• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Front Matter
 Index
 Transmittal memorandum
 The offices
 Project renovation
 Division of banks
 Cashier's report
 Division of corporations and trade...
 Legal publication division
 Division of insurance
 Notarial commissions
 Passport division
 Recorder of deeds (St. Thomas-St....
 Recorder of deeds (St. Croix)
 Office of the tax assessor
 Back Cover














Title: Annual report of the Lieutenant Governor of the United States Virgin Islands.
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Permanent Link: http://ufdc.ufl.edu/UF00003648/00001
 Material Information
Title: Annual report of the Lieutenant Governor of the United States Virgin Islands.
Physical Description: Serial
Creator: Virgin Islands of the United States. Office of the Lieutenant Governor.
Publisher: Office of the Lieutenant Governor,
Publication Date: 1980-1981
 Record Information
Bibliographic ID: UF00003648
Volume ID: VID00001
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Resource Identifier: aaa5016 - LTQF
11009138 - OCLC

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Title Page 1
        Title Page 2
    Front Matter
        Front Matter 1
        Front Matter 2
    Index
        Index 1
        Index 2
    Transmittal memorandum
        Page 1
        Page 2
        Page 3
        Page 4
    The offices
        Page 5
        Page 6
    Project renovation
        Page 7
        Page 8
        Page 9
    Division of banks
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Cashier's report
        Page 22
        Page 23
    Division of corporations and trade names
        Page 24
        Page 25
        Page 26
    Legal publication division
        Page 27
    Division of insurance
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
    Notarial commissions
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
    Passport division
        Page 44
        Page 45
    Recorder of deeds (St. Thomas-St. John)
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
    Recorder of deeds (St. Croix)
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
    Office of the tax assessor
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
    Back Cover
        Page 69
        Page 70
Full Text











ANNUAL REPORT
OF THE
LIEUTENANT GOVERNOR

OF THE
UNITED STATES VIRGIN ISLANDS


1980


1981


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'UNIVEIIITY of 'FLOPIDA


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ANNUAL REPORT

OF THE

LIEUTENANT GOVERNOR

OF THE

UNITED STATES VIRGIN ISLANDS

FISCAL YEAR 1980-1981


Henry A. Million
Lieutenant Governor


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SUPERVISORY STAFF MEMBERS
OFFICE OF THE LIEUTENANT GOVERNOR
FISCAL YEAR 1980-1981


Henry A. Million

James A. O'Bryan

Raphael Llanos

Esperanza L. Harrigan

Deenece Cromartie

Luz E. Rios

Marva L. George

Oswald 0. Schjang

Nydia L. Morris

June B. Querrard

Maysia 0. Roberts

Velisa B. Hansen

Verne R. Callwood

Ejnar Clendenen

Angel Christian


Lieutenant Governor

Special Aide (St. Thomas)

Special Aide (St. Croix)

Administrative Assistant

Secretary to the Lieutenant Governor

Administrative Officer II

District Recorder of Deeds (St. Thomas-St. John)

Recorder of Deeds (St. Croix)

Passport Officer

Senior Corporate Officer

Accountant

Administrative Asst. Div. of Banks & Insurance

Tax Assessor

Deputy Tax Assessor (Christiansted)

Deputy Tax Assessor (Frederiksted)
















INDEX







TRANSMITTAL MEMORANDUM Page 1

THE OFFICES Page 5

PROJECT RENOVATION Page 7

DIVISION OF BANKS Page 10

CASHIER'S REPORT Page 22

DIVISION OF CORPORATIONS & TRADE NAMES Page 24

LEGAL PUBLICATION DIVISION Page 27

DIVISION OF INSURANCE Page 28

NOTARIAL COMMISSIONS Page 39

PASSPORT DIVISION Page 44

RECORDER OF DEEDS (St. Thomas-St. John) Page 46

RECORDER OF DEEDS (St. Croix) Page 56

OFFICE OF THE TAX ASSESSOR Page 61








THE VIRGIN ISLANDS OF THE UNITED STATES
Office of the Lieutenant Governor
Charlotte Amalie, St. Thomas

February 28, 1983

MEMRANTWIM

To: Governor Juan Luis

From: Lieutenant Governor Henry A. Million

Re: 1981 Activities of Office


I am pleased to submit a condensed summary of the various activi-

ties of the Office of the Lieutenant Governor for inclusion in the

Governor's Report to the Secretary of the Interior.


OFFICE REVIEW

Personnel 65

Appropriation $1,740,337


During the fiscal year plans were developed and work commenced on

the long discussed renovation of the Lieutenant Governor's complex in

St. Thomas. The sum of Seventy-five thousand ($75,000) dollars was

included for this purpose in the 1981 Fiscal Budget, Act No. 4634. In

addition to the decision to have Public Works handle the renovation

process, came the decision to relocate several offices in order to

create an atmosphere more condusive to the work process.

The Offices of the Recorder of Deeds dually recorded deeds and

other legal instruments totalling eighteen thousand eight hundred

fifty-seven (18,857), a decline of fifteen (15) from the previous year.







Banks and other lending institutions, including local and Federal
Government agencies, issued one thousand six hundred and eighty-four

(1,684) mortgages totalling $98,328,211, declines of four hundred

fifty-four (454) and $8,731,789, respectively from the previous year.

The Tax Assessor's Office completed the biannual reassessment of

property values in the territory. This reassessment resulted in an

increase of one billion one hundred four million two hundred seventy-

five thousand eight hundred and forty ($1,104,275,840) dollars in 1980

to one billion eight hundred ninety million nine hundred four thousand

four hundred thirty-two ($1,890,904,432) dollars in 1981, an increase

of seven hundred eighty-six million six hundred twenty-eight thousand

five hundred ninety-two ($786,628,592) dollars. The corresponding taxes

went from eleven million nine hundred eighteen thousand one hundred

twenty-one ($11,918,121) dollars in 1980 to twenty-three million six

hundred thirty-six thousand fifty-four ($23,636,054) dollars in 1981, an

increase of eleven million seven hundred seventeen thousand nine hundred

thirty-three ($11,717,933) dollars.

The land appraisal staff plotted four hundred (400) new subdivi-

sions and recorded several hundred changes in ownership and land areas.

During the fiscal year there were twenty-two (22) cancellations

of notary commissions and seventy-six (76) commissions issued.

