(a) A license to lend money may be granted only to a bona fide resident of the Territory of Guam. Written applications for licenses must be submit- ted to the Director of Revenue & Taxation, stating name, nationality, place of residence and of proposed business, age, previous occupations, other present occupations, the location and value of all real estate property registered in the name of the applicant, and his own personal cash capital to be used in the money lending business. The licensed moneylender hereby is forbidden to act as an agent for lending money belonging to another, directly or indirectly. He may lend only his own money.

(b) All costs for fees for administering oath, witnessing loans or payments, and all other costs incidental to the making of a loan and the collection of interest and principal thereof, except for making out or record- ing a mortgage or title, shall be borne wholly by the moneylender, except when otherwise ordered by a court in cases of court action for defaulted payments.

(c) The moneylender must deliver to the borrower at the time a loan is consummated, the full amount of the stipulated loan in cash, without rebate, draw back, or other subterfuge. The discounting (advance payment) of interest is forbidden, except when the interest rate is ten percent (10% per

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year or less. Interest is to be paid when accrued and due, or (solely for the convenience of the borrower) a reasonably short time before due.

(d) Applicants for license to lend money must demonstrate that they can speak, read, and write the English language clearly and that they possess sufficient educational qualifications to properly conduct the busi- ness they contemplate establishing. A statement under oath, that the applicant is the sole owner of the capital to be invested and used in the loan business, shall be required. This statement shall be filed with the Director of Administration.

(e) All persons licensed to conduct the business of loaning money at interest, with or without security will, at all times, be required to maintain in legible form, and have available for authorized inspection, the following records:

(1) A cash book with double columns, on the debit side of which all payments made by borrowers on the principal and interest of loans shall be entered in separate columns provided for this purpose. Date of payment, and the name and place of residence of each payee shall be entered on the same line as the entry for amount paid. The credit side shall show the date, name, and residence of the borrower, and the amount of the loan. This cash book must be balanced at least once a month.

(2) A ledger, or loan record, in which all loans made shall be recorded, giving each separate loan a full page and serial number. Each account shall show at the top of the page the full name and place of residence of the borrower. On the debit side, a record of the loan and the conditions under which made shall be entered in brief form, giving date, amount, and period of loan; lot number or location of property mortgaged (if any); the name in which mortgaged property is regis- tered at the time of loan; and any special agreements made. On the credit side shall be entered separately all payments of both interest and principal made by the borrower, giving dates and amounts.

(3) A receipt in duplicate, in ink or typewriting, must be prepared for every payment made by borrowers, and shall be signed by the lender or his authorized agent, and delivered at time of payment. The duplicate of each receipt shall be retained by the lender.

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(4) A printed notice, large enough to attract attention, and reading both in the English and Chamorro languages, “Be sure to get a receipt,” shall be displayed conspicuously at the place of business of the lender.

(f) During such periods as licenses to loan money are in effect a representative of the government of Guam will be appointed by the Governor, whose duty it will be to inspect quarterly, or more frequently if necessary, the records outlined in this section; ascertain their general conditions; report any deviations from the intent of this section; and make recommendations thereon. Report will be made in writing to the Governor. Violation of any provision of this section shall be punished as a misde- meanor.

SOURCE: CC § 1924, reference to Director of Finance changed to Revenue & Taxation pursuant to P.L. 9-239, effective August 13, 1968.