Chapter 35

COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 1PART 2 LIENS Chapter 35. Liens in General. Chapter 36. Mortgages. Chapter 37. Bottomry. Chapter 38. Respondentia. Chapter 39. Other Liens. CHAPTER 35 LIENS IN GENERAL Article 1. Definition of Liens. Article 2. Creation of Liens. Article 3. Effec t of Liens. Article 4. Priority of Liens. Article 5. Redemption from Liens. Article 6. Extinction of Liens. ARTICLE 1 DEFINI TION OF LIENS § 35101. Lien. § 35102. General or Special Liens. § 35103. General Lien Described. § 35104. Special Lien. § 35105 .Prior Lien. § 35106. Contracts Covered by this Chapter. § 35101. Lien. A lienis a charge imposed in some mode other than by a transfer in trust upon specific property by which it is made security for the performance of an act. SOURCE: CC § 2872. § 351 02. General or Special Liens. Liens are either general or special. SOURCE: CC § 2873.COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 2§ 35103. General Lien Described. A general lien is one which the holder thereof is entitled to enforce as a security for the performance of all the obligations, or all of a particular class of obligations, which exist in his

cribed. A general lien is one which the holder thereof is entitled to enforce as a security for the performance of all the obligations, or all of a particular class of obligations, which exist in his favor against the owner of the property. SOURCE: CC § 2874. § 35104. Special Lien. A special lien is one which the holder thereof can enforce only as security for the performance of a particular ac t or obligation, and of such obligations as may be incidental thereto. SOURCE: CC § 2875. § 35105. Prior Lien. Where the holder of a special lien is compelled to satisfy a prior lien for his own protection, he may enforce payment of the amount so paid by him, as a part of the claim for which his own lien exists. SOURCE: CC § 2876. § 35106. Limited to Contracts Covered by this Chapter. Contracts of mortgage, bottomry and respondentia, are all subject to the provisions of this Chapter. SOURCE: CC § 2877. NOTE:Article II of Chapter II [Mortgage of Personal Property], Chapter II -A [Conditional Sales] and Chapter III [Pledge], all of Title XIV of the Civil Code, were all repealed out of the Civil Code by P.L. 13 -150 as part of the enactment of the Uniform Comm ercial Code.

-A [Conditional Sales] and Chapter III [Pledge], all of Title XIV of the Civil Code, were all repealed out of the Civil Code by P.L. 13 -150 as part of the enactment of the Uniform Comm ercial Code. The concepts and law which replaced these chapters are found within the UCC, which is Title 13 of this Code (Guam Code Annotated). NOTE: No 1970 Civil Code '§ 2878-2880 existed. ---------- ARTICLE 2 CREATION OF LIENS § 35201. How Liens are C reated. § 35202. No lien, Claim not Due. § 35203. Lien Future Interest.COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 3§ 35204. Contract Liens. § 35201. How Liens are Created. A Lien is Created: 1. By contract of the parties; or 2. By operation of law. SOURCE: CC § 2881. § 35202. No Lien, Claim not Du e. No lien arises by mere operation of law until the time at which the act to be secured thereby ought to be performed. SOURCE: CC § 2882. § 35203. Lien Future Interest. An agreement may be made to create a lien upon property not yet acquired by the part y agreeing to give the lien, or not yet in existence. In such case the lien agreed for attaches from the time when the party agreeing to give it acquires an interest in the thing,

cquired by the part y agreeing to give the lien, or not yet in existence. In such case the lien agreed for attaches from the time when the party agreeing to give it acquires an interest in the thing, to the extent of such interest. SOURCE: CC § 2883. § 35204. Contract Liens. A lien may be creat ed by contract, to take immediate effect, as security for the performance of obligations not then in existence. SOURCE: CC § 2884. NOTE: No 1970 Civil Code '§ 2885 -2887 existed. ---------- ARTICLE 3 EFFECT OF LIENS § 35301. Contract for Lien Transfers no Title. § 35302. Certain Contracts Void. § 35303. Lien -no Personal Obligation. § 35304. Extent of Lien. § 35305. Holder not Entitled to Compensation.COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 4§ 35301. Contract for Lien Transfers no Title. Notwithstanding an agreement to t he contrary, a lien, or a contract for a lien, transfers no title to the property subject to the lien. SOURCE: CC § 2888. § 35302. Certain Contracts Void. All contracts for the forfeiture of property subject to a lien, in satisfaction of the obligation se cured thereby, and all contracts in restraint of the right of redemption from a lien, are

ts Void. All contracts for the forfeiture of property subject to a lien, in satisfaction of the obligation se cured thereby, and all contracts in restraint of the right of redemption from a lien, are void. SOURCE: CC § 2889. § 35303. Lien -No Personal Obligation. The creation of a lien does not of itself imply that any person is bound to perform the act for whic h the lien is security. SOURCE: CC § 2890. § 35304. Extent of Lien. The existence of a lien upon property does not of itself entitle the person in whose favor it exists to a lien upon the same property for the performance of any other obligation than that which the lien origi nally secured. SOURCE: CC § 2891. § 35305. Holder not Entitled to Compensation. One who holds property by virtue of a lien thereon, is not entitled to compensation from the owner thereof for any trouble or expense which he incurred r especting it, except to the same extent as a borrower, under Civil Code [1970] §§ 1892 and 1893. SOURCE: CC § 2892. NOTE: No 1970 Civil Code §§ 2893 -2896 existed. ---------- ARTICLE 4COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 5PRIORITY OF LIENS § 35401. Priority of Liens. § 35402.