The Passport Division issued four thousand nine hundred twenty-one

(4,921) U.S. Passports this fiscal year, an increase of one thousand

four hundred twenty-nine (1,429) over the previous year. Assignment of

Act Numbers and distribution to appropriate agencies were made to one

hundred thirty-seven (137) legislative bills. Of that number, one
hundred thirteen (113) were approved, eleven (11) became law without

approval, seven (7) were vetoed, eight (8) were repassed over executive

veto, and five (5) were subjected to the Governor's line item veto

authority.







The Division of Insurance approved one thousand six hundred

thirty-three (1,633) policy forms. The volume of business reported by

the companies during the fiscal year amounted to thirty-nine million

three hundred four thousand three hundred forty-seven dollars and

eighty-one cents ($39,304,347.81), an increase of three million one

hundred forty-nine thousand nine hundred ninety-nine dollars and three

cents ($3,149,999.03), over the previous year. Premium taxes collected

were seven hundred eighty-seven thousand nine hundred thirty-five

dollars and nine cents ($787,935.09), an increase of sixty-four thousand

six hundred seventy-six dollars and seventy-four cents ($64,676.74).

Mr. Rudolph E. Krigger, Director of Banks and Insurance resigned

from his post in the middle of the fiscal year in order to take up full

time employment with the V.I. National Guard. One hundred seventy-one

(171) companies, of which fifteen (15) are new, were licensed during the

fiscal year. Three (3) companies changed their corporate names and two

(2) companies withdrew from the V.I.

The Banking Board granted permission for Banco Popular de Puerto

Rico to begin operations in the Virgin Islands. Banco Popular is a

Puerto Rico based corporation with one hundred ten (110) branches there

and several in operation on the mainland. A proposal for the opening of

a branch submitted by Bank of the Caribbean was turned down by the Bank-

ing Board during the same fiscal year. The Royal Bank of Canada closed

down operations in the Virgin Islands during this fiscal year, leaving

four (4) National Banks, three (3) Foreign Banks, one (1) Savings and

Loan Association, and three (3) Small Loan Associations.

Time and Saving Deposits of Individuals, Partnerships, and Corpora-

tions for this fiscal year amounted to five hundred twenty-nine million

six hundred sixty-seven thousand ($529,667,000) dollars, a decline of

five hundred fifty-one million three hundred ninety-four thousand









($551,394,000) dollars from the previous year. Loans for the fiscal

year amounted to three hundred eighty-nine million five hundred two

thousand ($389,502,000) dollars, a decline of eight hundred ninety-seven

million two hundred twenty thousand ($897,220,000) dollars from the

previous year. Total Assets marked a low of one billion twenty-six

million nine hundred sixty-three thousand ($1,026,963,000) dollars, a

decline of seven hundred twenty-two million four hundred ninety-seven

thousand ($772,497,000) dollars.

The Corporate and Trade Names Division registered seven hundred

fifty-seven (757) new trade names, a decline of eighty-three (83) from

the previous year. Certificates of Incorporation were issued to one

hundred thirty-two (132) foreign, three hundred twenty-one (321)

domestic, and forty-three (43) non-profit corporations.









THE OFFICES


The principal offices of the Lieutenant Governor are located at

No. 18 Kongens Gade, King's Quarter, located on Government Hill in down-

town Charlotte Amalie, St. Thomas.

The historic three-story structure, constructed of yellow brick, is

only one of six buildings of its type still existing on St. Thomas. The

building's novel design is characteristic of the late Baroque tradition

of northern European countries, reflecting the Dutch influence on the

early Danish settlers of the Virgin Islands.

The records of the District Recorder of Deeds first mentioned the

building when it was transferred from the Royal delainscourt which

handled the estate of the deceased free mulatto Saphira Anthony to

Elisabeth Van Still with Curator John Carl Harboe acting in her behalf

on November 17, 1812.

After several other transactions, the two adjoining buildings, were

combined on March 17, 1846, with the central structure. On April 30,

1877, Mr. William Charles Lamb sold the entire property to the Danish

Government for the sum of ten thousand dollars.

The property has since been used for government offices. With the

purchase of the Virgin Islands by the United States in 1917, the

property was turned over to the federal government and later transferred

to the territorial government with the passage and execution of Public

Law 93-435 in 1975.

In the early years various departments of the territorial govern-

ment were housed under its roof. However, with the massive expansion of


-5-









activities falling under the jurisdiction of the Lieutenant Governor,

unrelated agencies have moved out and the building is comprised of

divisions of the Office of the Lieutenant Governor.

On St. Croix, the administrative offices of the Lieutenant

Governor, as well as the Christiansted branch of the Tax Assessor's

Office are located on the third floor of the historic Alexander Hamilton

House, adjacent to Government House in downtown Christiansted.

The two hundred year old structure, which dates back to the early

days of the Danish West Indies, is where the first Treasurer of the

United States, Alexander Hamilton, was said to have worked during his

early days on St. Croix. It was destroyed by fire in 1967, and rebuilt

afterwards. Of the original structure, only the first floor remains.

The Recorder of Deeds for St. Croix is located within the Govern-

ment House complex. The premises they occupy are part of the addition

built by Adam Sobotker, a merchant and planter, as a private home in

1794-97. Major changes were made to the structure beginning in 1818;

the residence was purchased by Governor General Peter von Scholten and

added to the Government House complex. The seller of the house,

Commissary of War Johannes Sobotker, was to become Governor of St.

Thomas and St. John, and eventually Governor General of the Danish West

Indies.

The Frederiksted branch of the Tax Assessor's Office is located in

the Government Complex at Lagoon Street which was completed in October

1971.

On St. John, the Lieutenant Governor is represented by an employee

of the Tax Assessor's Office who is stationed at the Historic Battery

Complex in Cruz Bay.









PROJECT RENOVATION

During the fiscal year, plans were developed and carried out on

the long discussed renovation of the historic Kongens Gade complex of

the Lieutenant Governor in St. Thomas.

In recent years, the physical appearance of the building had

deteriorated considerably due to termite infestation and inadequate

attention. It became immediately apparent that a special appropriation

would be necessary since the Department of Public Works, having statu-

tory responsibility over all government buildings, did not have

sufficient funds to undertake the project. Consequently, an effort was

made to secure a special appropriation from the Legislature to undertake

this project. These efforts became a reality when $75,000.00 was

included for repairs to the building with the passage of the 1981 Fiscal

Budget, Act No. 4634.

However, before actual renovation work commenced, Public Works was

requested to submit estimates, and the Planning Office was required to

prepare a scope of work document due to the building's historic

significance. It was also necessary to fumigate the premises to

alleviate the long-standing termite problem. Efforts were also

completed to coat the ceilings with a tar-like substance to eliminate

a major leakage problem.

