Guam § 124102 - Limitation on Withdrawals.

§ 124102. Limitation on Withdrawals.

The term matured withdrawal claims, as used in this chapter, shall

include each and all of the following, to wit, (1) the value of all shares or

investment certificates or parts thereof, in respect of which valid notices

of intention to withdraw shall be on file, matured and unpaid, including

notices of intention to withdraw by defaulting shareholders pursuant to

Section 116105 of this act, as well as notices of withdrawal generally

pursuant to Section 124101 of this act; and (2) the value of all shares

which shall have matured pursuant to Section 116103 of this act and

which shall be unpaid.

Regardless of whether or not an association is on notice, its

obligations to pay matured withdrawal claims and the right of

shareholders and certificate holders to receive payment of matured

withdrawal claims, shall be secondary and subsequent to the right of such

association to pay, and to provide a reasonable fund for the payment of,

the following: Taxes, assessments, insurance, repairs, alterations and

other sums necessary to protect and preserve or to furnish or equip its

properties and its interest in properties (including those on the security of

which it holds loans); principal and interest on borrowing by such

association; interest on investment certificate. and dividends on shares;

rent, compensation of officers, agents, salesmen and other employees,

and other usual and ordinary operating expenses of such association; and

commitments on it incomplete loans or investments; provided, however,

that an association on notice shall not pay any dividends on its stock or

distribute any profits to its stockholders or make any loans or

investments, except loans or investments pursuant to its obligations

incurred before it became an association on notice and except loans

expressly permitted by Section 130101 of this act; provided further, that

an association on notice may with the prior consent of the commissioner,

and an association not on notice may without the necessity of obtaining

the consent of the commissioner, in lieu of paying matured withdrawal

claims, make or purchase loans or investments not exceeding the

principal amount of moneys borrowed by such association from a federal

home loan bank, or other similar federal agency, and not theretofore

repaid; and provided further, that an association which is on notice may

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with the prior consent of the commissioner, and an association which is

not on notice may without the necessity of obtaining the consent of the

commissioner, in lieu of paying matured withdrawal claims, invest in

stock issued by any federal home loan bank or other similar federal

agency of which such association may be eligible to be a member.

Moreover, regardless of whether or not an association is on notice, its

obligation to pay matured withdrawal claims, and the right of

shareholders and certificate holders to receive payment of matured

withdrawal claims, shall be limited to payments from its cash on hand or

in bank, proceeds from sale of investments and loans and other cash

receipts of such association; and shall be further limited to payment

pursuant to the subsequent provisions of this section. The cash,

proceeds and other receipts aforesaid which shall remain after deducting,

therefrom all payments, reserves, loans and investments above

mentioned in this paragraph, are hereafter in this Section 124102 called

the available funds.

The term unrestricted funds, as hereafter used in this Section

124102, is hereby defined as that part of the available funds which may

be used at the option of the association to pay any or all withdrawals

without requiring notice of intention to withdraw or before the maturity

of a notice of intention to withdraw and regardless of the non-payment of

any or all matured withdrawal claims, or for the purpose of making loans

or investments, or for any other purpose not prohibited by law.

If there are no matured withdrawal claims (excepting claims for the

payment of which funds have been set aside by the association) then all

of the available funds shall be unrestricted funds.

If there are matured withdrawal claims (for the payment of any of

which funds have not been set aside by the association), then, whether or

not the association is on notice, not to exceed one-third of the available

funds shall be unrestricted funds, and at least one-third of the available

funds shall be applied to the payment of matured withdrawals. The

remaining one-third shall be restricted or unrestricted funds at, the option

of the association; provided, however, that no portion of it may be used

for the payment of unmatured withdrawal claims so long as any matured

withdrawal claims remain unpaid.

Notwithstanding anything to the contrary in this act, however,

withdrawals may be made at any time without notice from pledged

shares and investment certificates, whether or not the association is on

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notice; provided, the full amounts of such withdrawals shall be used to

pay the indebtedness for which such shares or investment certificates are

pledged, or any part thereof.

No association shall make any contract waiving in any manner any

of the provisions of this section and, if any such contract shall be so

made, such contract shall be void.