Guam § 130109 - Loans Terms.

§ 130109. Loans Terms.

For the purpose of this act, an amortized loan shall be one which

provides for payments to be made on the principal in installments to be

paid at regular intervals at least semiannually and to commence not later

than one year after the date of the loan. Such installments may include

interest and either as to principal alone or as to combined principal and

interest shall be at least of a sufficient amount so that the smallest

installment provided in the note evidencing said loan (other, than the last

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installment) if continued at such regular intervals would result in paying

the entire principal in not more than 20 years (or, in the case of loans

pursuant to Section 130120 or 130121, within 25 years) from the due

date of the first installment, whether or not such loan be written for a

shorter period. Such loans may provide for payment of interest or

principal or both, in addition to such regular installments and in the event

such regular installments are not sufficient to pay the entire principal

within the term thereof, such loans must provide that the entire amount

unpaid come due and payable within not more than 6 months after the

due date of the last regular installment; provided, however, that the

commissioner may by rules permit, and prescribe a longer maximum

term than as herein provided in the case of amortized loans upon

particular classes of security which classes he shall have power to

prescribe and define.

Loans may be made by an association which may or may not

provide for payments on account of the principal thereof during an initial

period not to exceed three years. If any loan does not provide for the

payment, commencing not later than one year after the date thereof, of

installments either of principal alone or of combined principal and

interest at a rate at least equal to the rate hereinabove provided for an

amortized loan, the same shall not be an amortized loan for the purpose

of Section 130111 of this act; but for the purpose of Section 130115 of

this act, any loan held by an association may be classified as an

amortized loan during any period within which payments are being

made, or within which the note or obligation representing such loan

provides for payments to be made, of installments either of principal

alone or combined principal and interest thereof at a rate not less than

that hereinabove provided for an amortized loan.

The provisions of this section are subject to the provisions of

Section 130120 and of Section 130121.