The project was further expanded when efforts to relocate the Tax

Assessor's Office to quarters outside the building succeeded in July.


The decision was then made to relocate several offices within the

building to take advantage of the space made available due to the Tax

Assessor's move.








Under the direction of the Special Aide, who was designated project

coordinator by the Lieutenant Governor, division heads met and drafted a

plan which would achieve the following objectives:

(1) The Division of Banks and Insurance would relocate from the

Courtyard's Annex to the Appraisal Section of the Tax Office

on the third floor.

(2) Accounting Division would relocate to the Administrative

Section of the Tax Office.

(3) The former Accounting Office would become a corporate file

room.

(4) The former corporate file room would become an office for

Corporate's division head.

(5) The Passport Office would relocate to the annex offices,

formerly housing the Division of Banks and Insurance.

(6) The old Passport Office would become a reception area for

the Lieutenant Governor.

In the process of achieving these goals, it was further decided

that many long-standing problems of the offices would be resolved during

the course of the project.

Because private contractors submitted estimates far exceeding the

available funds, the decision was made to attempt to have Public Works

undertake the project. Mr. Roebuck, Construction Division Director, of

the Department of Public Works, inspected the offices and agreed to

allow his division to undertake the project. It was decided that rather

than transfer the repair funds appropriation into the Construction Divi-

sion's account, the office would make the necessary arrangements and

handle the purchases to facilitate the swift completion of the project.









Work on the project required considerable employee effort to

continue the usual work flow while suffering numerous inconveniences and

hardships in the course of the project. However, steady corporation,

on the part of all employees, made it possible to complete a major

portion of the intended work, with the minimum of inconvenience to the

public and little interruption in work production.

It is expected that work will be completed during the early part of

Fiscal Year 1982.


-9-









DIVISION OF BANKS


The Banking Board is the governing body of the Division of Banks and has its

functions and duties stipulated by Title 9 of the Virgin Islands Code. The member-

ship consists of two government officials, the Lieutenant Governor and the Commissioner

of Finance who are ex-officio Chairman and Secretary, respectively, and four persons

from the private sector.

The Board has a broad scope of authority which includes promulgation of rules

and regulations, formulation of policy decisions, regulation of foreign and domestic

banks and licensing of small loan associations and pawnbrokers. National Banks are

precluded from this authority since they are regulated by Federal Law.

During the fiscal year the number of banking institutions on all three islands

were as follows:

Four (4) National Banks, three (3) Foreign Banks, One (1) Savings and Loan

Association, and three (3) Small Loan Associations. The banks in our jurisdiction

are subsidiaries of large multi-national banks, and they operate a total of thirty

(30) branches. The small Loan Associations have seven (7) branches to service clients.

Island Finance phased out one of its branches (Golden Rock, St. Croix) during the

closing weeks of the fiscal year.

Despite the number of branches there were complaints from consumers that were

not being properly serviced, especially in the areas of mortgage financing and

veteran loans and that the banks were not competitive.


-10-









During this fiscal year Royal Bank of Canada, one of the foreign

banks, informed the Board of its intention to discontinue operations in

the U.S. Virgin Islands. This bank began operations approximately ten

years ago and operated solely on St. Croix. However, it turned out to

be an unprofitable venture. Apparently, its original location being in

an area where activities were minimal, rapid changes in management along

with several ill-made construction loans in the earlier years were

factors which contributed to its lack of success. In recent years the

bank moved to new quarters in the business section of downtown

Christiansted, but this decision may have been made too late since the

St. Croix economy was experiencing a decline.

An attempt was made to have Chase Manhattan Bank take over their

loans and deposits when they first decided to close the branch; however,

the transaction was never finalized because it did not receive the

sanction of the Federal Deposit Insurance Corporation. In the absence

of a workable solution, the bank authorities decided to serve notice on

the Board. The public was also notified by way of newspaper public

notice. The Assistant District Manager, Mr. Keppie, assured the Board's

Chairman that their existing clientele were being given their utmost

attention to facilitate them in obtaining alternate banking service with

the least inconvenience.

The bank moved into smaller quarters on the second floor at Church

Street for the purpose of phasing out its operations, and the permanent


-11-









physical closing will be accomplished well within the beginning of the

next fiscal year.

The Banking Board received application from Banco Popular de

Puerto Rico, requesting approval to operate branches on St. Thomas and

St. Croix. It seemed a timely filing since it came in the wake of Royal

Bank of Canada's decision to withdraw from the territory. Banco Popular

expressed the desire to utilize their office quarters. The assumption

of the present personnel of the Royal Bank and its portfolio was specu-

lated, however not confirmed by either side at the time of the hearings.

The Chairman, in an effort to get public sentiments on the new

applicant, held a public hearing on both St. Thomas and St. Croix.

This was the first time hearings of this nature were held on a bank

application presented to the Board.

At the hearings the President of Banco Popular de Puerto Rico,

Mr. Ledesma, appeared to give testimony and answer whatever questions

the public had concerning his bank's intention for the Virgin Islands

operations. Questions were raised regarding employment and training

of native Virgin Islanders to fill key positions in the bank, and also

the bank's policy in making loans available to small business owners

and/or farmers. Mr. Ledesma pointed out that banking, especially in

the loan area, requires a unique person and that type of person is not

developed or trained overnight. However, he did state that Virgin

Islanders will be considered for employment and that training will be

provided by the bank to upgrade employees. He stressed that whenever

his bank opens a branch in any community, its commitment is to become

an integral part of that group.

If there were any adverse feelings towards the applicant, they


-12-









were dispelled by the close of the meeting due to the adept handling

of the question and answer period by Mr. Ledesma.

Several private citizens appeared at the hearing and spoke

favorably for the bank and the services they felt it could render,

especially on St. Croix. The Board, through this medium, was provided

with insight of the public's feelings regarding the new applicant, and

they were also afforded the opportunity to satisfy their own curiosities

and misgivings, if any existed. The Members were able to elicit firm

commitments from the President that the same type of individualized

service offered in Puerto Rico and other areas in which they operate

will be granted to clients here in the Virgin Islands.

At the conclusion of the Public Hearing on St. Thomas, the Board

met in Executive Session and voted unanimously to grant approval to

Banco Popular de Puerto Rico, to operate a banking business in the U.S.

Virgin Islands. This is a Puerto Rico based corporation with 110

branches in operation there and several on the mainland, two of which

are situated in New York City.

