12 Guam Code Ann. § 4902
Terms Used In 12 Guam Code Ann. § 4902
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Housing Corporation announced a bid for the design, building
and financing of infrastructure requirements for Lada Estates. As a result, Maeda Pacific Corporation (“”Maeda””) the selected bidder, was granted a contract to design, build and finance the project. The Guam Housing Corporation and Maeda executed a contract in the amount over Ten Million Dollars to fulfill the project’s scope of work.
(b) Furthermore, I Liheslaturan Guåhan finds that Maeda agreed to the terms such that payment would be due from a developer who would finance both the outstanding contract with Maeda and the development of the units at Lada Estates. To date, Guam Housing Corporation has entertained several bids, but is unable to secure any contract with a developer. Also, I Liheslaturan Guåhan finds that the infrastructure project was due and payable on or before November 1998.
(c) I Liheslaturan Guåhan also finds that while there have been several bid announcements, initiated by the Guam Housing Corporation, for the construction of the Lada Estates project which have been advertised in conformance with the procurement laws of Guam. Unfortunately, no bidder has been able to meet the required terms of the contract due to the provisions requiring substantial up front financial reimbursement to Maeda. As a result of this hindrance, Maeda has agreed to renegotiate some of the terms to allow for easier repayment criteria.
(d) More importantly, I Liheslaturan Guåhan in discussions with the Guam Housing Corporation and the mortgage community, identified the key problems that adversely affected the eligibility of customers and clients to participate in purchasing of not only the Lada Estates residential project, but also various single family housing development projects on Guam. Some of the problems are identified as:
(1) most prospective clients have high debt to income ratios five (5) year short term debts;
(2) most prospective clients are unable to meet the required closing cost and down payment for their first-time home; and
(3) most prospective first-time homebuyers may need the lease-to-own housing program so that they may utilize the lease term to re-establish their credit and thus qualify for a typical residential loan at the time of escrow closing of the purchase.
2017 NOTE: Subsection designations were added/altered to adhere to the Compiler’s alpha-numeric scheme pursuant to the authority granted by 1 Guam Code Ann. § 1606.
2015 NOTE: Subsection designations were altered to adhere to the
Compiler’s alpha-numeric scheme pursuant to the authority granted by 1
GCA § 1606.