Penalties for failure to furnish
records or information to any of the
taxing units of government for the
purpose of computation, assessment,
or collection of any tax or license fee
are specified in Chapter 18 of the
Trust Territory Code. A failure to pay
taxes subjects the taxpayer to a civil
suit brought by the taxing unit concerned pursuant to Section 1147(c) of
the Trust Territory Code. While the
Trust Territory Code does not specifically contain provisions concerning
foreclosures of land to enforce or
collect taxes, the taxing unit mayavail
itself of land foreclosure in an execution on a judgment. In cases of nonpayment of property tax under
Section 1147(a) of the Trust Territory
Code, the following provision also
applies:
“Any taxes imposed or authorized
. upon property shall be a lien
upon the property, and may be
collected by levy upon it inthe
same manner as the levy of an
execution.”
Pursuant to the above section, land or

interest therein may be foreclosed
provided the land involved or interest
therein is “owned solely by the
judgment debtor, in his own right.”

The court, however, must first

mine for itself before ordering t
or transfer of such land that(a)

so requires it, and (b) the juc

debtor will have “sufficient
remaining to support himsel
those persons directly depende
him according to recognized
custom and the law of the
Territory.” (Section
288(c).
Section 287 T.T. Code.)
Since the Territory does not
an income tax, arrangements o1
concerning international double
tion have not been necessary.
Under Sections 1116 to 1I1i
the Trust Territory Code, any gro
association of persons may fo:
corporation by submitting the
posed articles of incorporation t«
High Commissioner, and if
proposed articles meet the req
ments specified under these (
sections, the High Commissioner

grant a charter. Corporations
companies which have been ir
porated in the Territory under
tinent sections of the Code are li.
in Appendix VII.
Credit unions incorporated in
Territory are listed in Appendix X

SECTION 2:
MOneY AND BANKIN
Since U.S. currency serves as legal

tender, no laws or regulations govern-

ing currency and exchange have been
needed other than U.S. laws governing
banking. Residents have access to
banking institutions in Guam, Hawaii,
and the U.S. mainland as well as to
branch banks within the Territory.
Kwajalein in the Marshalls, Koror in
Palau, and Kolonia in Ponape have
40

Bank

of

Hawaii

branches.

Tr

District and Saipan in the Maria
Islands District are served by Bank
America branch banks. The bran
banks make some loans to individu:

and private business firms.

In 1956, a revolving fund wz
established from funds made availab

by the U.S. Congress for loans |

Part VI—Economic Advancemet

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