A formal Permit was issued, granting the bank approval to engage in

the banking business. At a later date, upon payment of the required

fee, the official license was granted. The first branch was opened on

St. Croix on August 17, 1981, at No. 17 Church Street, the former

location of Royal Bank of Canada. Presently, they have sixteen (16)

employees, eight (8) of whom are former employees of the Royal Bank of

Canada. Of the total employees, five (5) are native crucians. The

Board also received application from Bank of the Caribbean. This was

a proposal for the opening of a new domestic bank. The major

stockholder in this enterprise is one Dr. Leonard Bloom, a practicing


-13-









Orthodontist residing in California. The other people involved are

Mr. Gustave Danielson and Mr. Henry Wheatley of St. Thomas, Attorney

Earl Glick of Chicago, Illinois, and Mr. Carey D'Ovino, formerly a

resident of Atlanta, but presently associated with Mr. Danielson here

on St. Thomas.

Mr. Danielson appeared at the Public Hearing to make the presenta-

tion. He was questioned at length by the Board Members and members of

the public present at the hearing regarding plans of the corporation

to start an operation at a time when banks of longstanding in the area

claim business is on a decline. Questions were also directed towards

services to be rendered; financial backing; expertise in operating such

an entity; and, of most particular, the area involving a Trust Depart-

ment. The Board was somewhat apprehensive to Mr. Danielson's insistence

that the corporation will be operating a full Trust Department when

those persons with available resources to utilize such a facility are at

a minimum in the Virgin Islands. They were also concerned with the fact

that none of the principals in this corporation possess the knowledge

and expertise to manage a banking institution.

After hearing from Mr. Danielson, the Board met in Executive

Session, and the consensus was that this entity would not truly be pro-

viding full banking services. The members present at the Executive

Session voted to disapprove the application of Bank of the Caribbean.

The Applicant was so advised of the Board's action and requested

that the Board reconsider its position. They requested also that Bank

of the Caribbean be given a second opportunity to present fully their

future plans, as they were of the opinion that the Board was mistaken as

to the full potential of the corporation, as well as their commitment to


-14-








perform full banking services in the Virgin Islands.

The members again met on July 23, 1981, to re-examine the applica-

tion in light of the new facts to be submitted by Mr. Danielson, who

again appeared before the Board. Mr. Danielson felt the need to clarify

that Bank of the Caribbean had no intentions of operating offshore

branches in the Cayman Islands or anywhere else, but to provide the

Virgin Islands community, in addition to regular banking service, with

a complete functional trust department which is presently nonexistent.

The Board disagreed with the point advanced by Mr. Danielson that

trust activities were nonexistent, since the service is presently

offered, although on a limited scale.

After deliberating, the Board again voted down the application

since it felt no new evidence or supporting documentation had been fur-

nished that would influence a change of their previous action. The

final decision was conveyed to Mr. Danielson in an official document

dated September 15, 1981, signed on behalf of the Board by its Chairman,

and the Assistant Attorney General Bethel. It cited as the basic

reasoning for the denial, the following:

"...the geographical distance of the prime principals from

the Virgin Islands in assuring the proper functioning of the

bank as required by Title 9, Virgin Islands Code, Section

31 (b) (2), and

...whether the public needs justified the application of a

start-up enterprise such as the Bank of the Caribbean..."

In the closing weeks of the fiscal year, the Board received an

application for a Small Loan Association from Virgin Islands Financ-

ing Company. This is a wholly owned subsidiary of Tri-Island Develop-


-15-









ment Corporation. The objective of the company is to operate branches

on St. Thomas and St. Croix. Notice of the applicant's filing was

served on other small loan associations presently operating in the

islands, and comments from them were solicited.

Due to the late receipt of the application and the need for other

pertinent information, hearings will be scheduled in the new fiscal

year.

At mid-point last fiscal year, because of the passage of Public Law

96-221 by the United States Congress, the Usury Laws of the Virgin

Islands were temporarily preempted. The theory advanced was deregula-

tion of rates charged by monetary institutions to induce competition

among them so that money would be made available for mortgages. The

Federal Reserve kept a tight rein on the market and as a result, lending

was minimal. Many of the institutions expressed concern over the cost

of money from the Federal Reserve against the low yield of their

mortgage portfolios. The general consensus among lending institutions

was that a more innovative program will have to be introduced to replace

the old method of handling. For example, adjustable mortgages or some

alternate plan whereby mortgages may be renegotiated prior to maturity

of the loan.

On March 18, 1981, the Fourteenth Legislature passed a new Usury

Law which was approved by the Governor on April 1, 1981 (Act No. 4537).

It provided for maximum rates to be charged by lending institutions in

the Virgin Islands. The law will expire on March 31, 1982. The basic

difference in this and prior law is the increase of the allowable

percentage point from 1 to 1 1/2 on priority mortgages. On first pri-

ority mortgage loans on real estate where the loan amount is $100,000 or


-16-










less, the maximum rate is set at a base of 9 1/2 percent or not more

than 1 1/2 percent greater than the New York Federal Reserve Discount

Rate applicable on the date the borrower signs a letter of commitment,

or whichever is greater. In cases where the amount loaned exceeds 70

percent of the purchase price, 1/4 or 1 percent may be added; and when

the term of the loan exceeds 20 years, an additional 1/4 of 1 percent is

added to the total rate charged. Surcharges and fees or any other form

of penalties for prepayment of all part of the loan balance are

prohibited.

During this fiscal year five hundred ten (510) priority mortgages

were issued by lending institutions totaling $34,267,403.55 as follows:

Period No. of Loans Totals

4th Quarter, 1980 147 $ 9,526,425.00

1st Quarter, 1981 113 7,610,036.55

2nd Quarter, 1981 109 6,821,867.00

3rd Quarter, 1981 141 10,309,075.00

The rates on mortgages fluctuated from 10 1/2 percent to an all

time high of 18 percent by the end of the fiscal period. Terms varied

from 1 year to 30 years. Because of the high interest rates mortgages

dropped off considerably, and this year's figure fell approximately 91

percent below the dollar amount reported last fiscal year. The number

of loans made during this period showed a difference of one hundred

thirty-seven (137) from loans made within the same twelve-month period

last year. Added to the already acute situation was the fact that homes

were being placed on the market at exorbitant prices.


