DRAFT CSC, Title 24.  Land Management
 
 
APPENDIX A
 

Title 57
Real and Personal Property
(Trust Territory Code (1980))

CHAPTER 1
PERSONAL PROPERTY

Subchapter I:
Subchapter II:
Subchapter III:

Subchapter I
General Provisions

1.  Application of chapter.
3.  Obligations of creditor and debtor in exercise of rights.
4.  Unauthorized destruction, removal or use of property.
5.  Procedure if creditor fails to comply with chapter
6.  Waiver of provisions of chapter
7.  Rights of creditor subject to foreclosure only by procedures of chapter.

1.  Application of chapter.  This chapter shall apply to any agreement, regardless of its form, which is intended to give rights in personal property, including houses on land not owned individually or entirely by the party or parties purporting to give an interest in the house, as security for the performance of any obligation.  Such agreements include, among others, pledges, conditional sales agreements, chattel mortgages, and leases under which ownership of personal property is to pass upon completion of the terms of the lease. (Code 1966, 279(a); Code 1970, tit. 57, 1.)

          Source:  57 TTC 1, 1, modified.

2.  Definitions.

     (1)  "Debtor" as used in this chapter shall include any debtor, buyer, lessee, or other person having an equity in the property under an agreement subject to this chapter.

     (2)  "Creditor" as used in this chapter shall include any creditor, seller, lessor, or other person having rights in the property as security under an agreement subject to this chapter. (Code 1966, 279(b) and (c); Code 1970, tit. 57, 2.)

          Source:  57 TTC 1, 2, modified.

3.  Obligations of creditor and debtor in exercise of rights.  Both the debtor and the creditor have an obligation to exercise their rights in the property in good faith and with regard for the rights of the other.  Each must use reasonable care in the custody and preservation of the property while in his possession. (Code 1966, 279(d); Code 1970, tit. 57, 3.)

          Source:  57 TTC 1, 3, modified.

4.  Unauthorized destruction, removal or use of property.  Prior to completion of performance of all the terms of the agreement to be performed by the debtor, whoever maliciously or with intent to defraud shall injure, destroy or conceal the property, or remove it without the consent of the creditor from the district, if any, where the agreement provides that it is to be used, or shall sell, mortgage, or otherwise dispose of the property under claim of full ownership, shall be guilty of a misdemeanor and upon conviction thereof shall be imprisoned for a period of not more than six months, or fined not more than one hundred dollars, or both. (Code 1966, 279(e); Code 1970, tit. 57, 4.)

          Source:  57 TTC 1, 4, modified.

5.  Procedure if creditor fails to comply with chapter.  If the creditor fails to comply with this chapter, disposition of the property may be ordered or restrained in a civil action in court on such terms and conditions as the court deems best.  If the property has been taken or disposed of by the creditor other than in accordance with this chapter, the debtor may recover his actual damages, if any, and in no event less than one fourth of the sum of all payments which have been made under the agreement, with interest at six percent a year. (Code 1966, 279(F); Code 1970, tit. 57, 5.)

          Source:  57 TTC 1, 5, modified.

6.  Waiver of provisions of chapter.  No act or agreement of the debtor before or at the time of the making of the agreement, nor any provision or statement by the debtor in such agreement, shall constitute a valid waiver of the provisions of this chapter; except, that the agreement may stipulate that if the debtor is in default for twenty days or more, the creditor may take the property without notice. (Code 1966, 279(g); Code 1970, tit. 57, 6.)

          Source:  57 TTC 1, 6, modified.

7.  Rights of creditor subject to foreclosure only by procedures of chapter.  The rights of the debtor under an agreement subject to this section may only be foreclosed after default by one of the methods set forth in this chapter. (Code 1966, 279(h) (1); Code 1970, tit. 57, 7.)

          Source:  57 TTC 1, 7, modified.
 
 

Subchapter II
Nonjudicial Foreclosure

51.  Property in possession of debtor
51.  Property in possession of debtor.  If the property is in the possession of the debtor:

     (1)  If the agreement provides that the creditor may take the property if the debtor is in default for twenty days or more and the debtor is so in default, the creditor may take possession of the property without notice if this can be done without breach of the peace.  If the creditor does so, he shall retain the property for twenty days within the district where he took possession of it, during which period the debtor may redeem the property as provided below; thereafter, if the property has not been so redeemed, the creditor may hold the property as his own subject to the provisions of section 53 of this chapter.

     (2)  If the agreement does not contain the provision for taking without notice referred to in the preceding subsection, the creditor shall, not more than forty nor less than twenty days prior to the taking, cause written notice to be given to the debtor of the property on account of default of the debtor.  The notice shall state the default and the period at the end of which the property will be taken.  This notice may be given personally to the debtor or by leaving it at his usual place of abode or of business with some person not less than eighteen years of age and of sound mind then residing or employed there, and, if the person with whom the notice is left states he is unable to read it, by also orally explaining the substance of it to him, if practical, in a language understood by him, otherwise in a language generally understood in the locality.

     (3)  If after such notice the debtor does not perform the obligations in which he has made default before the day set in such notice for taking, the creditor may take possession of the property if this can be done without breach of the peace.

