Security of Deposits

COL1242015 CH. 21 INVESTMENTS AND DEPOSITS Deposits or investment certificates insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation do not require further security. To be eligible to receive or retain other active or inactive deposits, an eligible bank shall place with, or to the accounts of, the government of Guam, as security for such deposits, securities of a type herein below specified, and approved by the Director of Administration, in an amount in value at least ten percent in excess of the amount of monies deposited with the bank:

(a)Treasury notes or bonds of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and in interest;

(b)Any evidence of indebtedness of the government of Guam;

(c)Investment certificates of the Federal Home Loan Bank;

(d)Such other securities as may be hereafter approved by the Director of Administration and the Governor of Guam.