Guam § 103104 - Powers of Board and Commissioner.

§ 103104. Powers of Board and Commissioner.

(a) In addition to other powers conferred by this Title, the

Board shall have the power to:

(1) Regulate its own procedures and practices in

accordance with the Administrative Adjudication Act.

(2) Implement by regulation not inconsistent with law,

any provision of this Title, and to define any term not

defined in this Title as may be reasonably necessary or

appropriate for the administration of this Title and other

laws of Guam relating to banking and insurance. Such

regulations shall be promulgated, amended, or repealed in

accordance with the Administrative Adjudication Act.

(3) Relative to banking, the Board may:

(A) Restrict the withdrawal of deposits from all or

one or more territorial banks where the Board finds

that extraordinary circumstances make such restrictions

necessary for the proper protection of depositors in the

affected institution;

(B) Authorize a territorial bank until the close of

the next regular session of I Liheslatura to participate

in a public agency hereafter created under the laws of

Guam or of the United States, the purpose of which is

to afford advantages or safeguards to banks or to

depositors and to comply with all requirements and

conditions imposed upon such participants; and to

engage in any banking activity in which banks subject

to the jurisdiction of the Federal government may

hereafter be authorized by Federal legislation to

engage;

(C) Order the holder of shares in a territorial bank

to refrain from voting said shares on any matter if it

finds that such order is necessary to protect the

institution against reckless, incompetent or careless

management, safeguard the funds of depositors, or

prevent the willful violation of this Title or of any

lawful rule or order issued thereunder. In such a case,

the shares of such a holder shall not be counted in

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determining the existence of a quorum or a percentage

of the outstanding shares necessary to take any

corporate action; or

(D) Order any person to cease violating a

provision of this Title or a lawful regulation issued

thereunder or to cease engaging in any unsound

banking practice.

(4) Relative to insurance, the Board may:

(A) Enter into contracts for services with a

Certified Financial Examiner in good standing with the

Society of Financial Examiners and with an Actuary in

good standing with the American Academy of

Actuaries in the examination of insurance companies;

(B) Institute such actions or other lawful

proceedings as it may deem necessary for the

enforcement of provisions of this Title and other laws

regulating insurance in Guam or any order or action

made or taken by the Commissioner in pursuance of

law; or

(C) If finding reason to believe that any person

has violated any provisions of this Title and other laws

regulating insurance in Guam, for which criminal

prosecution is provided and in the opinion of the

Commissioner would be in order, such information

relative thereto shall be transmitted to the Attorney

General.

(5) Affirm, reverse or stay the enforcement of any

order or ruling of the Commissioner.

(6) Establish such rules and regulations in accordance

with the Administrative Adjudication Act as may be

necessary for the operation and management of banks.

(b) The Board may remove a director, trustee, officer or

employee of a territorial bank who becomes ineligible to hold his

or her position or, who after receipt of an order to cease under

the preceding Subsection, violates this Title or a lawful

regulation or order issued thereunder or who is dishonest or who

is reckless or grossly incompetent in the conduct of banking

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business. It shall be a criminal offense against this Title for any

such person, after receipt of a removal order, to perform any

duty or exercise any power of any territorial bank for a period of

three (3) years. A removal order shall specify the grounds

thereof and a copy of the order shall be sent to the bank

concerned. The Board may recommend removal of a director,

trustee, officer or employee of a national or state bank.

(c) Notice and hearing shall be provided in advance of any

action taken by the Board. In cases involving extraordinary

circumstances requiring immediate action, the Board may take

such action but shall promptly afford a subsequent hearing upon

application to rescind the action taken.

(d) Members of the Board shall have access to any record of

the Division, with reference to banking and insurance matters.

(e) The Commissioner and the Board shall have the power

to

(1) subpoena witnesses,

(2) compel their attendance,

(3) require the production of evidence,

(4) administer an oath and

(5) examine any person under oath in connection with

any subject relating to a duty imposed upon or a power

vested in the Commissioner or the Board.

These powers shall be enforced by the Superior Court of Guam.

An individual who claims privilege against self-incrimination

may nevertheless be compelled to testify, but he or she shall not

be prosecuted or subjected to a penalty or forfeiture on account

of anything concerning which he or she has testified under such

compulsion, except for perjury committed in his or her

testimony. Removal from an office or employment with a

territorial bank or insurance company is not the imposition of a

penalty or forfeiture.

(f) The Board may, on petition of any interested person and

after hearing, issue a declaratory order with respect to the

applicability to any person, property or state of facts of this Title

or a rule issued by the Board. The order shall bind the Board

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and all parties to proceeding on the state of facts alleged unless it

is modified or reversed by a court having jurisdiction. A

declaratory order may be reviewed and enforced in the same

manner as other orders of the Board, but the refusal to issue a

declaratory order shall not be reviewable.

(g) No person shall be subjected to any civil or criminal

liability for any act or failure to act made in good faith and in

reliance upon an existing order, regulation or definition of the

Board notwithstanding a subsequent decision by a court

invalidating the order, regulation or definition.

(h) The Board shall continuously review the provisions of

this Title and other laws regulating banking and insurance in

Guam and may, from time to time, make recommendations for

changes therein to I Maga=lahi and I Liheslatura in the

Commissioner=s Annual Report.

2015 NOTE: Subsection designations in (a)(3) and (4) were altered to

adhere to the Compiler’s alpha-numeric scheme pursuant to 1 GCA §

1606.