Chapter 7

COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.7NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES 1CHAPTER 7 NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES § 7101. Short Title. § 7102. Definitions. § 7103. Prohibition Against Credit Counseling. § 7104. Organization of Agency . § 7105. Num ber of Members. § 7106. Notice of Intention. § 7107. Bond. § 7108. Books and Records. § 7109. Powers of Agencies. § 7110. Separate Accounts. § 7111. Fees. § 7112. Violations. § 7113. Credit Counseling Under this Chapter Not Practice of Law . § 7101. Short Title. This Chapter shall be known and may be cited as Uniform Consumer Credit Code -Nonprofit Consumer Credit Counsel ing Agencies. § 7102. Definitions. (1)Credit counseling means provid ing specialized personal and group counseling services to individu als of the general public who are suffering or who may suffer eco nomic hardship because of the extension of credit; acting as agents for such individuals in seeking to resolve their econom ic difficulties; or receiving from such individuals money or other things of value for disbursement to one or more of their creditor s.

agents for such individuals in seeking to resolve their econom ic difficulties; or receiving from such individuals money or other things of value for disbursement to one or more of their creditor s. (2) Credit counseling does not include: (a) providing counseling services by employers to their employees without charges; (b) providing counseling services by organizations not organized for profit and organized principally for purposes other than prov iding such counseling services, without charge or at a nominal charge; (c) providing counseling services and the disburse ment of proceeds of credit transac tions on behalf of actual or potential debtors by persons who regularly act as creditors and who of fer such services or disburse such proceeds without direct COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.7NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES 2compensation therefor and in furtherance of their credit business; (d) activities of title insurers and ab stract companies in doing an escrow business; (e) the business of advising, counseling or directing persons in their investments and in the organization and management of their affairs or the business of managing income or

ng an escrow business; (e) the business of advising, counseling or directing persons in their investments and in the organization and management of their affairs or the business of managing income or property, by their full-time employees or under an exclusive contract, the primary purpose of which is not the liquidation of existing indebtedness. (3) Agency means a nonprofit consumer credit counsel ing agency organized under this Chapter . § 7103. Prohibition Against Credit Counseling. No person shall engage in or hold himself out to engage in the business of credit couns eling other than: (1) agencies as authorized by this Chapter; (2) attorneys -at-law rendering services in the course of their practice; (3) judicial officers or others acting pursuant to court order or direction; (4) duly constituted nonprofit legal aid or assistance bureaus; or (5) persons substantially financed by governmental grants or appropriations but only to the extent of the terms of such grants or appropriations. CROSS -REFERENCES: For the latest law on who may and may not practice law , and what tha t constitutes, see 7 GCA Chapter 9A. § 7104. Organization of Agen cy.

terms of such grants or appropriations. CROSS -REFERENCES: For the latest law on who may and may not practice law , and what tha t constitutes, see 7 GCA Chapter 9A. § 7104. Organization of Agen cy. (1) An agency shall be organized in the manner provid ed for the organization of nonprofit, nonstock corporations under the Civil Code of Guam. (2) An agency shall have all the powers, rights and privileges of a corporation, under the statute under which it is organized, except as the provisions of the statue are inconsis tent with this Chapter . (3) An agency shall not be conducted or operated for profit and no part of its net earn ings or other assets shall inure to the benefit of any member or other person except to the extent necessary and appropriate to COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.7NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES 3the accomplishment of its purpos es under this Chapter . (4) The certificate of incorporation of every corporation formed pursuant to theprovisions of this Chapter shall have endorsed thereon or annexed thereto the approval of the Chairman of the Judicial Council of Guam. [Added by P .L.

