Successors to Lessees and Applicants

(a)[No text]

(1)Upon the death of the lessee or applicant, his interest in the tract or tracts and the improvements thereon, including growing crops (either on the tract or in any collective contract or program to which the lessee is a party by virtue of his interest in the tract or tracts), shall vest in the relatives of the decedent as provided in this paragraph. From the following relatives of the lessee, or applicant, spouse, children, grandchildren, parents, grandparents, siblings, widows or widowers of the children or siblings, or nieces and nephews, the lessee or applicant shall designate the person or persons to whom he directs his interest in the tract or tracts to vest upon his death. Such person or persons must be qualified to be a lessee of Chamorro Land Trust Property; provided, that such person or persons need not be eighteen

(18)years of age; provided, further, however, that, if the person designated by the lessee:

(A)is the lessee’s spouse;

(B)has been married to the lessee for at least the past seven

(7)years;

(C)is residing on the property with the lessee in a structure that has been approved as a residence at the time of the lessee’s death; and

(D)is not an eligible beneficiary as defined under this Act, such person shall, upon the death of the lessee, receive a life estate in the remainder of the lease, and upon termination of the life estate, assignment of the lessee’s remaining interest in the lease shall be governed by the applicable provisions of the Chamorro Land Trust Act as if the lessee had died without designating his or her spouse as a beneficiary.

(2)Such designation must be in writing, must be specified at the time of execution of such lease or application with a right in such lessee or applicant in similar manner to change such beneficiary at any time and shall be filed with the Commission and approved by the Commission in order to be effective to vest such interests in the successor or successors named. A lessee may elect to provide for the surrender of the lot upon death and may select a recipient for the proceeds from the surrender.

(3)In the absence of such a designation as approved by the Commission, the Commission shall select from the relatives of the lessee in the order named above as limited by the foregoing paragraph one

(1)or more persons who are qualified to be lessees of Chamorro Land Trust Property except as hereinabove provided, as the successor or successors of the lessee’s interest in the tract or tracts, and upon the death of the lessee, his interest shall vest in the person or persons so selected. The Commission may select such a successor or successors after the death of the lessee, and the rights to the use and occupancy of the tract or tracts may be made effective as of the date of the death of such lessee. CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021

(4)In the case of the death of a lessee or applicant leaving no such relative qualified to be a lessee of Chamorro Land Trust Property, the land subject to the lease shall resume its status as unleased Chamorro Land Trust Property and the Commission is authorized to lease such land to an eligible beneficiary or beneficiaries as provided in this Chapter.

(5)Upon the death of a lessee leaving no such relative qualified to be a lessee of Chamorro Land Trust Property homelands, or the cancellation of a lease by the Commission, or the surrender of a lease by the lessee, the Commission shall appraise the value of all such improvements and growing crops and shall pay to the legal representative of the deceased lessee, or to the previous lessee, as the case may be, the value thereof, less any indebtedness to the Commission, or for taxes, or for any other indebtedness the payment of which has been assured by the Commission, from the deceased lessee or the previous lessee. Such payment shall be made out of the loan fund and shall be considered an advance therefrom reimbursable out of payments made by the successor or successors to the tract involved. Such appraisal shall be made by three

(3)appraisers, one

(1)of which shall be named by the Commission, one

(1)by the previous lessee or the legal representative of the deceased lessee, as the case may be, and the third shall be selected by the two

(2)appraisers hereinbefore mentioned.

(b)After the cancellation of a lease by the Commission in accordance with the provisions of § 75A110 or § 75A114 of this Chapter, or the surrender of a lease by a lessee, the Commission is authorized to transfer the lease or to issue a new lease to any qualified beneficiary regardless of whether or not he is related in any way by blood or marriage to the previous lessee.

(c)Should any successor or successors to a tract be a minor or minors, the Commission may appoint a guardian therefor subject to the approval of the Superior Court. Such guardian shall be authorized to represent the successor or successors in all matters pertaining to the leasehold: provided, that said guardian shall, in so representing such successor or successors, comply with the provisions of this Chapter and the stipulations and provisions contained in the lease, except that said guardian need not be an eligible beneficiary as defined in § 75A101 of this Chapter.