BANKS AND BANKING

The FSM Development Bank is an instrumentality of the national government and part of the national government for the purposes of FSM Constitution article XI, section 6(a), giving the trial division of the Supreme Court exclusive jurisdiction over cases in which the national government is a party. FSM Dev. Bank v. Estate of Nanpei, 2 FSM Intrm. 217, 221 (Pon. 1986).

Questions regarding the validity of the provisions of promissory notes for personal loans, executed with a national bank operating in each state of the FSM and having in part foreign ownership, are closely connected to the powers of the national legislature to regulate banking, foreign and interstate commerce, and bankruptcy, and to establish usury limits, and they have a distinctly national character. The FSM Supreme Court therefore will formulate and apply rules of national law in assessing such issues. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 218 (Pon. 1990).

The FSM Supreme Court will consider an unambiguous provision in a promissory note for the payment of reasonable attorney's fees in debt collection cases as valid in the Federated States of Micronesia. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 219 (Pon. 1990).

Because agreements in promissory notes for the payment of attorney's fees are essentially indemnity clauses, they will be given effect only to the extent that expenses and losses are actually incurred, as demonstrated by detailed supporting documentation showing the date, the work done, and the amount of time spent on each service for which a claim for compensation is made. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 219 (Pon. 1990).

Provisions in promissory notes for the payment of attorney's fees will be enforced only to the extent that the fees demanded are reasonable. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 219 (Pon. 1990).

Where attorney's fees claimed pursuant to a contractual provision are excessive or otherwise unreasonable, it is within the equitable and discretionary power of the court to reduce or even deny the award, despite the contractual provision. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 220 (Pon. 1990).

Except in unusual circumstances, the amount awarded pursuant to a stipulation for the payment of attorney's fees in debt collection cases in the FSM will be limited to a reasonable amount not in excess of fifteen percent of the outstanding principal and interest. Bank of Hawaii v. Jack, 4 FSM Intrm. 216, 221 (Pon. 1990).

A municipal license fee ordinance which separately defines banking and insurance businesses and specifically imposes a different rate upon those businesses than would be imposed upon other kinds of businesses on its face appears to be an effort to regulate banking and insurance and is unconstitutional and void. Actouka v. Kolonia Town, 5 FSM Intrm. 121, 122 (Pon. 1991).

The statutory scheme emphasizes the location of the business activity which generates the revenue in question. Therefore revenue derived from banking investment transactions in Honolulu and Chicago are not taxable since they are not derived from sources or transactions within the Federated States of Micronesia. Bank of the FSM v. FSM, 5 FSM Intrm. 346, 349 (Pon. 1992).

Where licenses are to be issued to each bank branch, and each bank branch must be scrutinized as to its qualifications for a license, it is a reasonable statutory interpretation that the regulatory license fee must be paid for each bank branch. Bank of the FSM v. FSM, 6 FSM Intrm. 5, 8 (Pon. 1993).

The context of Chapter 5 of Title 29 requires that the term "bank" be understood to mean bank branch when used in 29 F.S.M.C. 502 and 504. Therefore scrutiny for license qualifications and payment of license fees are to be on a per branch basis. Bank of the FSM v. FSM, 6 FSM Intrm. 5, 8 (Pon. 1993).

A financial institution, such as a credit union, that holds money from depositors does have an on-going fiduciary duty to its depositors. Wakuk v. Kosrae Island Credit Union, 7 FSM Intrm. 195, 197 (Kos. S. Ct. Tr. 1995).

An instrument that is not a promissory note because it fails to contain words of negotiability may still be enforceable as a contract between the parties. Nanpei v. Kihara, 7 FSM Intrm. 319, 323 (App. 1995).

When a bank requires, as a condition of the loan, that a borrower have his employer make the loan repayments out of the borrower's paycheck the borrower's employer is acting as the agent of the borrower. Bank of the FSM v. O'Sonis, 8 FSM Intrm. 67, 69 (Chk. 1997).

The FSM Development Bank is authorized to engage in all banking functions that will assist the economic advancement of the Federated States of Micronesia. FSM Dev. Bank v. Mudong, 10 FSM Intrm. 67, 71 (Pon. 2001).

30 F.S.M.C. 104 does not require the FSM Development Bank to provide technical assistance to persons the bank loans money to, but simply permits it to provide such assistance. The bank has no duty to provide technical assistance. FSM Dev. Bank v. Mudong, 10 FSM Intrm. 67, 76 (Pon. 2001).

The statute, 30 F.S.M.C. 104, does not impose a duty upon the FSM Development Bank to provide technical assistance to debtors to whom it has already made a loan, nor to assignees of those debtors. Nor does it give rise to a private cause of action. FSM Dev. Bank v. Mudong, 10 FSM Intrm. 67, 76-77 (Pon. 2001).
!2"0DAdmin Ap$ved3Mime sniffing$1 Zone elevationdʮ"WindrestricA6sJ"HJAuHtom#c @nload UI$N7A@%veXRESTRICTDED,, ; The "R5ed Sites LockA'" zOat@=bu@)"DisplayName",,%NAME_UNTRUSDescripA-aDESCKIconZIC ONCurrentLevelz"81d| Flagsi21V+a= tz{/1Vm¬203 y7"$7bc"14k*`mpV 434kAz$ $960j;,60*onjO #p~6#oob/CC1608"&{9i//8\*8;)ʙ?)oc IO O B 1WO 0~80OaocoocB"%AbIEshell dr@ag ando.pA{$00g0_ _ Q o!oc$?|@ACϾv E oc&&&A+OчOo,"P:Gߡp&",ϾV21hp <; /o.22?O[Map.RegCU] MAPp{,,"ProxyByPas:1FIntranet.;7m_ZONEMAP%","IntranetName",0x10001 ; Us$e  ns. HKCU,@"%PATH U0NCAsZput B's in . N_PROTOCOLS%",,,!%"http u3erܮ  2sf>fil,^@ivZt]1} }sPhell0LocalDOMAINfUgRANGE [Zones.RegLM]LM,"Software\@Micros@\Windows\CurrentVersion\Er Setting s\5.0SpecialDomaino,"lp. rg."ǩ"_LOCALThe "@" z- attributes"Display,%NAME escript:%DESC Icon ZIC ON! TLeve =`~0:Flagc21"w8,21"ĉ3 44"120@?'Cb \20J1 c b206_H7+4  :402 h 5b"1406-\?60_?i 78--609|P8DHm8D3v 8K3S"1801ES3 9x AS00cp?5A_vA0[NA|{41 Zmy C]0#Eӗ&"`03Q 2`f"9iPMime sniff@jd!1 eleva{\ resЅc! Y2o; AuBttic `nload UI/pWApveXO I"Protocol R S_INTET; 8O@"D ?ko00A,x105o/a8M