cept as otherwise provided in § 75112, each contract of loan under this chapter with the lessee or any successor or successors to his interest shall be held subject to the following conditions whether or not stipulated in the contract loan:
(a) The loans shall be repaid in periodic installments, such installments to be monthly, quarterly, semi-annual or annual as may be determined by the Commission in each case. The term of any loan shall not exceed thirty (30) years. Payments of any sum in addition to the required installments, or payment of the entire amount of the loan, may be made at any time within the term of the loan. All unpaid balances of principal shall bear interest at the rate of two and one-half percent (2½ %) a year for loans made directly from the Chamorro Home Loan Fund, or at the rate of two and one-half percent (2½%), or higher, as established by law, rule or regulation for other loans made or guaranteed by the Commission, payable periodically or upon demand as the Commission may determine. The payment of any installment due shall be postponed in whole or in part by the Commission for such reasons as it deems good and sufficient and until such later date as it deems advisable. Such postponed payments shall continue to bear interest at the rate of two and one-half percent (2½%) a year, or higher, as established by law, rule or regulation for other loans made or guaranteed by the Commission, on theunpaid principal. Notwithstanding any other provision of law, rule, regulation or this Chapter 75, this Subsection (a) shall not diminish nor relieve the Commission of its obligation to assure or effect the periodic or full repayment of loans issued to a lessee by local or Federal governmental agencies or instrumentalities or private lending institutions, where such loans have been guaranteed by the Commission

(b) In the case of the death of a lessee the Commission shall, in any case, permit the successor or successors to the tract to assume the contract of loan. In case of the cancellation of a lease by the Commission or the surrender of a lease by the lessee, the Commission may, at its option declare all installments upon the loan immediately due and payable, or permit the successor or successors to the tract to assume the contract of loan. The Commission may, in such cases where the successor or successors to the tract assume the contract of loan, waive the payment, wholly or in part, of interest already due and delinquent upon said loan, or postpone the payment of any installment thereon, wholly or in part, until such later date as it deems advisable. Such postponed payment shall, however, continue to bear interest at the rate of two and one-half percent (2½%) a year on the unpaid principle. Further, the Commission may, if it seems advisable and for the best interest of the lessees, write-off and cancel, wholly or in part, the contract of the deceased lessee, or previous lessee, as the case may be, where such loans are delinquent and deemed uncollectible. Such write- off and cancellation shall be made only after an appraisal of all improvements and growing crops on the tract involved, such appraisal to be made in the manner and as provided for by § 75109(a). In every case, the amount of such appraisal, or any part thereof, shall be considered as part or all, as the case may be, of any loan to such successor or successors.

(c) No part of the moneys loaned shall be devoted to any purpose other than those for which the loan is made.
(d) The borrower or the successor to his interest, shall comply with such other conditions, not in conflict with any

provision of this Chapter, as the Commission may stipulate in the contract of loan.
(e) The borrower or the successor to his interest shall comply with the conditions enumerated in § 75108 and with the provisions of § 75109 of this Chapter in respect to the lease of any tract.
(f) Whenever the Commission shall determine that a borrower is delinquent in the payment of any indebtedness to the Commission, it may require such borrower to execute an assignment to it, not to exceed, however, the amount of the total indebtedness of such borrower, including the indebtedness to others the payment of which has been assured by the Commission of all moneys due or to become due to such borrower by reasons of any agreement or contract, collective or otherwise, to which the borrower is a party. failure to execute such an assignment when requested by the Commission shall be sufficient ground for cancellation of the borrower’s lease or interest therein.

SOURCE: GC § 13512 repealed and reenacted by P.L. 12-226. Subsection (a) amended by P.L. 24-168:12.

2020 NOTE: Past publications included typographical errors in subsection (a) and (b) with regard to the interest rate, and the manifest error has been corrected pursuant to the authority of 1 Guam Code Ann. § 1606.

§ 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 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.
SOURCE: GC § 13513 repealed and reenacted by P.L. 12-226.

§ 75115. Ejectment, When: Loan To New Lessee For
Improvements.
In case the lessee or borrower or the successor to his interest in the tract, as the case may be, fails to comply with any order issued by the Commission under the provisions of § 75110 or § 75114 of this Chapter, the Commission may bring action of ejectment or other appropriate proceedings for the enforcement
of said order. Any tract forfeited under the provisions of § 75110
or § 75114 of this Chapter may be again leased by the Commission as authorized by the provisions of the § 75107 of this Chapter, except that the value, in the opinion of the Commission, of all improvement made in respect to such tract bythe original lessee or any successor to his interest therein shall constitute a loan by the Commission to the new lessee. Such loan shall be subject to the provisions of this section §§ 75113 and
75114 to the same extent as loans made by the Commission from the Chamorro Home Loan Fund.
SOURCE: GC § 13514 repealed and reenacted by P.L. 12-226.