Guam § 12104 - Acquiring and Disposing of Bonds, etc.

§ 12104. Acquiring and Disposing of Bonds, etc.

Notwithstanding any rule or common law or any provision of any

general or special law or any provision in their respective charters,

agreements of association, articles of organization or trust indentures:

(a) Any person, including all domestic corporations organized for

the purpose of carrying on business within this territory, and further

including without implied limitation public utility companies and

insurance companies and foreign corporations licensed to do business

within this territory and all financial institutions as defined herein, and

all trusts, are hereby authorized to acquire, purchase, hold, sell, assign,

transfer, mortgage, pledge or otherwise dispose of any bonds,

securities, or other evidences of indebtedness created by, or the shares

of the capital stock of the corporation, and while owners of said stock

to exercise all the rights, powers and privileges of ownership,

including the right to vote thereon, all without the approval of any

regulatory authority of the territory except as otherwise provided in

this Chapter; provided, however, that a financial institution which does

not become a member of the corporation shall not be permitted to

acquire any shares of the capital stock of the corporation.

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(b) All financial institutions are hereby authorized to become

members of the corporation and to make loans to the corporation as

provided herein.

(c) Each financial institution which becomes a member of the

corporation is hereby authorized to acquire, purchase, hold, sell,

assign, transfer, mortgage, pledge, or otherwise dispose of any bonds,

securities, or other evidences of indebtedness created by, or the shares

of the capital stock of the corporation, and while owners of said stock

to exercise all the rights, powers and privileges of ownership,

including the right to vote thereon, all without the approval of any

regulatory authority of territory; provided, that the amount of the

capital stock of the corporation which may be acquired by any member

pursuant to the authority granted herein shall not exceed ten percent

(10%) of the loan limit of such member.

The amount of capital stock of the corporation which any member is

authorized to acquire pursuant to the authority granted herein is in addition

to the amount of capital stock in corporations which such member may

otherwise be authorized to acquire.