Guam § 127113 - Adverse Claims.

§ 127113. Adverse Claims.

(a) Notice to any association of an adverse claim (the person

making such adverse claim being hereafter in this section called adverse

claimant) to shares or investment certificates standing on its books the

credit of, or to personal property held for the account of, any person may

be disregarded until and unless the adverse claimant shall

(1) procure and serve upon the association at the office at

which the account is carried or the property held a restraining order,

injunction or other appropriate order against the association from a

court of competent jurisdiction in an action in which the adverse

claimant and all persons in whose name such account stands or for

whose account such property is held are parties; or

(2) execute and deliver to the association at the office at which

the account is carried or the property held a bond in form and with

surety acceptable to it and in an amount fixed by the association, but

which amount in no event need be more than twice the value of the

shares or investment certificates or more than twice the market

value of the property against which the adverse claim is made,

indemnifying it and also all persons in whose names such account

stands or for whose account such property is held, against all

liability, loss, damage, costs and expenses arising out of the refusal

to permit withdrawal from such account or to pay dividends or

interest thereon or to deliver such property.

(b) Unless such restraining order, injunction or other appropriate

order is obtained, or such bond is given, the association, notwithstanding

such notice, may honor notices of intention to withdraw and may pay

withdrawals, dividends and interest to the person or persons to whose

credit the account stands or may deliver such property to or upon the

order of the person for whose account such property is, without any

liability on the part of the association.

(c) If an adverse claimant delivers to the association at the office at

which the account is carried or the property held his affidavit stating that

COL4122017

11 GCA FINANCE & TAXATION

of his own knowledge the person to whose credit the account stands or

for whose account the property is held is a fiduciary for the adverse

claimant and that such fiduciary is about to misappropriate the account or

the property and stating the facts upon which the claim of a fiduciary

relationship is based, the association may refuse to pay withdrawals,

dividends or interest on the account or may refuse to deliver such

property until the adverse claim is finally adjudicated or released,

without liability on its part and without liability for the sufficiency or

truth of the facts alleged in the affidavit.

(d) The provisions of this section shall be applicable even though

the name of the person appearing on the association’s books to whose

credit the account stands or for whose account the property is held is

modified by a qualifying or descriptive term such as agent, trustee or

other word or phrase indicating that such person may not be the owner in

his own right of the account or property.