Guam § 160308 - Liquidation by Commissioner.

§ 160308. Liquidation by Commissioner.

(a) In liquidating a Trust Company, the Commissioner may exercise

any power thereof, but the Commissioner shall not, without the approval

of the U.S. District Court of Guam:

(1) sell any asset of the Trust Company having a value in

excess of One Thousand Dollars ($1,000.00);

(2) compromise or release any claim, if the amount of the claim

exceeds Five Hundred Dollars ($500.00), exclusive of interest; or

(3) make any payment on any claim, other than a claim upon an

obligation incurred by the Commissioner, before preparing and

filing a schedule of the Commissioner’s determinations in

accordance with this Act.

(b) Within six (6) months of the commencement of liquidation, the

Commissioner may by the Commissioner’s election terminate any

executory contract for services or advertising to which the Trust

Company is a party, or any obligation of the Trust Company as a lessee.

A lessor who receives sixty (60) days notice of the Commissioner’=s

election to terminate the lease shall have no claim for rent other than rent

accrued to the date of termination, nor for damages for such termination.

(c) As soon after the commencement of liquidation as is practicable,

the Commissioner shall take the necessary steps to terminate all fiduciary

positions held by the Trust Company, and take such action as may be

necessary to surrender all property held by the Trust Company as a

fiduciary and to settle its fiduciary accounts.

(d) As soon after the commencement of liquidation as practicable,

the Commissioner shall send notice of the liquidation to each known

trustor and creditor. The notice shall also be published in a newspaper of

general circulation on Guam once a week for three (3) successive weeks.

The Commissioner shall send with the notice a statement of the amount

shown on the books of the Trust Company to be the claim of the trustor

or creditor. The notice shall demand that if the amount claimed differs

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from that stated on the notice to be due, be filed with the Commissioner

before a specified date not earlier than sixty (60) days thereafter in

accordance with the procedure prescribed in the notice.

(e) Within six (6) months after the last day specified in the notice

for the filing of claims or such longer period as may be allowed by the

U.S. District Court of Guam in which notice of possession has been filed,

the Commissioner shall:

(1) reject any claim if the Commissioner doubts the validity

thereof;

(2) determine the amount, if any, owing to each known Trustor

or creditor;

(3) prepare a schedule of the Commissioner’s determination for

filing in the U.S. District Court of Guam in which notice of

possession was filed; and

(4) notify each person whose claim has not been allowed in

full, and publish once a week for three (3) successive weeks a notice

of the time when and the place where the schedule of determinations

will be available for inspection and the date, not sooner than thirty

(30) days thereafter, when the Commissioner will file the

Commissioner’s schedule in Court.

(f) Within thirty (30) days after the filing of the Commissioner’=s

schedule, any trustor or creditor or stockholder may file an objection to

any determination made. Any objections so filed shall be heard and

determined by the Court, upon such notice to the Commissioner and

interested claimants as the Court may prescribe. If the objection is

sustained, the Court shall direct an appropriate modification of the

schedule. After filing the Commissioner’s schedule, the Commissioner

may, from time to time, make partial distribution to the holders of claims

which are undisputed or have been allowed by the Court, if a proper

reserve is established for the payment of disputed claims. As soon as is

practicable after the determination of all objections, the Commissioner

shall make final distribution.

(g) The following claims shall have priority:

(1) obligations incurred by the Commissioner;

(2) wages and salaries of officers and employees earned during

the four (4) month period preceding the Commissioner=s possession

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in an amount not exceeding Three Thousand Dollars ($3,000.00) for

any one (1) person; and

(3) fees and assessments due to the government of Guam.

(h) After the payment of all other claims which were timely filed,

the Commissioner shall pay claims otherwise proper which were not

filed within the time prescribed. If the sum available for any class is

insufficient to provide payment in full, such sum shall be distributed to

the claimants in the class pro rata.

(i) Any assets remaining after all claims have been paid shall be

distributed to the stockholders in accordance with their respective

interests.

(j) Unclaimed funds remaining after completion of the liquidation

shall be retained for ten (10) years by the Commissioner, unless sooner

claimed by the owner. At the expiration of such period, the remaining

sum shall be transferred to the Treasurer of Guam as abandoned funds.

(k) When the assets have been distributed in accordance with this

Act, the Commissioner shall file an account with the U.S. District Court

of Guam. Upon approval thereof the Commissioner shall be relieved of

liability in connection with the liquidation and the charter of the Trust

Company shall be canceled.