Guam § 130107 - Security for Loans.

§ 130107. Security for Loans.

For each loan made by a savings and loan association a note or

notes or other obligation or obligations expressing a rate of interest must

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11 GCA FINANCE & TAXATION

CH. 130 INVESTMENTS, LOANS AND BORROWING

be executed by the borrower and must be secured, except as otherwise

permitted under Section 130120 or 130121, (a) by a first mortgage or

first trust deed upon fee title to real property or upon a leasehold interest

in real property under a lease having a period of not less than fifty years

to run from the date of the loan, (b) by the pledge of shares or investment

certificates of such association and/or (c) by the pledge of bonds or other

collateral. Two or more mortgages or trust deeds, all owned or purchased

by the same association, shall collectively be deemed a first mortgage or

a first trust deed, as the case may be, for all the purposes of this act, if

they create successive liens or charges upon the same real property or

leasehold interest and if one thereof is in fact a first mortgage or first

trust deed. In lieu of making two or more separate loans, each secured by

mortgage, trust deed or pledge of one or more properties or leasehold

interests or securities in amounts permitted by this act, an association

may make a single loan secured by all such properties, by all such

leasehold interest and/or by all such securities, if the principal amount of

such single loan does not exceed the aggregate of the principal amounts

which would be permitted for such separate loans. Notwithstanding

anything to the contrary in this act, any security, whether or not the same

be a first encumbrance or charge, on property, either improved or

unimproved and either real or personal, may be taken at any time and

without limit as additional security for any loan held by such association.