-17-








Small consumer loans, set by law at a maximum of $1,500, were

made by three licensed small loan companies during the fiscal year

as indicated below:

Period No. of Loans Amount

4th Quarter, 1980 3,097 $ 4,289,947.00

1st Quarter, 1981 1,385 1,807,735.00

2nd Quarter, 1981 1,701 2,264,701.00

3rd Quarter, 1981 1,583 2,021,632.00
7,766 $10,383,655.00

Although the overall total number of loans made this fiscal year

was 2,668 less than last year, the total dollar amount exceeded that

which was reported last year by more than 100 percent. A consolidated

Balance Sheet of all three Small Loan Companies, as of December 31, 1980

follows:


-18-









CONSOLIDATED BALANCE SHEET OF ALL
SMALL LOAN ASSOCIATIONS FOR THE
U.S. VIRGIN ISLANDS AS OF
DECEMBER, 1980


ASSETS


$ 80,738


FINANCE RECEIVABLES

Less Unearned Finance Charges


Less Reserve for Credit
Losses


$ 13,112,325

1,956,135

$ 11,156,190

219,921


10,936,269


87,096


FIXED ASSETS, at cost less accumulated
depreciation and amortization


OTHER ASSETS
TOTAL ASSETS


51,036

$ 11,155,139


LIABILITIES AND SHAREHOLDER'S EQUITY


ACCOUNTS PAYABLE


DUE TO FINANCE COMPANIES

OTHER LIABILITIES


$ 3,859,408


7,070,346

171,860


RETAINED EARNINGS


TOTAL LIABILITIES & SHAREHOLDER'S EQUITY


53,525

$ 11,155l139


-19-


CASH














GOVERNMENT OF THE VIRGIN ISLA::DS, DIVTSION OF BANKING
ST. TIO!;-AS, VIIRGIN ISI.ANS
CONSOLIDATED REPOrT OF CO'NDrTTON
AI.T. BANKS; To Tqli VIIRGrIN VILA:NDSf


ASSETS
Cash & 3De from Banks
U.S. Treasury Securities
Obligations of Other U.S. Gov't. Agencies & Corp.
Obligations of State and Political Subdivisions
Other Securities
Corporate Stock
Federal Funds Sold & Securities Purchased under
Agreement to Resell
Reserve for Possible Loan Losses
Loans
Bank Premises, Furn. & Fixt. & Other Assets
Real Estate Owned Other thnn Bank Prriises
invest.mnts in Subsidiaries & Associated Co.
Customer's Liability on Acceptances Outstanding
Other Assets
TOTAL ASSETS
LIABILITIES
Demand Deposits of Individuals, Partnerships & Corp.
Time and Savings Deposits of Individuals, Partner-
ships & Corp.
Deposits of U. S. Government
Deposits of State and Political Subdivisions
Deposits of Foreign Gov't & Official Institutions
Deposits of Commercial Banks
Certified and Officers Checks, etc.
Total Demand Deposits
Total Time and Savings Deposits
Federal Funds Purchased & Securities Sold under
Agreement to Repurchase
Other Liabilities for Borrowed Money
Mortgage Indebtedness
Acceptance Executed & Outstanding
Cther Liabilities
TOTAL LI;ABIL:TIES
CAPITAL ACCOUNTS
Preferred Stock Total Par Value
Co;onr Stock Total Par Value
S surplus
Undivided Profits
Piscrves for Contingencies and Other Capital Reserves
Total Capital Accounts
TOTAL LIABILITIES, AnD CAPITAL ACCOUNTS


December 31 1_80
$ 152,914,000.00
-0-
-0-
27,283,000.00
2,500,000.00
41,000.00
-0-
339,000.001
389,502,000.00
5,577,000.00
44,400,000.00
710,000.00
403,842,000.00
$ 1,026,963,000.00

$ 100,660,000.00
529,667,000.00
1,171,000.00
272,924,000.00
-0-
60,535,000.00
11,792,000.00
137,915,000 -.0-
| 838:834,000. 0
-0-
-0-
140,000.00
710,000.00
49,364,000
$ 1,026,963,000.00

$ -0-
-0-
-0-
-0-
-0-
-0-

$ 1,026,963,000.00


eccombcr 31, 1979
$ 129,004,000.00
12,500,000.00
37,100,000.00
21,611,000.00
2,750,000.00
8,623,000.00
-0-
=1 ,880,000.00
1,286,722,000.00
14,59 ,000.0
oo888:88

6,793,000.00
917,000.00
221,587,000.00
$1,749,460,000.00

$ 93,733,000.00
1,081,061,000.00
8,265,000.00
173,820,000.00
-0-
46,717,000.00
9',168,000.00


53,642,000.00
110,575,000.00
22,100,000.00
427,000.00
113,610,000.00
$1,713,118,000.00

$ -0-
-0-
-0-
11,961,000.00
24,381,000.00
I J-36,342,000.UDFI

$1 ,749,460,000.00


DPcrk=er31, 1,978
$ 98,321,000.00
14,500,000.00
34,661,000.00
8,500,000.00
2 506,000.00
6,639,000.00
-0-
S661,000.00 ]
1,032,869,000.00
4,06:888:,000.0088
16,352 000.00
12,497,000.00
653,000.00
199,682,000.00
$ 1,441,243,000.00

$ 80,940,000.00
795,446,000.00
10,553,000.00
147,975,000.00
-0-
122,696,000.00
6,820,000.00
Wo06:8?:8088 :E
-0-
127,310,000.00
5,582,000.00
11,475,000.00
96,362,000.00
$ 1,405,159,000.00

$ -0-
-0-
-0-
14,551,000.00
21,533,000.00
| 36,084,000.U--]
$ 1,441,243,000.00









Total Assets as shown in the consolidated figures for the banks

marked a low of $1,026,963,000, which is a decrease of $722,497,000,

down 41% from December 31, 1979 reported totals. Total Liabilities

decreased by 40% in 1980, as compared to a 21% increase in 1979.

Loans decreased in 1980 by 70%, a difference of $897,220,000.

Demand Deposits increased by 7%, a difference of $6,927,000 over 1979,

while Time and Savings Deposits showed a decrease of $551,394,000, down

51%.

Grand Total for deposits had an overall decrease of $436,015,000,

down 31% for Calendar Year 1980.


