Guam § 75112 - Chamorro Home Loan Fund; Chamorro Home Development Fund; Chamorro Educational

§ 75112. Chamorro Home Loan Fund; Chamorro Home Development Fund; Chamorro Educational

Fund; Chamorro Commercial Loan Fund; Chamorro Home Repair Loan Fund; and the Chamorro

Loan Guarantee Fund.

(a) There are hereby established three (3) revolving funds to be known as the Chamorro Home Loan

Fund, the Chamorro Commercial Loan Fund and the Chamorro Home Repair Fund and four (4) special

funds to be known as the Chamorro Home Development Fund, the Chamorro Educational Assistance Fund,

Chamorro Land Trust Operations Fund and the Chamorro Loan Guarantee Fund.

(b) Chamorro Home Loan Fund. There is hereby authorized to be appropriated from the

Unappropriated Surplus of the General Fund the sum of One Million Dollars ($1,000,000) as initial capital

to said Fund. In furtherance of the purposes herein, the Commission may do any one or more of the

following with moneys from this Fund and any borrowed moneys under (6) herein below.

(1) The Commission may extend the benefits of the Fund only to native Chamorros as defined in

this Chapter.

(2) The Commission may loan, or guarantee the repayment of or otherwise underwrite any

authorized loan, up to a maximum amount not to exceed the financial ability of the borrower to satisfy

the indebtedness as approved by the lender; provided, that where, upon the death of a lessee living on

Chamorro homelands who leaves no relatives qualified to be a lessee of Chamorro homelands, or in

the event of the cancellation of a lease by the lessee or by the Commission for cause, then the

Commission shall be authorized to make payment and to permit assumption of loans, subject to the

provisions of § 75113(b).

(3) Where the dwelling is on Chamorro homelands, anything in the Chapter to the contrary

notwithstanding, either the Commission or other governmental agencies may make loans, and the loans

made in connection with the repair or maintenance or purchase or erection or improvement of

dwellings shall be subject to, all applicable provisions of the Chapter, including but not limited to the

provisions of §§ 75107, 75108, 75109, 75110, 75113, 75114 and 75116, and to such legislative

amendments of the Chapter herein or thereafter enacted, provided such amendments do not change the

qualifications of lessees or constitute a reduction or impairment of the Chamorros Home Loan Fund,

or Chamorro Home Development Fund or otherwise required the consent of the United States. Loans

made to lessees by governmental agencies shall be approved by the Commission, and the Commission

may assure the payment of such loans, provided that the Commission shall reserve the following rights,

among others: the right of succession to the lessee’s interest and assumption of the contract of loan;

right to require that written notice be given to the Commission immediately upon default or

delinquency of the lessee; and any other rights necessary to protect the monetary and other interests of

the Commission.

(4) Where the dwelling is on non-Chamorro homelands, anything in the Chapter to the contrary

notwithstanding, either the Commission or financial institutions may make loans, and in connection

with such loans, the Commission shall be governed by, and the loans made in connection with the

repair or maintenance or purchase or erection or improvement of dwellings shall be subject to, such

terms and conditions as the Commission may, by rules and regulations promulgate, provided, the

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Commission shall require any loan made or guaranteed or otherwise underwritten to be secured

adequately and suitably by a first or second mortgage or other securities;

(5) The Commission shall establish interest rate or rates at two and one-half per cent (2½%) a

year or higher, in connection with authorized loans on Chamorro homelands or non-Chamorro

homelands, and where the going rate of interest on loans made by financial institutions to native

Chamorros is higher, pay from the Fund or the moneys borrowed, the difference in interest rates;

(6) The Commission may borrow and deposit funds into a special revolving account for the

purposes of repairing, maintaining, purchasing, erecting or improving dwellings on Chamorro

homelands and non-Chamorro homelands and related purposes from financial institutions,

governmental, or private;

The Commission may purchase or otherwise acquire, or agree so to do, before or after default, any

notes and mortgages or other securities, covering loans under this program made by financial

institutions, and guarantee the repayment of or otherwise underwrite the loans, and accept the

assignment of any notes and mortgages or other securities in connection therewith;

(7) The Commission may exercise the functions and reserved rights of a lender of money or

mortgagee of residential property in all loans by financial institutions made to Chamorros under this

program. The functions and reserved rights shall include but not be limited to, the purchasing,

repurchasing, servicing, selling, foreclosing, buying upon foreclosure, guaranteeing the repayment or

otherwise underwriting, of any loan, protecting of security interest, and after foreclosure, the repairing,

renovating or modernization and sale of the property covered by the loan and mortgage, to achieve the

purposes of this program while protecting the monetary and other interests of the Commission.

(c) Chamorro Home Development Fund. Twenty-five percent (25%) of the amount of moneys covered

into the Chamorro Home Loan Fund annually shall be transferred into the Chamorro Home Development

Fund. The moneys in said development fund shall be available, with the prior written approval of I

Maga’håga/Maga’låhi for construction of sanitary sewage facilities for the construction of roads through

and over Chamorro homelands, and for other non-revenue producing improvements.

(d) Match moneys. The Commission is authorized and empowered to use moneys in the development

fund, with the prior written approval of I Maga’håga/Maga’låhi, to match Federal funds available for the

same purposes and to that end is authorized to enter into such undertakings, agree to such conditions,

transfer funds therein available for such expenditures and to perform such other acts and things, as may be

necessary or required, as a condition to securing match funds for such projects or works.

(e) Chamorro Education Assistance Fund. Ten percent (10%) of the amount of moneys covered into

the Chamorro Home Loan Fund annually shall be transferred into the Chamorro Educational Assistance

Fund. The Department of Education shall establish and direct educational projects after consultation with

the University of Guam and the Commission which shall be directed primarily for the educational

improvement of the children of lessees, which shall be funded with this Fund with prior written approval

of I Maga’håga/Maga’låhi.

(f) Chamorro Commercial Loan Fund. The Commission is authorized to create a Fund out of which

loans may be made to those holding leases issued under § 75107 of this Chapter. The loans shall be for

theaters, garages, service stations, markets, stores, and other mercantile establishments and these shall all

be owned by lessees or by organizations formed and controlled buy said lessees. The amount and duration

of loans from this Fund at any one time to any lessee, or successor or successors in interest, shall be

determined by the Commission on the basis of the proposed operations of lessee(s) and the security

available, provided that where, upon the death of a lessee leaving no relative qualified to be a lessee of

Chamorro homelands, or the cancellation of a lease by the Commission, or the surrender of a lease by the

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lessee, the Commission shall make the payment provided for by § 75109(a). The amount of any such

payment made to the legal representative of the deceased lessee, or to the previous lessee, as the case may

be, shall be considered as part or all, of any such loan to the successor or successors, without limitations as

to any pre-established maximum amount but subject to provisions of Paragraph (b) of § 75113.

(g) Chamorro Home Repair Loan Fund. There is hereby authorized to be appropriated from the

Unappropriated Surplus of the General Fund the sum of One Hundred Thousand Dollars ($100,000) for the

Chamorro Home Repair Loan Fund. The moneys in this Fund shall be used to make loans in amounts not

in excess of Five Thousand Dollars ($5,000) to lessees for repairs to their existing homes and for necessary

additions to such homes due to increase in family size. Such loans may be made for periods not to exceed

five (5) years.

(h) The Chamorro Loan Guarantee Fund. The Commission is authorized to create a Fund out of which

loans made by governmental agencies or lending institutions to those holding leases or licenses issued under