tion of every corporation formed pursuant to theprovisions of this Chapter shall have endorsed thereon or annexed thereto the approval of the Chairman of the Judicial Council of Guam. [Added by P .L. 9 -253, approved September 4, 1968, effective June 30, 1969.] § 7105. Number of Members. An agency s hall have at least ten (10) members. § 7106. Notice of Intention. An agency , before engaging in credit counseling, shall give notice to the Administrator of its intention to do so. The notice shall state: (1) name of the agency; (2) name in which busine ss is transacted if different from (1); (3) address of principal office and all other offices; (4) names and addr esses of all officers and directors. § 7107. Bond. The agency shall file with the Administra tor a bond to be approved by it, in which the agency shall be the obligor, in the sum of Five Thousand Dollars ($5,000.00), with one or more sureties, whose liability as sureties need not exceed that sum in the aggregate. The bonds shall run to the Territory for the use of the Territory and of any pe rson or persons who may have a course of action against the obligor in the bond under the provisions of this Chap ter, and shall be

all run to the Territory for the use of the Territory and of any pe rson or persons who may have a course of action against the obligor in the bond under the provisions of this Chap ter, and shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this Chapter and will pay to any such person or persons any and all moneys that may become due or owing to such person or persons from the obligor under and by virtue of the provisions of this Chapter . § 7108. Books and Records. Each agency engaged in credit counseling shall preserve its b ooks, accounts and records for at least two (2) years after making the final entry on any trans action recorded therein. § 7109. Powers of Agencies. An agency shall have the powers and privileges:COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.7NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES 4(1) to provide specialized credit counseling service to individuals of the general public in the area of consumer credit; (2) to handle moneys or other property as agent or act as trustee in relation to the care, custody or management of such moneys or property for individual debtors being counseled; (3) to ac t as trustees or

handle moneys or other property as agent or act as trustee in relation to the care, custody or management of such moneys or property for individual debtors being counseled; (3) to ac t as trustees or other statutory agent or represen tative in bankruptcy or state wage earner, garnishment or similar proceedings, and to receive and distribute moneys or other property to be paid or distributed in the proceedings; (4) to charge reasonable fees in accordance with this Chapter for services rendered or to be rendered to individual debtors, including, but not limited to, meetings or communica tions with debtors' creditors or employers, appearances before judicial or other official bodies and re ceipt, care and distribu tion of debtors' income and other assets; (5) to accept such assignments of wages of a debtor as are authorized or permitted under the laws of this Territory; (6) to publicize its services to the public; (7) to conduct group couns eling services and educational programs with or without charge on matters involving consum er credit; (8) to disseminate information relating to consumer credit; and (9) to solicit and accept contributions. § 7110. Separate Accounts.

grams with or without charge on matters involving consum er credit; (8) to disseminate information relating to consumer credit; and (9) to solicit and accept contributions. § 7110. Separate Accounts. An agency shall not commin gle moneys or property received by it from debtors with the agency's own moneys or property . An agency shall maintain a separate account in which all moneys received from or held for debtors for the benefit of creditors shall be deposited and in wh ich all such moneys shall remain until disbursements are made to the debtor or on his behalf, including the agency's fee. § 7111. Fees. A schedule of fees to be charged by an agency shall be submitted to the Administrator . The schedule of fees may not be inconsistent with or inappropriate to the charac ter and function of the agency as a nonprofit agency her eunder. COL12010614GCA UNIFORM CONSUMER CREDIT CODE CH.7NONPROFIT CONSUMER CREDIT COUNSELING AGENCIES 5§ 7112. V iolations. Any person who willfully violates any provision of this Chapter is guilty of a misdemeanor . § 7113. Credit Counseling Under This Chapter Not Practice of Law .

UNSELING AGENCIES 5§ 7112. V iolations. Any person who willfully violates any provision of this Chapter is guilty of a misdemeanor . § 7113. Credit Counseling Under This Chapter Not Practice of Law . Credit counseling by an agency in accordance with the provisions of this Chapter shall not constitute practice, appear ance or advice as an attorney -at-law or as an attor ney a nd counselor -at-law, the practice of law or the rendering of legal services. CROSS -REFERENCES: For the latest law on what is and what is not the practice of law , and who may practice law , see 7 GCA Chapter 9A. ----------