Guam § 113108 - Investment Certificate and Withdrawable Share Reserve.

§ 113108. Investment Certificate and Withdrawable Share Reserve.

Each association’s investment certificate and withdrawable share

reserve shall consist of any one, or the sum of any two or more, of the

following: Paid-up non-withdrawable capital, surplus, undivided profits,

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loan reserve and federal insurance reserve, and also such other reserves

as the commissioner may prescribe.

The specified amount of the investment certificate and withdrawable

share reserve for each association shall be the sum of the following:

(1) Five percent (5%) of the aggregate value of its outstanding

investment certificates;

(2) Five percent (5%) of the aggregate value of its outstanding

shares;

(3) Fifty Thousand Dollars ($50,000) in respect of each branch

maintained by it.

No association shall pay any dividends to stockholders or distribute

any profits to stockholders if its investment certificate and withdrawable

share reserve is less than, or by such payment or distribution would be

reduced below, said specified amount.

No association shall (a) issue investment certificates except in lieu

of investment certificates theretofore issued, (b) receive additional funds

upon investment certificates other than installment certificates (but this

prohibition shall not prevent crediting on investment certificates, interest

earned thereof), (c) issue withdrawable shares except in lieu of

withdrawable shares theretofore issued or in connection with loans, or

(d) receive additional funds on withdrawable shares other than

installment shares (but this prohibition shall not prevent crediting on

withdrawable shares, dividends or earnings thereon if the payment of

such dividends is not otherwise prohibited under this section), if at the

time of such proposed issue or receipt its investment certificate and

withdrawable share reserve shall be less than said specified amount.

For the purposes of this section, accrued interest on investment

certificates and accrued dividends on shares, at the rate or rates of return

determined for such investment certificates or shares (or if such rate or

rates have not been determined for any period or part of a period, at the

rate or rates of return most recently determined) shall be included in

computing the value of outstanding shares and investment certificates,

and shall be deducted in computing the amount of investment certificate

and withdrawable share reserve.

The provisions of this section shall not be applicable to any

association unless it shall issue either shares or investment certificates.

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