COMPARATIVE CHART COLLECTION ACTIVITIES
DIVISION OF BANKS



FY-81 FY-80 FY-79

Annual License Fee Foreign Banks $3,000 $3,000 $3,000

Annual License Fee State 1,000 -0- -0-
Chartered Branch Bank

Filing Fee Renewal Small Loan Co. 1,600 1,600 1,200

Filing Fee Original Small Loan Co. 400 400 400

Change of Resident Agent 25 25 -0-

Sale of Booklet -0- 7 -0-

Copy of Documents 1 -0- -0-
$6,026 $5,032 $4,600


-21-









CASHIER'S REPORT




MEMORANDUM



TO: Lieutenant Governor

FROM: Cashier

RE: Summary of 1981 Collections and Deposits


I am pleased to transmit herewith a listing of Total Summary

Collections and Deposits for Fiscal Year October 1, 1980 to September 30,

1981, for the District of St. Thomas-St. John and St. Croix General Fund

and Special Fund, together with a comparative analysis for Fiscal Year

July 1, 1979 to September 30, 1981.

Grand total combined collections under the General Fund Bank #1 for

the Fiscal Year October 1, 1980 to September 30, 1981, for the District

of St. Thomas-St. John and St. Croix amounted to $1,765,580.16. Please

note a total increase of $72,709.16 over last fiscal year.

Similarly, a combined collection deposited in Special Fund Bank #2,

for Fiscal Year October 1, 1980, to September 30, 1981, was $15,445.32

which reflects an increase of $2,476.32 compared to Fiscal Year 1980-1981.



Clarice Joseph
Collector 22


-22-








OVERALL GRAND TOTAL


COLLECTIONS

COMPARATIVE ANALYSIS FOR FISCAL YEARS JULY 1,


1979 to SEPTEMBER 30, 1981


CODE NAMES


REVISED CODES


PREIIUMl TAX

SALE OF REVENUE STAMPS

HRANCIIISE TAX

INSURANCE LICENSES

BANK FEES

SERVICE OF PIOCESS

PASSPORT FEES

COURT FEES

NOTARY PUBLIC COI ISSIONS

INSURANCE FEES

CORPORATE FEES & MISCELLA\IDYJS

TRADE MARKS

PENALTIES on late Franchise Ta.x

RECORDING FEES

AFFIDAVITS

PIK)TO COPIES


TOTAL COLLECTIONS


$ 1,688,859.00

24,684.00


7/1/79 -
9/30/79

658,105.00

419.819.00

247,619.00

13,017.00

4,600.00

207.00

59,594.00

4.00

3,990.000

7,858.00

46,559.00

1,358.00

14,449.00

205,123.00

45.00

6,512.00


+


64,663.09



1,267.18

6,998.00

3,025.00



20,969.00



440.00


12,334.28


FY-1980


723,272.00

417,560.00

228,455.00

13,857.00

3,000.00

157.00

47,269.00

-0-

2,635.00

7,270.00

46,503.00

870.00

16,121.00

179,923.00

69.00

5,910.00

1,692.871.00

12,969.00


FY-1981


787,935.09

405,225.72

229,722.18

20,855.00

6,025.00

127.00

68,238.00

-0-

3,075.00

2,871.50

37,884.40

755.15

14,452.46

182,727.86

70.00

5,615.80


30.00


4,398.50

8,618.60

114.85

1,668.54


2,804.86

1.00


294.20


1,765,580.16

15,445.32


72.709.16

2,476.32


PUBLICATIONS Sale of Bcoks 832









DIVISION OF CORPORATIONS AND TRADE NAMES


The legal framework of corporate structure as well as trade names,

and their practice in the Virgin Islands falls under the jurisdiction and

guidance of the Lieutenant Governor.

Governed by the provisions of Title 13, which sets forth corporate

laws, and by Title 11, which deals with Trade Names businessmen as well

as government officials, industrialists and interested members of the

public, are frequently researching the available resources.

For some time the administration has fought for means of expanding

the office space to accommodate more staff as well as equipment in keeping

with the growing number of businesses. To accomplish this end, the divi-

sion acquired a vacant room adjacent to the previous site, with the

relocation of the Tax Assessor's Office. In addition, we also received

three new typewriters, two desks, four secretarial chairs and four file

cabinets. A stamp-in-clock was also purchased. The division has employed

two new members, one permanent and one on a temporary basis. A second

permanent position was created for the section; however, we were unable

to recruit a suitable person for the job.

In hopes of fulfilling this goal, we are requesting the Governor as

well as the Legislature to reestablish the position in the budget. Truly,

we are in need of someone to work with the provisions of Section 371, 373

and 531 of Title 13, Virgin Islands Code. This person, with some knowledge

of accounting, may greatly assist us in enforcing proper filings of annual

reports, financial statements and franchise taxes. They would also keep

abreast of notifying delinquent corporations of their status with the

Government, thus encouraging the income of revenues.


-24-









To carefully monitor the activities of businesses as well as

assist the public with technical matters, legal aid is required. While

we do not have the need for a full time attorney, we anticipate that if

future legal counsel is brought in for other divisions of the Lieutenant

Governor's Office, services would be rendered to this division. In the

meantime, we continue to depend on assistance from the Attorney General's

Office.

One of the division's goals is to have a revision of the annual

report and the franchise tax report providing one date for the required

filing, thereby reducing the burden of the taxpayer as well as simpli-

fying the matter. This, of course, requires amended legislation and

careful consideration. This is not the only need requiring legislation.

There are other areas for revision, filling present gaps in the law

and still others to clarify certain laws.

For the purpose of establishing a more efficient account of revenues,

efforts were devoted to a daily basis of checking and balancing with the

cashier, followed by monthly reports.

During the month of June we were happy to attend a Basic Supervisor

Seminar for one week, at the College of the Virgin Islands. This proved

beneficial and refreshing, especially in improving the working relation-

ship of the office. We are looking forward to having more of these

programs wherein all employees may participate in enjoying the upbuilding

rewards.

In reviewing the 1980 Fiscal Year, we find a decrease in the

registration of Virgin Islands Corporations and an increase in foreign

corporations. Trade Names showed a decrease. For further statistics,

we present the following chart:


-25-







COMPARATIVE CHART ON CORPORATE ACTIVITIES


Oct. 1, 1979 to Sept. 30, 1980
ITEMS PROCESSED Foreign Domestic Non-Profit


Oct. 1, 1980 to Sept. 30, 1981
Foreign Domestic Non-Profit


Certificates of Incorporation

Certificates of Amendments

Certificates of Merger Agreement

Dissolutions

Revocations of Authority

Withdrawls

Stockholders Consent of Dissolution

Surrender of Corporate Rights

Trade Names


132

2


343


757


FEES COLLECTED


FILING FEES

Corporations and Trade Names

Franchise Taxes & Penalties

Affidavits


$ 45,950.51

239,222.79


$ 37,884.40

244,174.64

70.00







LEGAL PUBLICATION DIVISION

The Publication Division is responsible for the storage, sale and

reordering of all legal publications. Legal documentation received

from Legislative, Judicial, and Executive proceedings are sent to the

Equity Printing Company, which is the publishing company contracted to

print these materials into books, pamphlets and slip laws. These

publications are then returned to the Lieutenant Governor's Office for

sale, through the Publication Division.

