Guam § 47107 - Licenses for Money Lending. Books to be Kept by Money

§ 47107. Licenses for Money Lending. Books to be Kept by Money

Lender.

(a) A license to lend money may be granted only to a bona fide resident

of the Territory of Guam. Written applications for licenses must be submit-

ted to the Director of Revenue & Taxation, stating name, nationality, place

of residence and of proposed business, age, previous occupations, other

present occupations, the location and value of all real estate property

registered in the name of the applicant, and his own personal cash capital to

be used in the money lending business. The licensed moneylender hereby is

forbidden to act as an agent for lending money belonging to another,

directly or indirectly. He may lend only his own money.

(b) All costs for fees for administering oath, witnessing loans or

payments, and all other costs incidental to the making of a loan and the

collection of interest and principal thereof, except for making out or record-

ing a mortgage or title, shall be borne wholly by the moneylender, except

when otherwise ordered by a court in cases of court action for defaulted

payments.

(c) The moneylender must deliver to the borrower at the time a loan is

consummated, the full amount of the stipulated loan in cash, without rebate,

draw back, or other subterfuge. The discounting (advance payment) of

interest is forbidden, except when the interest rate is ten percent (10% per

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year or less. Interest is to be paid when accrued and due, or (solely for the

convenience of the borrower) a reasonably short time before due.

(d) Applicants for license to lend money must demonstrate that they

can speak, read, and write the English language clearly and that they

possess sufficient educational qualifications to properly conduct the busi-

ness they contemplate establishing. A statement under oath, that the

applicant is the sole owner of the capital to be invested and used in the loan

business, shall be required. This statement shall be filed with the Director of

Administration.

(e) All persons licensed to conduct the business of loaning money at

interest, with or without security will, at all times, be required to maintain in

legible form, and have available for authorized inspection, the following

records:

(1) A cash book with double columns, on the debit side of which

all payments made by borrowers on the principal and interest of loans

shall be entered in separate columns provided for this purpose. Date of

payment, and the name and place of residence of each payee shall be

entered on the same line as the entry for amount paid. The credit side

shall show the date, name, and residence of the borrower, and the

amount of the loan. This cash book must be balanced at least once a

month.

(2) A ledger, or loan record, in which all loans made shall be

recorded, giving each separate loan a full page and serial number. Each

account shall show at the top of the page the full name and place of

residence of the borrower. On the debit side, a record of the loan and

the conditions under which made shall be entered in brief form, giving

date, amount, and period of loan; lot number or location of property

mortgaged (if any); the name in which mortgaged property is regis-

tered at the time of loan; and any special agreements made. On the

credit side shall be entered separately all payments of both interest and

principal made by the borrower, giving dates and amounts.

(3) A receipt in duplicate, in ink or typewriting, must be prepared

for every payment made by borrowers, and shall be signed by the

lender or his authorized agent, and delivered at time of payment. The

duplicate of each receipt shall be retained by the lender.

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(4) A printed notice, large enough to attract attention, and reading

both in the English and Chamorro languages, "Be sure to get a

receipt," shall be displayed conspicuously at the place of business of

the lender.

(f) During such periods as licenses to loan money are in effect a

representative of the government of Guam will be appointed by the

Governor, whose duty it will be to inspect quarterly, or more frequently if

necessary, the records outlined in this section; ascertain their general

conditions; report any deviations from the intent of this section; and make

recommendations thereon. Report will be made in writing to the Governor.

Violation of any provision of this section shall be punished as a misde-

meanor.