Guam § 160302 - Investments; General Requirements.

§ 160302. Investments; General Requirements.

(a) Every Trust Company:

(1) shall keep all trust funds and investments separate from the

assets of the Company (These funds shall not be mingled with the

securities and investments of any other trust or of the corporation,

and all investments made by the Company as a fiduciary must be

designated so that the trust or estate to which the investments belong

may be clearly identified.);

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(2) holding trust funds for more than twenty-four (24) hours,

awaiting investment or distribution, must deposit or leave on deposit

such funds with a local financial institution (Such funds must not be

deposited or left with the Trust Company or with an affiliate

corporation or association, unless that affiliate corporation or

association first pledges, as security for the deposit, securities

eligible for investment by local financial institutions which have a

market value equal to that of the deposited funds. No security is

required with respect to any portion of such deposits which is

insured under the provisions of any law of the United States.);

(3) acting in any capacity under a court trust or private trust,

unless the instrument creating the trust provides otherwise, may

cause any securities held by it in its representative capacity to be

registered in the name of a nominee or nominees of the Company;

and

(4) when acting as depositary or custodian for the personal

representative of a court trust or private trust, unless the instrument

creating the trust provides otherwise, may with the consent of the

personal representative of the trust, cause any securities held by it to

be registered in the name of a nominee or nominees of the

Company.

(b) Every Trust Company is liable for any loss occasioned by the

acts of its nominees with respect to securities registered under this

Section.

(c) No corporation or the registrar or transfer agent of the

corporation is liable for registering or causing to be registered on the

books of the corporation any securities in the name of any nominee of a

Trust Company, or for transferring or causing to be transferred on the

books of the corporation any securities registered by the corporation in

the name of any nominee of a Trust Company, when the transfer is made

on the authorization of the nominee.

(d) Except as provided in Subsection (e), a Trust Company=s

investments of invested capital and earnings, must:

(1) be U.S. governmental obligations or Federally insured

deposits; or

(2) be investment grade securities and mature within three (3)

years after acquisition. The aggregate market value of all

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investments must equal or exceed sixty percent (60%) of the

Company=s current capital, surplus and undivided profits, or sixty

percent (60%) of the Company=s capital and surplus when it was

organized, whichever is greater.

(e) A Trust Company may purchase or rent land, facilities and

equipment for use in the daily activities of the company.

2017 NOTE: Subsection/subitem designations altered pursuant to the authority of

1 GCA § 1606.