Revenues totaling $15,445.32 were collected from publications sold

in Fiscal Year 1981. Virgin Islands Code books and supplements have

been, in the past, and remain in the greatest demand.

A consistent reordering policy is needed at this time, especially

for V.I. Code books. As previously indicated in Monthly reports, there

is a need to reorder Volumes I, IA, 2, 2A, 4, 5 and 5A. Also, the

Labor, Election, Corporation and Zoning Laws pamphlets require revision.

Additional space has become a reality with the removal of a large

number of outdated and overstocked publications. These publications are

in the process of being transferred to microfilm. The microfilm machine,

formerly in the Recorder of Deeds office, has been placed in the Publi-

cation Division. The employee responsible for microfilming also gives

assistance in the Publication Division.

For greater security, new doors and locks were installed.

Goals for next fiscal year include the transferring of all legal

publications from barge "Miss Opportunity" to the Lieutenant Governor's

Office. A large percent of these publications that are overstocked will

be made available to the public at lower rates. Plans are being made to

obtain a micro-computer to assist with inventory and record keeping.

Peak sale months coincide with the arrival of supplenients to the

V.I. Code from Equity Publishing Company.

-27-







-DIVISION OF INSURANCE

The responsibility for regulation of the Insurance Industry in

the Virgin Islands is placed in the Division of Insurance, headed by

the Lieutenant Governor, ex-officio Commissioner of Insurance.

Authorization for the Division is found in Title 22 of the Virgin

Islands Code, and the basic objective of the Law is the protection of

the public from illegal or fraudulent acts of companies and their repre-

sentatives.

The Commissioner has the authority to formulate and implement rules

and regulations which will enhance and define statutory requirements to

insure financial stability in companies, thus stimulating and strength-

ening public confidence in the industry as a whole.

The Division is principally involved in the issuance of licenses to

companies and individuals that express a desire to engage in the insur-

ance business on all three islands -- St. Thomas, St. John and

St. Croix. It is also engaged in approval or disapproval of company

policy forms, and the investigation of consumer complaints. The staff

also administers examinations to individuals seeking to become licensed

to insure they possess sufficient basic knowledge of the product they

will be offering for sale as well as fundamentals of the provisions of

the Insurance Code.

In the middle of the fiscal year, Mr. Rudolph E. Krigger, Director

of Banks and Insurance, resigned his post to take up full-time employ-

ment with the Virgin Islands National Guard. At the close of the year

his position remained vacant.

Mrs. Janet R. Humphrey, one of our tenure employees, passed away

after a brief illness, during this fiscal year. She had been employed

in the office of the Lieutenant Governor for the past 18 years, spending

10 of those years in the Division of Banks and Insurance.


-28-








An in-house promotion was effected and Miss Lillian Garfield, who

has been with the Division since 1972, was chosen to fill the vacancy

created.

Miss Wynn Canton, who was employed as a substitute clerk for

several months, was given a permanent appointment as Complaint Clerk.

The Division Staff consists of:

1 Administrative Assistant

1 Administrative Officer

1 Complaint Clerk

1 Assistant Examiner (Shared with Banking)

Despite the size, the staff maintains the flow of office activities

especially during the period from October through April when license

renewals, premium tax and other required filings and reports become due.

Close contact is maintained with the National Association of Insurance

Commissioners which renders oversight assistance by providing early

warning financial status reports on companies licensed in our juris-

diction. In the absence of our own examination team, these reports

provide much needed information to our agency.

Seventy-six complaints were filed with the office and were followed

through by staff members. Sixty-seven of these were resolved by the end

of the fiscal period; two remained unresolved; and seven were withdrawn.

Four of the claimants who withdrew advised this office they would pursue

the matter further with the assistance of legal counsel.

Many complaints involved a length of time to settle. However, the

problem that surfaced most frequently was disagreement between adjuster

and claimant as to what constituted a fair settlement, especially when

it involved repairs and replacement of parts in damaged vehicles. There were


-29-








initial disagreements over the estimates provided. The adjuster con-

sidered them excessive and refused to settle or present lower figures

based on his own knowledge or those prepared by another repair shop, and

made unsubstantiated charges of price-fixing among friends. The

claimants felt this was an infringement on their right of choice. They

also felt that damaged parts could not be replaced for the extremely low

price quoted by the adjuster. The Division's personnel are frequently

caught in the middle of two forces with no set provisions or rulings by

which a determination can be made, and our efforts are purely

discretionary. To equip the office with some basic tool, a subscription

was taken out for the "Red Book" which provides full replacement values

of used vehicles by make, year and model. It has proven helpful in

determining the true value of a claimant's vehicle when considered a

"total loss". By having this at our disposal we were.able to assist

claimants in getting the best possible offer on replacement claims.

What may prove to be of greater aid would be some exposure to the basic

principle of adjustment as applied by the adjusters.

Within this fiscal year rules and regulations entitled "Unfair

Claims Settlement Practices" were drawn up and forwarded to the Office

of the Attorney General for review prior to official publication and

adoption. With the adoption of these rules and regulations, time limits

will be set in which claims should be investigated and settled; and it

defines responsibilities of the parties involved which should narrow

considerably those areas of disagreement which now.exist.

Licenses are issued and renewed on a calendar year basis. One

hundred seventy-one companies including two non-profit corporations were

licensed during the fiscal year. Of the total amount, fifteen were new

admissions. They are as follows:


-30-








1. American Heritage Life Insurance Company

2. American Travellers Life Insurance Company

3. American Variable Annuity Life Assurance Company

4. Bankers National Life Insurance Company

5. First General Insurance Company

6. First Variable Life Insurance Company

7. Ideal Mutual Insurance Company

8. INA Underwriters Insurance Company

9. Indemnity Insurance Corporation of North America

10. Investors Life Insurance Company of North America

11. Inter-State Assurance Company

12. ITT Lyndon Life Insurance Company

13. Life and Health Insurance Company of America

14. Midland Insurance Comapny

15. Navajo Life Insurance Company

The companies listed below filed all required documents and paid

the admission fees; however, processing of the documents for licensing

was suspended at the request of the companies:

1. American Amicable Life Insurance Company

2. Republic National Life Group Insurance Company

3. XYZ Life Insurance Company

During the fiscal year three companies changed their corporate

names as follows:

1. Occidental Life Insurance Company of America
changed to TransAmerica Occidental Life Insurance Company

2. BVI Insurance Limited changed to International Guaranty
Insurance Company

3. Title Guarantee Company changed to Safeco Title Insurance
Company of Maryland


-31-








Two companies withdrew from the Virgin Islands during the current fiscal period:

1. Royal Insurance Company the company stated they reached the decision due

to adverse results experienced in the Virgin Islands and the fact that the under-

lying conditions seem unlikely to improve within the foreseeable future.

