Guam § 106209 - Determination on Application for Charter.

§ 106209. Determination on Application for Charter.

(a) When an application for a charter has been filed with the Commissioner he shall make or cause to

be made a careful investigation and examination relative to the following:

(1) The character, reputation, and financial standing of the organizers or incorporators and their

motives in seeking to organize the proposed territorial bank.

(2) The character, financial responsibility, banking or trust experience, and business

qualifications of those proposed as officers of the bank.

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(3) The character, financial responsibility, business experiences and standing in the community

of the prospective stockholders and of those proposed as directors of the bank.

(4) The need in the municipality where the bank would be located for banking or banking and

trust facilities, or additional banking or banking and trust facilities, as the case may be, giving particular

consideration to the adequacy of existing banking and trust facilities therein.

(5) The ability of Guam to support the proposed bank, giving consideration to

(A) the competition offered by existing banks and other financial institutions;

(B) the banking history of Guam;

(C) the opportunities for profitable employment of bank funds as indicated by the average

demand for credit, the number of potential depositors, the volume of bank transactions, and the

business and industries of the territory, with particular regard to their stability, diversification and

size; and

(D) if the bank is to exercise trust powers, the opportunities for profitable employment of

fiduciary services.

(6) Such other facts and circumstances bearing on the proposed bank and its relation to the

territory as in the opinion of the Commissioner or the Board may be relevant.

(b) The Commissioner shall submit a report of the results of his investigation to the Board, together

with all papers, correspondence and information in his possession relating to the application for a charter,

and shall include therewith his recommendation in the matter.

(c) Within 90 days after the filing of the application, the Board shall consider the Commissioner’s

findings and recommendations and all other relevant information available to them, and the Board shall in

its discretion approve or disapprove the application, but it shall not approve the application until it has

ascertained to its satisfaction:

(1) That the public need and advantage will be promoted by the establishment of the proposed

bank.

(2) That conditions in Guam and in the municipality in which the bank would transact business

afford reasonable promise of successful operation.

(3) That the bank is being formed for no other purpose than the legitimate objects contemplated

by this Title.

(4) That the proposed capital and surplus are not less than the required minimum and are adequate

in the light of current and prospective banking conditions.

(5) That those proposed as officers and directors have sufficient experience, ability and standing

to afford reasonable promise of successful operation.

(6) That the name of the proposed bank does not resemble, so closely as to be likely to cause

confusion, the name of any other bank transacting business in Guam or which previously had

transacted business in Guam during the last 20 years; and

(7) That the applicants have complied with all applicable provisions of this Title.

(d) If the Board shall approve the application the Commissioner shall grant a charter by indorsing his

approval on all copies thereof, retaining one copy in the department’s files, and returning one copy to the

incorporators within 20 days of the action of the Board approving the application.

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(e) If the Board shall disapprove the application the Commissioner shall mail notice of such

disapproval to the incorporators within 20 days after the action of the Board disapproving the application.