Guam § 75114 - Insurance by Borrowers: Acceleration of Loans; Lien and Enforcement Thereof.

§ 75114. Insurance by Borrowers: Acceleration of Loans; Lien and Enforcement Thereof.

The Commission may require the borrower to insure, in such amount as the Commission may

prescribe, any livestock, machinery, equipment dwellings and permanent improvements purchased or

constructed out of any moneys loaned by the Commission; or, in lieu thereof, the Commission may directly

take out such insurance and add the cost thereof to the amount of principal payable under the loan.

Whenever the Commission has reason to believe that the borrower has violated any condition enumerated

in Paragraphs (b), (d), (e), or (f) of § 75113 of this Chapter, the Commission shall give due notice and afford

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opportunity for a hearing to the borrower or the successor or successors to his interest, as the case demands.

If upon such hearing the Commission finds that the borrower has violated the condition, the Commission

may declare all principal and interest of the loan immediately due and payable notwithstanding any

provisions in the contract of loan to the contrary. The Commission shall have a first lien upon the borrower’s

or lessee’s interest in any lease, growing crops, either on his tract or in any collective contract or program,

livestock, machinery and equipment purchased with moneys loaned by the Commission, and in any

dwellings, or other permanent improvements paid by the Commission, and of all indebtedness of the

borrower, the payment of which has been assured by the Commission, including loans from governmental

agencies where such loans have been approved by the Commission. Such lien shall have priority over any

other obligation for which the property subject to the lien may be security. The Commission may, at such

times as it deems advisable, enforce any such lien by declaring the borrower’s interest in the property

subject to the lien to be forfeited, any lease held by the borrower canceled, and shall thereupon order such

lease-hold premises vacated and the property subject to the lien surrendered within a reasonable time. The

right to the use and occupancy of the Chamorro homelands contained in such lease shall thereupon revest

in the Commission which may take possession of the premises covered therein and the improvements and

growing crops thereon: provided that the Commission shall pay to the borrower any difference which may

be due him after the appraisal provided for in Paragraph (a) of § 75109 of this Title has been made.