C § 2892. NOTE: No 1970 Civil Code §§ 2893 -2896 existed. ---------- ARTICLE 4COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 5PRIORITY OF LIENS § 35401. Priority of Liens. § 35402. Priority of Mo rtgage. § 35403. Marshalling Different Funds. § 35401. Priority of Liens. Other things being equal, different liens upon the same property have priority according to the time of their creation, except in cases of bottomry and respondentia. SOURCE: CC § 2 897. § 35402. Priority of Mortgage. A mortgage given for the price of real property, at the time of its conveyance, has priority over all other liens created against the purchaser, subject to the operation of the recording laws. SOURCE: CC § 2898. COMMENT : See Title 21 of this code for the recording laws governing real property. § 35403. Marshalling Different Funds. Where one has a lien upon several things, and other persons have subordinate liens upon or interests in some but not all of the same things, the person having the prior lien, if he can do so without risk or loss to himself, or of injustice to other persons, must resort to the property in the following order, on the demand of any party interested: 1.

having the prior lien, if he can do so without risk or loss to himself, or of injustice to other persons, must resort to the property in the following order, on the demand of any party interested: 1. To the things upon which he has an exclusive lien; 2. To the things which are subject to the fewest subordinate liens; 3. In like manner inversely to the number of subordinate liens upon the same thing; and 4. When several things are within one of the foregoing classes, and subject to the same number of liens, resort must be had -- (1) To the things which have not been transferred since the prior lien was created; (2) To the things which have been so transferred without a valuable considera tion; andCOL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 6(3) To the things which have been so transferred f or a valuable consideration in the inverse order of the transfer. SOURCE: CC § 2899. NOTE: No 1970 Civil Code '§ 2900 -2902 existed. ----------- ARTICLE 5 REDEMPTI ON FROM LIENS § 35501. Redemption Rights: Subrogation. § 35502. Inferior Lienor Rights. § 35503. How Redemptions made. § 35501. Redemption Rights: Subrogation.

existed. ----------- ARTICLE 5 REDEMPTI ON FROM LIENS § 35501. Redemption Rights: Subrogation. § 35502. Inferior Lienor Rights. § 35503. How Redemptions made. § 35501. Redemption Rights: Subrogation. Every person having an interest in property subject to a lien, has the right to redeem it from the lien, at any time after the claim is due, and before his right of redemption is forecl osed, and, by such redemption, becomes subrogated to all the benefits of the lien, as against all owners of other interests in the property, except inso far as he was bound to make such redemption for their benefit. SOURCE: CC § 2903. § 35502. Inferior Lie nor Rights. One who has a lien inferior to another, upon the same property, has right: 1. To redeem the property in the same manner as its owner might, from the superior lien; and 2. To be subrogated to all the benefits of the superior lien, when necessar y for the protection of his interests, upon satisfying the claim secured thereby. SOURCE: CC § 2904. § 35503. How Redemptions Made. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 7Redemption from a lien is made by performing, or offering to pe rform, the act for the performance of

§ 35503. How Redemptions Made. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 7Redemption from a lien is made by performing, or offering to pe rform, the act for the performance of which it is a security , and paying, or offering to pay, the damages, if any, to which the holder of the lien is entitled for the delay. SOURCE: CC § 2905. NOTE: No 1970 Civil Code '§ 2906 -2908 existed. ---------- ARTICLE 6 EXTINCTION OF LIENS § 35601. Lien Accessory; General ly. § 35602. Extinction by Sale or Conversion. § 35603. How Extinguished. § 35604. Apportionment. § 35605. When Restoration Extinguishes Lien. § 35601. Lien Accessory; Generally. A lien is deemed accessory to the act for the performance of which it is asecurity, whether any person is bound for such performance or not, and is extinguishable in like manner with any other accessory obligation. SOURCE: CC § 2909. § 35602. Extinction by Sale or Conversion. The sale of any property on which there is a lien, in satisfaction of the claim secured there by, or in case of personal property, its wrong ful conversion by the person holding the lien, extinguished the lien thereon. SOURCE: CC § 2910. § 35603. How Extinguished.

n of the claim secured there by, or in case of personal property, its wrong ful conversion by the person holding the lien, extinguished the lien thereon. SOURCE: CC § 2910. § 35603. How Extinguished. A lien is extin guished by the lapse of t ime within which, under the provisions of Title 7 of the Guam Code Annotated [Civil Procedure], an action can be brought upon the principal obligation. SOURCE: CC § 2911.COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL 8§ 35604. Apportionment. The partial perfor mance of an act secured by a lien does no t extinguish the lien upon any part of the proper ty subject thereto, even if it is divisible. SOURCE: CC § 2912. § 35605. When Restoration Extinguishes Lien. The voluntary restoration of property to its owner by the holder of a lien thereon, depen dent u pon possession, extinguishes the lien as to such property, unless otherwise agreed by the parties, and extinguishes it, notwithstanding any such agreement, as to creditors of the owner and persons, subsequently acquiring a title to the property, or a lien thereon, in good faith, and for value. SOURCE: CC § 2913. NOTE: No 1970 Civil Code '§ 2914 -2919 existed.

creditors of the owner and persons, subsequently acquiring a title to the property, or a lien thereon, in good faith, and for value. SOURCE: CC § 2913. NOTE: No 1970 Civil Code '§ 2914 -2919 existed. ---------COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.35LIENS IN GENERAL