Guam § 130102 - Investments Generally.

§ 130102. Investments Generally.

An association may invest in buy and sell the following:

(1) Real property used or to be used primarily as the principal

office or branch of such association. provided, that no association

shall invest in such real property more than one-half (1/2) of the

sum of its aggregate paid-up non-withdrawable capital. federal

insurance reserve, loan reserve. and any surplus and reserve which

is not subject to distribution to the shareholders or stockholders

except upon dissolution or liquidation;

(2) Furniture. fixtures. furnishings. equipment and leasehold

improvements necessary or proper for the business of such

association, or for use in connection with properties owned by, or

securing loans of such association; provided, that no association

shall invest in furniture, fixtures, furnishings, equipment and

leasehold improvements for its offices, more than twenty percent

(20%) (or, if it has no real property used or to be used primarily as

its principal office or branch, thirty percent (30%)) of the sum of its

aggregate paid-up non-withdrawable capital, federal insurance

reserve, loan reserve, and any surplus and reserve which is not

subject to distribution to the shareholders or stockholders except

upon dissolution or liquidation;

(3) United States government bonds and treasury certificates,

or any bonds, debentures, notes or other obligations guaranteed by

the United States of America;

(4) Bonds. debentures and notes issued by any federal home

loan bank, or other similar federal agency, or consolidated federal

home loan hank bonds, debentures or notes;

(5) Bonds of this territory;

(6) Bonds, other securities and banker’s acceptances which are

legal as investments for or purchases by savings banks in this

territory;

(7) Bonds issued by any railroad corporation or any public

utility corporation, excluding street railway corporations,

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substantially all of the properties of which are located in the United

States of America; provided, the purchase of all bonds pursuant to

the sole authority of this subdivision (7) shall be first approved by

the Commissioner;

(8) Stock issued by any federal home loan bank or other similar

federal agency of which such association may be eligible to be a

member;

(9) Bonds, notes, debentures or other obligations of national

mortgage associations or other similar credit institutions now or

hereafter organized under Title III of the National Housing Act;

provided, the purchase of all bonds, notes, debentures or other

obligations pursuant to the sole authority of this subdivision (9)

shall be first approved by the Commissioner; or

(10) Stock, obligations, or other securities of any corporations

organized under the laws of Guam, if the entire capital stock of such

corporation is available for purchase only by domestic associations,

but no association may make any investment under this subdivision

(10) if its aggregate outstanding investment under this subdivision

(10), ‘determined as prescribed by the Commissioner, would

thereupon exceed one percent (1%) of its assets; provided, further,

that such investment is one that would be permitted to such an

association chartered by the Federal government.

Provided, that, except with the prior consent of the

Commissioner, no association at any one time shall have invested

pursuant to subdivisions (6), (7) and (9) of this section, an aggregate

amount in excess of ten percent (10%) of the total assets of such

association.

Provided, further, that the percentage limitations specified in

subdivisions (1) and (2) of this section may be exceeded if the

investment in excess of such limitations is approved by two-thirds

(2/3) of the directors, and is approved in writing by the

Commissioner.

Associations may make deposits with any bank and such

deposits shall not be construed as loans within the meaning of this

Act.

(11) Notwithstanding any provision of this Title, an association

may invest its funds in any loan or purchase which is permitted to a

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federal savings and loan association doing business in this territory

(whether such, association is doing such business or not).