Guam § 139103 - Membership of Borrowers.

§ 139103. Membership of Borrowers.

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11 GCAFINANCE & TAXATION

Any association may (but shall not be required to) provide in its by-

laws that every person holding a certificate of membership as a borrower

from such association shall be a member thereof, and in the case of any

association having by-laws containing such provision every person

holding a certificate of membership as a borrower from such association

shall be a member thereof. Any applicant for a loan from any association

having by-laws containing such provision, who is not a member of such

association, may be permitted to become a member without purchasing

or subscribing for shares of such association, upon application made to

the association before or at the time of the filing of his loan application.

A certificate of membership shall be issued to every such applicant

accepted by such association as a member and at all meetings of the

members of such association (or if persons other than members of such

association shall also be entitled to vote), then at all meetings of the

members of such association and of such other persons as shall be

entitled to vote), and on all matters of the association requiring the vote

of shareholders, stockholders, or other person entitled to vote, borrowing

members, in person or by proxy, shall be entitled to cast one vote each;

provided, however, that in the case of any association having by-laws

containing the provision above referred to in this section where a loan is

made to, or property securing a loan is owned by, two or more persons,

each of such persons shall be a member, but such persons in the

aggregate shall hold one certificate and have one vote, and such vote

shall be cast by the majority of such persons present in person or by

proxy at such meeting, or if only one of such persons is present in person

or by proxy then by that one. Any person who shall be a member of an

association solely by reason of holding a borrower’s membership shall

cease to be a member upon (a) full repayment of the loan including all

advances or (b) the sale, exchange, transfer or other disposition of such

loan by the association or (c) transfer of the property securing the loan to

another person or persons, but from and after such transfer the person or

persons acquiring such property shall become a member or members in

lieu of the person or persons making such transfer upon being issued a

certificate of membership as a borrower; provided, however, that the

association, until it has notice of such transfer, shall be entitled for all

purposes to treat the transferor as a member of the association. Person, as

used in this section, includes person, firm, copartnership, association and

corporation.