Conditions of Loans

Except as otherwise provided in § 75A112, 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 Beneficiary 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 the unpaid principal. Notwithstanding any other provision of law, rule, regulation or this Chapter 75A, 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 CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021 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 § 75A109(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 § 75A108 and with the provisions of § 75A109 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.