =s financial services industry; and COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 23 (4) all remaining revenues generated from the imple mentation of this Act shall be remitted to the General Fund t o be appropriated by I Liheslaturan Guåhan. SOURCE: Added by P.L. 25-73. Item 2 amended by P.L. 25-150: 17. 2017 NOTE: Subsection/subitem designations added/altered pursu ant to the authority of 1 GCA § 1606. § 160312. Confidentiality Treatment of Trust Inform ation. All information pertaining to Guam-based trusts sha ll be deemed proprietorial and confidential unless : (a) the Commissioner deems it in the public interes t to make such information available for public inspection; or (b) the Grantor/Trust authorizes the Commissioner t o make available such information for public inspection. ---------- ARTICLE 4 EXAMINATION AND REGULATION § 160401. Examination; Powers and Duties of Departm ent of Revenue and Taxation. § 160402. r t o make available such information for public inspection. ---------- ARTICLE 4 EXAMINATION AND REGULATION § 160401. Examination; Powers and Duties of Departm ent of Revenue and Taxation. § 160402. Fees for Examination; Frequency of Examin ation. § 160403. Applicability of Other Provisions of Titl e. § 160404. Regulations of Commissioner. § 160401. Examination; Powers and Duties of Departm ent of Revenue and Taxation. (a) The Commissioner of Banking and Insurance, or any examiner duly authorized, shall once during each year make a full examination into all the books, papers and affairs or any Trust Comp any doing business under §§ 160301, 160302, 160303 and 160304 of this Chapter, and in so doing, shall have power to administer oaths and aff irmation and to examine on oath or affirmation the officers, agents and clerks of such company, touching the matter which they may be auth orized to inquire into and examine, and to summon, and by subpoena co mpel the attendance of any person(s) on Guam to testify unde r oath in relation to the affairs of such company. COL412201711 GCA FINANCE & TAXATION CH. and examine, and to summon, and by subpoena co mpel the attendance of any person(s) on Guam to testify unde r oath in relation to the affairs of such company. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 24 (b) If the Commissioner has reason to believe the affairs of any corporation are not being conducted in compliance with said sections, the Commissioner may at any time make, or cause to be m ade, a special examination of the assets of such corporation. 2011 NOTE: Reference to the 'Banking Commisioner' changed to the 'Commissioner of Banking and Insurance' pursuant to P.L. 27-088:10 (May 6, 2004). 2017 NOTE: Subsection designations added pursuant to the autho rity of 1 GCA § 1606. § 160402. Fees for Examination; Frequency of Examin ation. (a) For each examination of a Trust Company =s books and records required or authorized under this Chapter, the Comm issioner shall charge and collect from the Trust Company a fee for conduc ting the examination and in preparing and typing the report of the examination at a reasonable rate to be established by the Commissi oner. charge and collect from the Trust Company a fee for conduc ting the examination and in preparing and typing the report of the examination at a reasonable rate to be established by the Commissi oner. (b) All money collected under this Section must be paid directly to the General Fund of the government of Guam and allo cated pursuant to § 160308. (c) The Commissioner shall examine a licensee as o ften as the Commissioner deems necessary, with cause. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160403. Applicability of Other Provisions of Titl e. In addition to other provisions of this Title which are applicable to this Title as a whole or specifically made applicab le to Trust Companies, the Commissioner may by regulation make applicable to trust companies any regulatory provision contained therein, which c an be reasonably applied and which are not inconsistent with the provisions of this Chapter. § 160404. Regulations of Commissioner. The Commissioner may adopt such regulations as may be necessary to carry out the purposes and provisions of this Ch apter. Attached [to P.L. ns of this Chapter. § 160404. Regulations of Commissioner. The Commissioner may adopt such regulations as may be necessary to carry out the purposes and provisions of this Ch apter. Attached [to P.L. 25-073] as Exhibit A are Trust Company Rules a nd Regulations of the Department of Revenue and Taxation. These Rules and Regulations are hereby approved by I Liheslaturan Guåhan as the initial Rules and Regulations for this Chapter. COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 25 2017 NOTE: These rules and regulations are found in 30 GAR Ch. 21. ---------- ARTICLE 5 UNLAWFUL ACTS ; PENALTIES § 160501. Violations by Officers or Directors Suffi cient Cause to Close Company, Liquidate Business and Revoke Licens e; Failure to Allow Inspection Constitutes Ground to R evoke License. § 160502. Penalty. § 160503. Violation of This Chapter Shall Constitut e a Misdemeanor, Unless Otherwise Specified. § 160501. Violations by Officers or Directors Suffi cient Cause to Close Company, Liquidate Business and Revoke Licens e; Failure to Allow Inspection Constitutes Ground to Revoke Licen se. Specified. § 160501. Violations by Officers or Directors Suffi cient Cause to Close Company, Liquidate Business and Revoke Licens e; Failure to Allow Inspection Constitutes Ground to Revoke Licen se. (a) The violation of any of the provisions of this Chapter by the officers or directors of any Trust Company authoriz ed to do business under the provisions of this Chapter is sufficient cause for the Commissioner to close the Trust Company, liquidate its business and revoke its license. (b) If any officer or director of a Trust Company refuses to allow the Commissioner or the Commissioner =s deputies to inspect all books, records, papers and effects of its business, the Co mmissioner may revoke its license and proceed to terminate its affairs. (c) Unlawful concealment of transactions. (d) Improper maintenance of accounts, false or dec eptive entries and statements. 2017 NOTE: Subsection designations altered pursuant to the aut hority of 1 GCA § 1606. § 160502. Penalty. Every officer, employer, director or agent of a Tru st Company who knowingly or willfully neglects to perform any duty required by this Chapter or other applicable law, or who knowingly o r willfully fails to conform ployer, director or agent of a Tru st Company who knowingly or willfully neglects to perform any duty required by this Chapter or other applicable law, or who knowingly o r willfully fails to conform to any material lawful requirement made by the Commissioner, is subject to removal upon order of the Commissione r, and upon COL412201711 GCA FINANCE & TAXATION CH. 160 GUAM -BASED TRUST COMPANIES ACT 26 conviction shall be punished by either imprisonment of not less than one (1) year, and not to exceed six (6) years, or by a fine of not more than Five Thousand Dollars ($5,000.00), or by both fine and imprisonment. § 160503. Violation of This Chapter Shall Constitut e a Misdemeanor, Unless Otherwise Specified. Where no other punishment is otherwise provided by law, any person violating any provision of this Chapter is g uilty of a misdemeanor. ---------- COL4122017
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