Chapter 47

COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.47 LOAN OF MONEY 1CHAPTER 47 LOAN OF MONEY § 47101. Loan of Money . § 47102. Loan Repaid in Current Money . § 47103. Interest on Loan. § 47104. Interest, What. § 47105. Annual Rate. § 47106. Legal Rate of Interest. § 47107. Licenses for Money Lending. Books to be Kept b y Money Lender. § 47108. Exceptions. § 47101. Loan of Money. A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. A loan for mere u seis gov erned by Chapter 45, Loan for Use. SOURCE: CC § 1912. § 47102. Loan Repaid in Current Money. A borrower of money , unless there is an express contract to the contrary , must pay the amount due in such money as is current at the time when the l oan becomes due, whether such money is worth more or less than the actual money lent. SOURCE: CC § 1913. § 47103. Interest on Loan. Whenever a loan of money is made, it is presumed to be made upon interest, unless it is otherwise expressly stipu lated at the time in writing. SOURCE: CC § 1914. § 47104. Interest, What.

st on Loan. Whenever a loan of money is made, it is presumed to be made upon interest, unless it is otherwise expressly stipu lated at the time in writing. SOURCE: CC § 1914. § 47104. Interest, What. Interest is the com pensa tion allowed by law or fixed by the parties for the use, or forbear ance, or detention of money . SOURCE: CC § 1915. § 47105. Annual Rate. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.47 LOAN OF MONEY 2When a rate of int erest is pre scribed by a law or contract, without specifying the period of time by which such rate is to be calculated, it is to be deemed an annual rate. SOURCE: CC § 1916. § 47106. Legal Rate of Interest. The rate of inter est upon the loan or forbea rance of any money , goods or things in action, or on accounts after demand or judg ment rendered in any court of the territory , shall be six percent (6%) per annum but it shall be competent for the parties to any loan or forbearance of any money , goods or things in action to contract in writing for a rate of interest not exceeding the rates of interest spec ified in Title 14 of this Code. SOURCE: CC § 1916a added by P .L. 3 -44, (2/3/56).

y , goods or things in action to contract in writing for a rate of interest not exceeding the rates of interest spec ified in Title 14 of this Code. SOURCE: CC § 1916a added by P .L. 3 -44, (2/3/56). NOTE: Former Civil Code '1917 was repealed by P .L. 13 -187:14 because rates of interest are now governed by the Uniform Consum er Credit Code, Title 14 of this Code. CC § 1916a referred to '1917 of the Civil Code. § 47107. Licenses for Money Lending. Books to be Kept by Money Lender . (a) A license to lend mon ey may be gr anted only to a bona fide re sident of the Territory of Guam. W ritten applica tions for licenses must be submit - ted to the Director of Revenue & T axation, stating name, nationality , place of residence and of proposed business, age, previous occupations, o ther present occupations, the location and value of all real estate property registered in the name of the applicant, and his own personal cash capital to be used in the money lending business. The licensed moneylender here by is forbidden to act as an agen t for lending mon ey belong ing to another , directly or indi rectly . He may lend only his own money .

in the money lending business. The licensed moneylender here by is forbidden to act as an agen t for lending mon ey belong ing to another , directly or indi rectly . He may lend only his own money . (b) All costs for fees for administering oath, wit nessing loans or payments, and all other costs inciden tal to the making of a loan and the collec tionof interest and principal thereof, except for making out or record - ing a mortgage or title, shall be borne wholly by the money lender , except when otherwise ordered by a court in cases of court action for defaulted payments. (c) The moneylender must deli ver to the borrower at the time a loan is consummated, the full amount of the stipulated loan in cash, with out rebate, draw back, or other subterfuge. The discounting (advance pay ment) of interest is forbidden, except when the interest rate is ten percen t (10% per COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.47 LOAN OF MONEY 3year or less. Interest is to be paid when accrued and due, or (solely for the conve nience of the borrower) a reasonably short time before due. (d) Applicants for license to lend money must dem onstrate that they can speak, read, and write the English

d due, or (solely for the conve nience of the borrower) a reasonably short time before due. (d) Applicants for license to lend money must dem onstrate that they can speak, read, and write the English language clearly and that they possess sufficient educa tional qualifications to properly conduct the busi - ness they contemplate establishing. A statement under oath, that the applicant is the sole owner of the capital to be invested and used in the loan business, shall be required. This statement shall be filed with the Direc tor of Admin istration. (e) All persons licensed to conduct the busi ness of loaning money at interest, with or with out security will, at all times, be required to maintai n in legible form, and have available for authorized inspection, the following records: (1) A cash book with double columns, on the debit side of which all payments made by borrow ers on the principal and interest of loans shall be entered in separate col umns provided for this pur pose. Date of payment, and the name and place of residence of each payee shall be entered on the same line as the entry for amount paid.

ns shall be entered in separate col umns provided for this pur pose. Date of payment, and the name and place of residence of each payee shall be entered on the same line as the entry for amount paid. The credit side shall show the date, name, and residence of the borrower, and the amount of the loan. This cash book must be balanced at least once a month. (2) A ledger, or loan record, in which all loans made shall be recorded, giving each separate loan a full page and serial numbe r. Each account shall show at the top of the page the full name and place of residence of the borrower. On the debit side, a record of the loan and the conditions under which made shall be entered in brief form, giving date, amount, and period of loan; lot number or location of property mortgaged (if any); the name in which mortgaged property is regis - tered at the time of loan; and any special agreements made. On the credit side shall be entered separately all payments of both interest and principal made by the borrow er, giving dates and amounts. (3) A receipt in dup licate, in ink or typewriting, must be prepared for every payment made by bor rowers, and shall be signed by the lender or his authorized

the borrow er, giving dates and amounts. (3) A receipt in dup licate, in ink or typewriting, must be prepared for every payment made by bor rowers, and shall be signed by the lender or his authorized agent, and delivered at time of pay ment. The dupli cate of each receipt shall be retained by the lender . COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.47 LOAN OF MONEY 4(4) A print ed notice, large enough to attract attention, and reading both in the English and Chamorro languages, 'Be sure to get a receipt,' shall be displayed conspicu ously at the place of business of the lender. (f) During such periods as licenses to loan money a re in effect a representative of the government of Guam will be appointed by the Governor , whose duty it will be to inspect quarterly , or more frequently if neces sary, the records outlined in this section; ascertain their general conditions; report any de viations from the intent of this section; and make recommenda tions thereon. Report will be made in writing to the Governor . Violation of any provision of this section shall be punished as a misde - meanor .

from the intent of this section; and make recommenda tions thereon. Report will be made in writing to the Governor . Violation of any provision of this section shall be punished as a misde - meanor . SOURCE: CC § 1924, reference to Director of Financ echanged to Revenue & Taxation pursuant to P .L. 9 -239, effective August 13, 1968. § 47108. Exceptions. The provisions of this Chap ter shall not apply to licensed pawnbrokers, as provid ed for in Title L of the Government Code commencing with '50001, as amended. SOURCE: CC § 1924a. With the repeal of the Penal Code, regula tion of Pawnbrokers was placed in the Government Code by P .L. 13 -187:247. NOTE: The Government Code currently con tains regula tions for banks and other financial institutions. ----------COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH.47 LOAN OF MONEY