Bank Activities Permitted

(a)A Territorial Bank insured by the Federal Deposit Insurance Corporation

(FDIC)is authorized to engage directly or through a subsidiary in any banking activity, any activity closely related to banking and any nonbank activity to do any act and to own, possess and carry as assets, property of the character, including stock, which national banks chartered by the United States government and any bank chartered by a state of the United States or any subsidiary of a bank holding company regulated by the Federal Reserve Board under the Bank Holding Company Act of 1978 may now or hereafter be authorized or permitted by state or federal law, regulation or federal banking agency regulatory ruling or letter opinion to engage, on the same terms and conditions that would be imposed on a national bank, a state chartered insured bank, or a subsidiary of a bank holding company engaged in such activity; provided however, that a territorial bank will not by this statute be made subject to regulation by, be required to report to or be subject to audit by any federal agency by which it is not otherwise regulated.

(b)To the extent authorized or allowed under case law or federal banking statutes, regulations or regulatory decisions for any other bank, an insured Guam Bank may directly or indirectly engage in or invest in a subsidiary which engages in broker and dealer activities in securities, insurance activities, underwriting, community development, real estate, management consulting, data processing, investment advisory services, check collection and guaranteeing, courier services, foreign exchange services, credit research and reporting, futures commissions merchant, consumer financial services counseling, real estate appraisals and financing, tax planning and preparation, providing bank services to other banks; purchasing, constructing and leasing public or municipal buildings; investing in and operating a safe-deposit corporation or small business investment company; investing in state or territorial housing corporations; acting as a finder for a buyer and seller; arranging real estate financing with third parties; investing in and operating an advisory and discount brokerage; acting as an agent in the sale or placement of federal, state or territorial government securities; acting as an agent in the sale of fixed rate and variable annuities; arbitrage activities; CH. 106 BANKS armored car messenger services; operating automated teller machine networks; automobile, equipment and personal property leasing; making charitable contributions; operating closed or open ended collective investment funds or mutual funds; collateralizing public deposits received from local or the territorial government; issuing underwriting, dealing in, purchasing and selling collateralized mortgage obligations; dealing in commodities futures or operating as a commodity pool operator; selling or leasing computer hardware or software in conjunction with data processing services or to other financial institutions; operating a credit card bank; securitizing credit card receivables; underwriting and selling credit life and disability insurance for loan customers; collecting debts for third parties participating in debt/equity swaps; offering financial advice and counseling to mutual funds; acting as a general contractor for its own real estate; acting as a custodian for individual retirement account funds; acting as a finder for insurance companies; leasing bank premises or bank owned real estate; issuing clean letters of credit; establishing and operating loan production offices; messenger services; mortgage servicing; operating a postal substation on its premises; privately placing asset backed securities, mortgage related products, debt and equity securities, limited partnership interests in real estate and investment securities; offering security and guard services and security monitoring services; purchasing, selling, underwriting, dealing in and holding Small Business Administration guaranteed pool certificates and general obligations of any state, territory or political subdivision thereof; purchasing, holding and using a seat on any recognized United States stock exchange; purchasing, selling, dealing in and underwriting obligations of the United States Government, its agencies and political subdivisions; operating a title insurance company in conjunction with a real estate mortgage loan business; acting as an agent in selling or underwriting title insurance in connection with mortgage loans; acting as a transfer agent for corporate debt and equity issues; acting as a travel agent in conjunction with a bank operated travel club or incidental to banking; engaging in trust powers; and offering vault, lock and ATM services to other financial institutions as correspondent services, subject to the least restrictive rules, regulations and letter ruling terms and conditions permitting national or FDIC insured banks, bank subsidiaries or bank holding company subsidiaries to engage in the foregoing activities. The foregoing list is not intended to be comprehensive.