Guam § 12105 - Membership. Loans to the Corporation.

§ 12105. Membership. Loans to the Corporation.

Any financial institution may request membership in the corporation

by making application to the board of directors on such form and in such

manner as said board of directors may require, and membership shall

become effective upon acceptance of such application by said board.

Each member of the corporation shall make loans to the corporation as

and when called upon by it to do so on such terms and other conditions as

shall be approved from time to time by the board of directors, subject to the

following conditions:

(a) All loan limits shall be established at the thousand dollar

amount nearest to the amount computed in accordance with the

provisions of this section.

(b) No loan to the corporation shall be made if immediately

thereafter the total amount of the obligations of the corporation would

exceed ten (10) times the amount then paid in on the outstanding

capital stock of the corporation.

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(c) The total amount outstanding on loans to the corporation made

by any member at any one time, when added to the amount of the

investment in the capital stock of the corporation then held by such

member, shall not exceed:

(1) Twenty percent (20%) of the total amount then

outstanding on loans to the corporation by all members, including

in said total amount outstanding amounts validly called for loan

but not yet loaned.

(2) The following limit to be determined as of the time such

member becomes a member on the basis of the audited balance

sheet of such member at the close of its fiscal year immediately

preceding its application for membership, or in the case of an

insurance company, its last annual statement to the territorial

Commissioner of Banking and Insurance; two and one-half

percent (22%) of the capital and surplus of commercial banks

and trust companies; one-half of one percent (0.5%) of the total

outstanding loans made by savings and loan associations, and

building and loan associations; two and one-half percent (22%)

of the capital and unassigned surplus of stock insurance

companies, except fire insurance companies; two and one-half

percent (22%) of the unassigned surplus of mutual insurance

companies, except fire insurance companies; one-tenth of one

percent (0.1%) of the assets of fire insurance companies; and such

limits as may be approved by the board of directors of the

corporation for other financial institutions.

(d) Subject to Paragraph (1) of subsection (c) of this section, each

call made by the corporation shall be prorated among the members of

the corporation in substantially the same proportion that the adjusted

loan limit of each member bears to the aggregate of the adjusted loan

limits of all members. The adjusted loan limit of a member shall be the

amount of such member's loan limit, reduced by the balance of

outstanding loans made by such member to the corporation and the

investment in capital stock of the corporation held by such member at

the time of such call.

(e) All loans to the corporation by members shall be evidenced by

bonds, debentures, notes or other evidences of indebtedness of the

corporation, which shall be freely transferable at all times, and which

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shall bear interest at a rate of not less than one-quarter of one percent

(0.25%) in excess of the rate of interest determined by the board of

directors to be the prime rate prevailing at the date of issuance thereof

on unsecured commercial loans.