Guam § 75107 - of this Chapter may be guaranteed. This guarantee may be for home or commercial loan purposes.

§ 75107. of this Chapter may be guaranteed. This guarantee may be for home or commercial loan purposes.

The loan guarantees shall be subject to the restrictions imposed by §§ 75108 and 75113 of this Act.

The Commission’s guarantee of repayment shall be adequate security for a loan under any Guam law

prescribing the nature, amount, or form of security, or requiring security upon which loans may be made.

This guarantee shall include, but not be limited to, loans secured or obtained through the CIP and other

programs of the Federal Home Loan Bank of Seattle, United States Federal agencies and instrumentalities,

or any other public or private lending institution or program duly authorized to do business on Guam.

(1) Loan Default Remedy. In the event of a loan default, the Commission shall offer and reassign

to the next qualified applicant the opportunity to assume any loan in default guaranteed by the

Chamorro Loan Guarantee Fund. The Commission shall pursue this remedy to avert a loan default

prior to making any direct repayment of a loan and accrued interest with funds from the Chamorro

Loan Guarantee Fund.

(2) For purposes of this Section, a mortgage is considered in default when payments due upon the

mortgage have not been satisfactorily tendered for a period of one hundred twenty (120) calendar days.

The lending institutions shall provide to the Commission advance notice of a potential default in

instances where payments due upon a mortgage have not been satisfactorily tendered for a period of

sixty (60) calendar days. In cases where the mortgage or loan is obtained through the lending programs

of United States agencies and instrumentalities, the period a loan is deemed to be in default if payments

due upon the mortgage have not been satisfactorily tendered are determined by the applicable laws,

rules and regulations of the respective programs.

(3) Upon notification of the default of a loan guaranteed by the Chamorro Loan Guarantee Fund,

the Commission shall, during the period pending reassignment of the loan or the determination of the

Commission to directly repay the loan and accrued interest due, bring current the payments due the

lender with funds so reserved for such purposes in the Chamorro Loan Guarantee Fund. The aggregate

amount of the payments made by the Commission to bring the loan current may be recovered by the

Commission by adding such amount to the principal amount of the loan being reassigned to and

assumed by a qualified Chamorro. All funds so expended and subsequently recovered shall be

deposited in the Chamorro Loan Guarantee Fund.

(i) Applicable Taxes on Chamorro Homelands. Notwithstanding any other provision of law:

(1) Taxes on Chamorro Land Trust Land. The holder of any lease or license for the occupation or

beneficial use of Chamorro Homelands shall be subject to all applicable taxes on the lessee's or

licensee's interest in the land and on any improvements to any land so leased or licensed. Taxes

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assessed shall be collected by the Department of Revenue and Taxation, which shall maintain a

separate record for all such taxes collected.

(2) Deposit and Earmarking of Funds Collected. All taxes identified in Item 1 of Subsection (i)

of this Section shall be deposited in the Chamorro Loan Guarantee Fund, and is earmarked to carry

out the purposes set forth pursuant to this Chapter. All deposits due to the CLTC pursuant to this

Section shall be made within thirty (30) days of collection. The Department of Revenue and Taxation

shall report annually on March 30 to the Speaker of I Liheslaturan Guåhan and the Chamorro Land

Trust Commission as to the amounts assessed, collected, and deposited to the CLTC pursuant to this

Section.

(j) The Chamorro Land Trust Operations Fund. The Commission shall create a Fund called the

Chamorro Land Trust Operations Fund (Fund), which shall be maintained separate and apart from any other

funds and is subject to I Liheslaturan Guåhan’s appropriation beginning in Fiscal Year 2006.

Notwithstanding any other provision requiring the deposit of proceeds to other funds, the Fund shall receive

the proceeds of all land use permits, monetary contributions and fees. The Commission shall create, within

thirty (30) days of enactment, a reconciliation of all accounts in which such proceeds were deposited and

shall transfer the remaining balances to the Fund. The Fund shall be used for the operational expenses of

the Chamorro Land Trust Commission.

The Commission shall report on a quarterly basis to the Speaker of I Liheslaturan Guåhan the revenues

collected and expended from the Fund and post the same on the Commission’s website. The Fund shall be

subject to audit by the Guam Public Auditor.