     (4)  Unless the property can be taken without a breach of the peace either under subsections (1) or (3) of this section, the foreclosure shall proceed thereafter only by a civil action in the court under the judicial foreclosure provisions of this chapter. Nothing herein shall be construed to authorize a violation of the criminal law.

     (5)  Nothing in this section shall affect the right of a creditor to proceed under sections 51 and 52, of title 8 of this Code simultaneously with action in accordance with this section nor shall anything herein limit the discretion of the trial division of the high court to order a sale authorized by section 52 of title 8 of this Code on such terms or notice, if any, as it deems best. (Code 1966, 279(h) (1)(A); Code 1970, tit. 57, 51.)

          Source:  57 TTC 1, 51, modified.

52.  Property in possession of creditor.  If the property is in the possession of the creditor:

     (1)  Not more than forty nor less than twenty days prior to foreclosing on the property, the creditor shall cause written notice to be given to the debtor of the creditor's intention to foreclose.  The notice shall state the default and the period at the end of which the property will be foreclosed.  This notice may be given in the manner provided in subsection (2), section 51 of this subchapter.

     (2)  If after such notice the debtor does not perform the obligations in which he has made default before the day set in such notice for foreclosure, the creditor may hold the property as his own subject to the provisions of section 53 of this subchapter. (Code 1966, 279(h)(1)(B); Code 1970, tit. 57, 52.)

          Source:  57 TTC 1, 52, modified.

53.  Procedures.

     (1)  If the debtor, at the time of the taking or of the foreclosure under this subchapter, has paid at least one half of the principal due under the agreement, the creditor shall sell the property at public auction in the district where it was at the time of the taking or foreclosure, such sale to be held not more than ninety days after the taking or foreclosure.  The creditor shall give to the debtor not less than ten days written notice of the sale in the manner provided in subsection (2), section 51 of this subchapter, which notice shall not be given until the expiration of the twenty days retention period provided for in subsection (1), section 51 of this subchapter if the taking was made under such subsection.  The creditor shall also give notice of the sale by posting in at least three conspicuous places within the district where the property is to be sold at least five days before the sale and shall make an honest attempt to obtain a fair value at the sale and, provided he does this, may himself bid for the property at the sale.

     (2)  The proceeds of the sale shall be applied:

     (a)  To the payment of the reasonable expenses thereof,

     (b)  To the payment of the reasonable expenses of taking, keeping and storing the property,

     (c)  To the satisfaction of the balance due under the agreement.

Any sum remaining after the satisfaction of such claims shall be paid to the debtor.  If the proceeds of the sale are not sufficient to defray the reasonable expenses thereof and also the reasonable expenses of taking, keeping and storing the property and the balance due under the agreement, the creditor may recover the deficiency from the debtor or anyone who has succeeded to the obligations of the debtor.

     (3)  If the debtor, at the time of the taking or of the foreclosure mentioned above, has not paid at least half of the principal due under the agreement, the creditor shall have the option of:

    (a)  Notifying the debtor in the manner provided in subsection (2), section 51 of this subchapter of his election to retain the property as his own without obligation to account to the debtor and the debtor shall then be discharged of all obligations under the agreement; or

     (b)  Selling the property in the manner provided in subsection (1) and applying the proceeds as provided in subsection (2) of this section, with the same right to recover any deficiency as therein provided.

     (4)  During the twenty days retention period provided for in subsection (1), section 51 of this subchapter and at any other time before the creditor has disposed of the property or before the debtor's obligation has been discharged under subsection (3) of this section, the debtor may redeem the property by tendering fulfillment of all obligations due under the agreement up to the date of the tender as well as all the expenses reasonably incurred by the creditor in taking, keeping and storing the property and in arranging for the sale, and upon so doing shall become entitled to take possession of the property and to continue in the performance of the agreement as if no default has occurred. Upon written demand given by the debtor in the manner provided for notice in subsection (2), section 51 of this subchapter, the creditor shall furnish to the debtor a written statement of the sum due under the agreement and the expenses of taking, keeping and storing and in arranging for the sale. For failure to furnish such a statement within a reasonable time after demand the creditor shall forfeit to the debtor five dollars and shall also be liable to him for all damages suffered because of such failure. (Code 1966, 279(h)(1)(C) to (F); Code 1970, tit. 57, 53.)

          Source:  57 TTC 1, 53, modified.
 
 

Subchapter III
Judicial Foreclosure

101.  Civil action for foreclosure authorized.  The creditor may bring a civil action for foreclosure in such manner as the court may order.  If the creditor starts foreclosure under the provisions of subchapter II of this chapter, he may abandon that at any point and proceed by a civil action.  After proper service on the defendant or defendants, the court may order foreclosure in such manner as it deems will best protect the rights of the parties. (Code 1966, 279(h)(2); Code 1970, tit. 57, 101.)

          Source:  57 TTC 1, 101, modified.
 
