Guam § 82107 - Application of General Performance.

§ 82107. Application of General Performance.

Where a debtor, under several obligations to another, does an act, by

way of performance, in whole or in part, which is equally applicable to two

or more of such obligations, such performance must be applied as follows:

(1) If, at the time of performance, the intention or desire of the

debtor that such performance should be applied to the extinction of any

particular obligation be manifested to the creditor, it must be so

applied.

(2) If no application be then made, the creditor, within a

reasonable time after such performance, may apply it toward the

extinction of any obligation, performance of which was due to him

from the debtor at the time of such performance, except that if similar

obligations were due to him both individually and as a trustee he must,

unless otherwise directed by the debtor, apply the performance to the

extinction of all such obligations in equal proportion; and an applica-

COL120106

18 GCA BUSINESS S TRUCTURE & FUNCTION

tion once made by the creditor cannot be rescinded without the consent

of the debtor.

(3) If neither party makes such application within the time

prescribed herein, the performance must be applied to the extinction of

obligations in the following order; and if there be more than one

obligation of a particular class, ratably:

1. Of interest due at the time of the performance.

2. Of principal due at that time.

3. Of the obligation earliest in date of maturity.

4. Of an obligation not secured by a lien or collateral

undertaking.

5. Of an obligation secured by a lien or collateral

undertaking.