Guam § 74108 - Loan Standards and Conditions.

§ 74108. Loan Standards and Conditions.

All loans extended under this Chapter shall comply with the

following standards and conditions:

(a) Application for Assistance. Any landowner may apply for a

loan of funds by setting forth on an application form authorized by

the Authority a statement showing:

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(i) name of the landowner,

(ii) description of the land interests which are the subject

of the claim,

(iii) written description of the plan of the landholder to

seek compensation, return of land or redress of harms suffered,

(iv) a copy of a written fee agreement between the

landowner and attorney who represents the landowner in

pursuit of the claim,

(v) if the applicant has an outstanding debt to an appraiser,

an assignment of not less than ten percent (10%) of the loan

proceeds to the appraiser to be applied against the debt, and

(vi) a proposed budget for the expenditure of all loan

proceeds;

(b) Limitation on Amount. No single loan under this Chapter

shall exceed Two Hundred Twenty Thousand Dollars ($220,000).

(c) Promissory Note and Assignment. Any recipient of a loan

shall, at the time the loan is granted, execute a promissory note to

Guam Economic Development Authority, payable to the Authority

on demand after the recipient receives court awarded attorney’s fees

or expenses in connection with the litigation. Any such recipient

shall also execute, at the time the loan is granted, an assignment to

Guam Economic Development Authority of proceeds ultimately

obtained by such recipient in an award of court awarded fees or

expenses in connection with litigation. As a condition of receiving

the proceeds of the loan, the attorney of the recipient (except for the

Public Defenders Service Corporation), shall personally guarantee

payment of said note to the extent of proceeds ultimately obtained

by such recipient in an award of court awarded fees or expenses in

connection with litigation.

(d) Notices Filed in Court File. The Authority shall cause

notices to be filed in the Court File of pending litigation setting

forth the fact of the making of such assignments and the interests of

the Authority under such assignments and setting forth the interest

of the Authority and Government of Guam in respect to funds

previously provided by P.L. 14-98 and P.L. 16-111.

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(e) Accounting for Funds Under this Chapter. The use of all

funds loaned under this Chapter shall be accounted for on a monthly

basis in a detailed accounting submitted to the Authority by the

applicant which shall indicate the date, type of expenditures made

and copies of billings received by the landowner for services

rendered to the landowner in preparation and pursuit of claims under

this Chapter.

(f) Accounting and Auditing of Funds Provided for Prosecution

of Claims. The Authority shall employ independent outside certified

public accounts for the purpose of regularly auditing the books and

records of the Authority and of each applicant and the attorney of

each applicant with respect to the administration of funds for the

purpose of prosecution of claims hereunder and such auditor shall

conduct such audits and make such reports no less frequently than

quarterly during the first year after enactment of this Legislation and

no less frequently than semi-annually thereafter. The reports shall be

forwarded by the Authority to the Legislature immediately after

their preparation.

(g) Open Records. As a condition of receiving any loan, all

applications by applicants hereunder, all records with respect to

administration of funds by attorneys and all reports of audit shall be

public records regularly available for inspection or photocopying by

the members of the general public or the news media.