 
 

CHAPTER 2
LAND OWNERSHIP GENERALLY

201.  Restrictions upon ownership.  Only citizens of the Trust Territory or corporations wholly owned by citizens of the Trust Territory may hold title to land in the Trust Territory; provided, that nothing herein shall be construed to divest or impair the right, title, or interest of noncitizens or their heirs or devisees, in lands in the Trust Territory held by such persons prior to December 8, 1941, and which have not been vested in the alien property custodian by vesting order dated September 27, 1951, or, if vested, are released from the terms of said order by direction of the High Commissioner; provided further, that nothing herein shall be construed to prevent the government of the Trust Territory from holding title to lands in the Trust Territory; and provided further, that this section shall not apply to cooperative associations and credit unions duly organized and incorporated pursuant to the laws of the Trust Territory. (Code 1966, 900; Code 1970, tit. 57, 11101.)

          Source:  57 TTC 2, 201, modified.

          Cases:

             Disqualification of person from holding land rights.  Disqualification from holding title to land because of nationality is matter of which only government can take advantage. Osawa v. Ludwig, 3 TTR 594 (App. Div. 1966).
 
 
 

CHAPTER 3
LAND MEASUREMENT SYSTEM

251.  Metric system authorized; conversion tables.
252.  Markers; payment.
253.  Same; removal.

251.  Metric system authorized; conversion tables.  It shall be lawful throughout the Trust Territory to employ the metric system of measurement of lengths and areas, and no contract or dealing, or pleading in any court shall be deemed invalid or liable to objection because the measures expressed or referred to therein are measures of the metric system.  The tables in the following schedule shall be recognized in the construction of contracts and in all legal proceedings, and may lawfully be used for expressing measurements of length and area in the metric system:

Measures of Length


Metric denominations and values                    Equivalent in English System
Kilometer    . . . . . . . . .    1,000 meters               0.62137 mile, or 3,280 feet and
                                                                                  10 inches
Hectometer   . . . . . . . . . .   100 meters               328 feet and 1 inch
Dekameter    . . . . . . . . . . .   10 meters                393.7 inches
Meter . . . . . . . . . . . . . . . . . .    l meter                   39.37 inches
Decimeter . . . . . . . . .  1/10 of a meter                3.937 inches
Centimeter . . . . . . . . 1/100 of a meter                0.3937 inch
Millimeter  . . . . . .   1/1000 of a meter                 0.0394 inch

Measures of Area

Metric denominations and values                    Equivalent in English System
Hectare . . . . . . . .   10,000 square meters               2.471 acres
Are . . . . . . . . . . . . . .  100 square meters                 119.6 square yards
Centare . . . . . . . . . . . . .   1 square meter                 1.19 square yards or 1,550 square inches

          Source:  (Code 1966, 1020; Code 1970, tit. 57, 11151.) 57 TTC 3 251, modified.

252.  Markers; payment.  The district land title officer shall collect and deposit with the treasurer of the Trust Territory the reasonable cost of land markers furnished by the district land office. (Code 1966, 1021; Code 1970,tit. 57, 11152.)

          Source:  57 TTC 3, 252, modified.

253.  Same; removal.  Any person who wilfully and maliciously defaces, alters or removes any marker, monument or reference point which marks or determines the configuration or contour of any lot or tract of land, if erected by (1) a licensed surveyor, (2) a private individual pursuant to section 207 of title 67 of the Trust Territory Code, (3) agreement between adjacent landowners; provided, however, that this subsection shall apply only to persons who own no interest in any land to which such marker, monument, or reference point pertains, or (4) any agency of the government, shall upon conviction be imprisoned for a period of not more than one year, or fined not more than one hundred dollars, or both. (Code 1966, 1022; Code 1970, tit. 57, 11153; P.L. No. 5-29, 1.)

          Source:  57 TTC 3, 253, modified.
 
 

CHAPTER 4
RECORDING OF LAND TRANSFERS

301.  Copies; indexes.
302.  Effect of failure to record.

301.  Copies; indexes.  The clerk of courts in each district, upon payment of such fees, if any, as the High Commissioner may fix, shall make and keep in a permanent record a copy of all documents submitted to him for recording which relate to title to real estate in his district and shall comply with regulations issued by the high court, and any law applicable thereto.  He shall also keep an index or indexes of such records in such manner as the high court may direct. (Code 1966, 1023(a); Code 1970, tit. 57, 11201.)

          Source:  57 TTC 4, 301, modified.

302.  Effect of failure to record.  No transfer of or encumbrance upon title to real estate or any interest therein, other than a lease for a term not exceeding one year, shall be valid against any subsequent purchaser or mortgagee of the same real estate or interest, or any part thereof, in good faith for a valuable consideration without notice of such transfer or encumbrance, or against any person claiming under them, if the transfer to the subsequent purchaser or mortgagee is first duly recorded.  Nor shall any transfer of or encumbrance upon title to real estate or any interest therein, other than a lease for a term not exceeding one year, be valid as against any judgment affecting the title unless such transfer or encumbrance is duly recorded prior to the record of the notice of action in which the judgment is rendered. (Code 1966, 1023(b); Code 1970, tit. 57, 11202.)

          Source:  57 TTC 4, 301, modified.