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11 GCAFINANCE & TAXATION
CH. 133 ACCOUNTS, REPORTS, AUDITS AND STATEMENTS
CHAPTER 133
ACCOUNTS, REPORTS, AUDITS AND STATEMENTS
§ 133101.
§ 133102.
§ 133103.
§ 133104.
§ 133105.
§ 133106.
§ 133107.
§ 133108.
§ 133109.
Uniform Fiscal Year and Accounts.
Books of Account and Record of Appraisals.
Apportionment of Profits.
Federal Insurance Reserve Accounts.
Annual and Other Reports.
Annual Audit.
Annual Financial Statement.
Designation of Capital.
Accounts Insured Under FSLIC.
§ 133101. Uniform Fiscal Year and Accounts.
The commissioner shall have power to establish a uniform fiscal
year for all associations, and shall have power to establish a uniform
classification of accounts to be kept by associations, or to classify
associations and to establish a uniform classification of accounts for each
class, and to prescribe the manner in which such accounts shall be kept.
The commissioner may, after hearing, following notice to an association,
prescribe by order the accounts in which particular outlays and receipts
shall be entered, charged or credited. If the commissioner has established
a uniform classification of accounts it shall thereafter be unlawful for any
association to fail to keep its accounts in accordance therewith, excepting
such accounts as shall be explanatory of and supplemental to the
accounts prescribed by the commissioner.
SOURCE: GC §41500.
§ 133102. Books of Account, and Record of Appraisals.
Each association shall keep its books in such form as to show
accurately in detail its assets and liabilities and its receipts and
expenditures and shall keep records written in ink or typewriting
showing the appraised values of the real estate security held in
connection with each loan and signed in each case by the appraiser,
officer or committee charged with making such estimated valuations.
Every association shall file in writing with the commissioner the names
of the appraisers, officers and members of any committee charged with
making such estimated valuations for it.
A director, officer, agent or employee of any association shall be
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guilty of a felony who:
First: Knowingly receives or possesses himself of any of its
property otherwise than in payment for a just demand, and with
intent to defraud, omits to make or to cause or direct to be made a
full and true entry thereof in its books and accounts; or
Second: Knowingly concurs in omitting to make any material
entry thereof; or
Third: Knowingly concurs in making or publishing any written
report, exhibit or statement of its affairs or pecuniary condition
containing any material statement which he knows to be false; or
Fourth: Having the custody or control of its books, willfully
refuses or neglects to make any proper entry in the books of such
association as required by law, or to exhibit or allow the same to be
inspected and extracts to be taken therefrom by the commissioner,
or any of his deputies or examiners.
SOURCE: GC §41501.
§ 133103. Apportionment of Profits.
Profits and losses shall be apportioned at least annually. In
computing earnings or dividends on shares, the rate shall be applied to
the value thereof, subject to regulations prescribed by the by-laws or
directors in respect of payments on such shares since the last prior
apportionment. Interest unpaid, although due or accrued, on debts owing
to any association, shall not be included in calculation of its profits
available for dividends; nor shall any association, except with the
previous written consent of the commissioner, enter or at any time carry
on its books any of its assets at a valuation exceeding its actual cost to
such association. If the loan reserve mentioned in this section shall not
equal 5 percent of the aggregate unpaid principal amount of the
outstanding loans at the time of each apportionment of profits, the
directors, before declaring any dividends, shall set aside as a loan reserve
not less than 5 percent of the net profits accruing since the last prior
apportionment and shall continue so to do until said loan reserve shall
amount to at least 5 percent of the aggregate unpaid principal amount of
the loans in force secured by real property. Such loan reserve shall be
available at all times to meet any losses, whether arising from loans or
otherwise, but the directors of any association at their option may charge
losses against earnings, undivided profits or surplus. If at any time said
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loan reserve shall be in anywise impaired, it shall thereafter be restored
in like manner. Said loan reserve shall include such sum, if any, as the
directors of such association may transfer from its surplus or undivided
profits to said loan reserve. Every association may, in addition to a
dividend on its stock at a rate equal to that declared and paid or credited
on installment shares, if any, set aside from and out of the net profits, if
any, at each annual distribution thereof an amount not exceeding 1 per
cent per annum on the average loans in force during such period, or a
proportionate amount at each semiannual, quarterly or other distribution,
from which to declare additional dividends on its stock; provided,
however, that at least one-tenth of the amount so set aside shall be
carried to stock surplus until such surplus shall amount to at least 25 per
cent of the par value of the outstanding stock, and if at any time
thereafter such stock surplus shall be in anywise impaired, it shall
thereafter be restored in like manner. Subject to the requirements of this
section as to the loan reserve and stock surplus, and subject to the
provisions of other sections of this act expressly restricting the
declaration or payment of dividends, the directors of any association not
issuing shares may make, declare and pay dividends on the stock of so
much of the surplus profits arising from the business thereof as to them
appears advisable.
SOURCE: GC §41502.
§ 133104. Federal Insurance Reserve Account.
