(a) In liquidating a territorial bank the Commissioner may exercise any power thereof but he shall not, without the approval of the District Court of Guam:

(1) Sell any asset of the organization having a value in excess of One Thousand Dollars ($1,000).

(2) Compromise or release any claim if the amount of the claim exceeds Five Hundred Dollars ($500), exclusive of interest.

(3) Make any payment on any claim, other than a claim upon an obligation incurred by the Commissioner, before preparing and filing a schedule of his determinations in accordance with this Title.

(b) Within six (6) months of the commencement of liquidation, the Commissioner may by his election terminate any executory contract for services or advertising to which the territorial bank is a party or any obligation of the bank as a lessee. A lessor who receives sixty (60) days notice of the Commissioner’s election to terminate the lease shall have no claim for rent other than rent accrued to the date of termination nor for damages for such termination.

(c) As soon after the commencement of liquidation as is practicable, the Commissioner shall take the necessary steps to terminate all fiduciary positions held by the territorial bank and take such action as may be necessary to surrender all property held by the bank as a fiduciary and to settle its fiduciary accounts.

(d) The right of any agency of the United States insuring deposits to be subrogated to the rights of depositors upon payment of their claim shall not be less extensive than the law of the United States requires as a condition of the authority to issue such insurance or make such payment.

(e) As soon after the commencement of liquidation as practicable the Commissioner shall send notice of the liquidation to each known depositor, creditor and lessee of a safe deposit box or bailor of property held by the bank at the address shown on the books of the institution. The notice shall also be published in a newspaper of general circulation in Guam once a week for three (3) successive weeks. The Commissioner shall send with the notice a statement of the amount shown on the books of the institution to be the claim of the depositor or creditor. The notice shall demand that property held by the bank as bailee or in a safe deposit

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box be withdrawn by the person entitled thereto and that claims of depositors and creditors, if the amount claimed differs from that stated in the notice to be due, be filed with the Commissioner before a specified date not earlier than sixty (60) days thereafter in accordance with the procedure prescribed in the notice.

(f) Safe deposit boxes the contents of which have not been removed before the date specified shall be opened by the Commissioner in the manner provided for boxes upon which the payment of rental is in default and the sealed packages containing the contents and the certificates together with any unclaimed property held by the bank as bailee and certified inventories thereof shall be held by the Commissioner for two (2) years unless sooner claimed by the person entitled thereto. After two (2) years the Commissioner may sell or otherwise appropriately dispose of the property. The proceeds of a sale shall be transferred to the Treasurer of Guam as abandoned funds.

(g) Within six (6) months after the last day specified in the notice for the filing of claims or such longer period as may be allowed by the court in which notice of possession has been filed, the Commissioner shall:

(1) Reject any claim if he doubts the validity thereof.

(2) Determine the amount, if any, owing to each known creditor or depositor and the priority class of his claim under this Title.

(3) Prepare a schedule of his determinations for filing in the court in which notice of possession was filed.

(4) Notify each person whose claim has not been allowed in full and publish once a week for three (3) successive weeks a notice of the time when and the place where the schedule of determinations will be available for inspection and the date, not sooner than thirty (39) days thereafter, when the Commissioner will file his schedule in court.

(h) Within thirty (30) days after the filing of the Commissioner’s schedule, any creditor, depositor or stockholder may file an objection to any determination made. Any objections so filed shall be heard and determined by the court, upon such notice to the Commissioner and interested claimants as the court may prescribe. If the objection is sustained the court shall direct an appropriate modification of the

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schedule. After filing his schedule the Commissioner may, from time to time, make partial distribution to the holders of claims which are undisputed or have been allowed by the court, if a proper reserve is established for the payment of disputed claims. As soon as is practicable after the determination of all objections the Commissioner shall make final distribution.

(i) The following claims shall have priority.

(1) obligations incurred by the Commissioner;

(2) wages and salaries of officers and employees earned during the four month period preceding the Commissioner’s possession in an amount not exceeding Three Thousand Dollars ($3,000) for any one person;

(3) fees and assessments due to the division;

(4) deposits to the extent of Ten Dollars ($10) for each depositor.

(j) After the payment of all other claims with Interest at the maxi- mum rate permitted by the Board on time deposits, the Commissioner shall pay claims otherwise proper which were not filed within the time prescribed.

If the sum available for any class is insufficient to provide payment in full, such sum shall be distributed to the claimants in the class pro rata.

(k) Any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests.

(1) Unclaimed funds remaining after completion of the liquidation shall be retained for five (5) years by the Commissioner unless sooner claimed by the owner. At the expiration of such period the remaining sum shall be transferred to the Treasurer of Guam as abandoned funds.

(m) When the assets have been distributed in accordance with this Title, the Commissioner shall file an account with the court. Upon approval thereof, the Commissioner shall be relieved of liability in connection with the liquidation and the charter shall be canceled.

SOURCE: GC § 30703.

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2013 NOTE: Pursuant the authority granted by 1 Guam Code Ann. § 1606, numbers and/or letters in subsection (i) were altered to adhere to the Compiler’s alpha-numeric scheme.

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ARTICLE 5
PROHIBITED PRACTICES, SANCTIONS