Any association by resolution of its board of directors may
irrevocably establish all or any part of any reserve or surplus account for
the sole purpose of absorbing losses; provided, however, that, except in
the case of reserve or surplus accounts which were available prior to the
adoption of such resolution for the purpose (either solely or among other
things) of absorbing losses, the written consent of the commissioner shall
first be obtained. If prior to the adoption of such resolution (a) the
reserve or surplus account so established for the sole purpose of
absorbing losses was available for the purpose (either solely or among
other things) of absorbing losses, and (b) such reserve or surplus account
constituted all or a part of, or counted toward, the investment certificate
and withdrawable share reserve referred to in Section 113108, the loan
reserve or the stock surplus referred to in Section 133103, or any other
reserve or surplus account required by or referred to in this act, then such
reserve or surplus account (excepting such part, if any, as may be
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absorbed by losses) shall continue to constitute all or a part of, or to be
counted toward, such reserve or surplus account required by or referred
to in this act.
SOURCE: GC §41503.
§ 133105. Annual and Other Reports.
Each association shall make a full report in writing to the
Commissioner annually, within thirty (30) days after the close of its
fiscal year, which report shall be verified by its president or vicepresident and secretary or treasurer, showing accurately the financial
condition of such association at the end of such preceding fiscal year and
the income and expenses of such association during such preceding fiscal
year, together with such statistical and other information as the
Commissioner may require, all in such form and detail as the
Commissioner may prescribe. Each association shall also make any
further reports which the Commissioner may require and in such form
and as to such matters relating to the conduct of the business of such
association as the Commissioner may designate. A copy of each annual
report made to the Commissioner pursuant to this section shall be kept at
the Office of the Commissioner, and shall be open to examination by any
investor of the reporting association, subject to such reasonable
regulations as the Commissioner may prescribe. If any association fails
to make any report required from it pursuant to this section within thirty
(30) days after such report is due, the Commissioner shall immediately
cause the books, papers and affairs of such association to be examined at
the expense of such association.
SOURCE: GC §41504.
§ 133106. Annual Audit.
Each association, at least once in each year, shall cause its books
and accounts to be audited at its own expense by a certified public
accountant of any of the states or territories of the United States or by
such other accountants selected by such association as shall be approved
by the commissioner. Such annual audit shall cover the fiscal year unless
the commissioner shall fix a different period which he may do in the case
of any association. Each association shall furnish to the commissioner
annually within 90 days after the end of the period covered by such audit,
two signed copies of the report of such accountant or accountants
showing the result of such audit and including a balance sheet of such
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association at the date of such audit and a statement of the income and
expenses of such association during the year ending with the date of such
audit which balance sheet and statement of income and expenses shall be
certified by such accountant or accountants. The commissioner shall
have power to prescribe the scope of such audit, and to require, such
accountant or accountants to furnish him with information additional to
that contained in the report of such audit. A copy of each report furnished
to the commissioner pursuant to this section shall be kept at the office of
the commissioner, and shall be open to examination by any investor of
the association in question, subject to Section 141101 of this act and to
such reasonable regulations as the commissioner may prescribe. In lieu
of such audit, or as a portion of such audit, the commissioner may accept
any audit, or that portion or any audit, made exclusively by the
examiners for the Home Loan Bank Board, Federal Home Loan Bank or
Federal Savings and Loan Insurance Corporation.
SOURCE: GC §41505.
§ 133107. Annual Financial Statement.
The Commissioner shall have power in his discretion to require
each association to mail once in each year within sixty days after the
close of its fiscal year to each of the investors of such association a copy
of a financial statement, showing, in such form and detail as the
commissioner may require, the amount and character of the assets, and
liabilities of such association at the end of its preceding fiscal year;
provided, however, that any association in lieu of mailing such financial
statements to its investors as aforesaid may publish a copy of such
financial statement in any newspaper of general circulation published in
Guam.
SOURCE: GC §41506.
§ 133108. Designation of Capital.
Each association issuing shares shall designate the capital
attributable to such shares, in any statement or advertisement which it
shall publish in which any reference shall be made to such capital, as
withdrawable capital; in any such statement or advertisement the capital
attributable to shares shall be stated separately from the capital
attributable to stock, and shall not be combined. No association shall
publish any statement or advertisement of its capital authorized or
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subscribed, unless it shall also publish in connection therewith the
amount of its capital actually paid up.
SOURCE: GC §41507.
§ 133109. Accounts Insured Under FSLIC.
Notwithstanding any provision of law including §§113108 and
133103 of this Code). a savings and loan association whose accounts are
insured by the Federal Savings and Loan Insurance Corporation (FSLIC)
shall be deemed to meet all net worth, reserve or capital requirements for
all purposes of this Act if the association is in compliance with the
regulatory net worth, reserve or capital requirements established by the
FSLIC for associations whose accounts are insured by the FSLIC. An
association whose accounts are insured by the FSLIC may include as net
worth, reserves or capital all items that the FSLIC permits FSLIC insured
associations to include as net worth, reserves or capital for purposes of
meeting any net worth, reserve or capital requirements established by the
FSLIC.
SOURCE: GC §41508.
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