2. Chelsea Title & Guaranty Company the company's business in the area has

always been minimal; therefore, they have decided to discontinue active solicitation

in this jurisdiction.

Five hundred eighty-three individual licenses were issued in the following

categories:


ORIGINALS RENEWALS
ITEM 1981 1980 1979 1978 1981 1980 1979 1978

General Agents 11 4 -0- 4 21 19 22 21

Insurance Agents 35 29 32 36 187 174 172 185

Solicitors -0- -0- -0- -0- 4 5 5 6

Nonresident Agents 14 8 14 8 4b 46 33 36

Nonresident Brokers 4 6 7 9 43 39 38 33

Surplus Line Brokers 1 1 -0- -0- 8 7 8 7

Resident Brokers 4 4 5 9 29 33 28 22

Adjusters 7 4 3 7 19 17 18 14

Apprentice 151 98 82 100 Non-renewable
227 154 143 173 357 340 324 324


One agent's license was revoked based on information furnished by his company

that funds were used for his personal benefits. He was served notice to appear in

a hearing to show cause; however, he requested that the hearing be waived, and

promised to repay the funds to the company.

The office refused to renew the license of one resident broker based on miscon-

duct and misuse of funds placed in his fiduciary trust. Approximately 15 insureds

reported having paid him full premium amounts to secure insurance coverage on personal

property, only to be later served cancellation notices by companies for non-payment,

-32-








or to learn they had no coverage when they became involved in a mishap. Part-payments

of the premiums were made in some instances, and in others the business was never

placed at all. He was ordered to appear before the Commissioner of Insurance to show

cause in revocation proceedings. Preliminary hearings were held, at which charges

brought against him were read. Since the violation under the Insurance Code is

punishable by a small fine of not more than $250.00, the Attorney General was directed

to gather additional evidence to submit to the District Attorney in order that crimi-

nal charges could be brought against him. However, having prior knowledge he absconded.

One hundred twenty-nine examinations were administered during the fiscal year.

One thousand six hundred thirty-three policy forms were approved for use by

companies licensed to conduct business.

All companies licensed were requested to increase their deposit for policyholders

in the Virgin Islands to a minimum of $100,000. The law stipulates a minimum of $20,000.

However, the justification advanced by the Commissioner was the total business written

by the companies; also, a guaranty fund is non-existent at this time from which claims

may be paid should a company encounter difficulties.

For the past two fiscal years status reports were given on claims filed with the

Commissioner of Insurance in Puerto Rico, Liquidator of the now defunct Commonwealth

Insurance Company. In the early months, the Liquidator and Director of the Guaranty

Fund in Puerto Rico were in dispute over which agency had jurisdiction over certain

claims, especially those involving cross-over and reinsurance payments. During the

period of litigation to clarify the dispute, simple cases were investigated and paid

by the Guaranty Fund to Puerto-Rican residents. However, to date, none of the Virgin

Islands claimants has been given any consideration for payment either by the Liquidator

or the Guaranty Fund, and we have been merely advised that the matter has not been

finalized regarding claims filed by Virgin Islands policyholders.

Because of the delay and uncertainty as to a date for settlement, the Attorney

General's Office was requested to review the cases. They will be reviewing claims

filed in an effort to determine which ones are proven and which, if any, need be

-33-








challenged. When this is completed, a determination will then be made as to what

percentage of the total deposit each claimant will be entitled to, since the amount

paid with the Commissioner is small. The original deposit was $50,000. The review

had just commenced within the closing days of the fiscal year; therefore, it will

be sometime before actual claim amounts may be determined and payments made.

Last fiscal year the Virgin Islands became eligible under the Regular Phase of

the Federal Flood Insurance Program. By way of Public Hearings, the agents and

brokers and the general public were informed of this eligibility. In addition, our

bouts with hurricanes Frederic and David were eye-openers for the home owners as to

the need for such coverage. This type of coverage is offered through the Federal

Emergency Management Agency and applications are processed through local licensed

agents or brokers. During the month of March, when St. Croix experienced heavy

rainfalls, several home owners in the Mon Bijou area made inquiries concerning

the availability of this type of coverage.

At the end of the fiscal year the Federal Agency had sold one thousand nine

hundred seventy-nine flood insurance policies to Virgin Islands residents with a

dollar value of $57,592,800. The figures were not available on a island-by-island

basis.

With the high incidence of crime in our jurisdiction, the rates on this type

of coverage on the normal market has risen considerably both for home owners and

businesses. During the last fiscal year the low-cost federal crime insurance was

made available to the Virgin Islands, and through this medium some degree of relief

was afforded to those who were unable to purchase the coverage on the open market.

Total crime policies sold in the Virgin Islands during the fiscal year are as follows:

Amount of Premium
Policies Dollar Value Collected


Commercial 37 $423,000.00 $26,179.00

Residential 28 244,000.00 2,090.00


-34-








Seven (7) claims were paid which amounted to $22,873.00.

The Division's staff provided advice and assistance to the public by respond-

ing to 1,523 telephone inquiries, 514 persons who visited the office, and also via

correspondence.

Companies reported a total volume of business of $39,304,347.81, which reflects

an increase of $3,149,999.03 or 91 percent. The premium taxes collected this fiscal

year amounted to $787,935.09 which represents an increase of $64,676.74 or 91 percent

over that reported last fiscal year.


VOLUME OF BUSINESS


1981-1980


$ 39,304,347.81


1980-1979


$ 36,154,348.78


1979-1978


$ 32,905,256.00


1978-1977


$ 25,778,219.30


PREMIUM TAXES COLLECTED


$ 787,935.09


$ 723,258.35


$ 658,105.13


$ 541,528.55


Of the overall totals, business placed through the Surplus

to $55,091.00, and generated a premium tax of $1,101.82.

Comparative tables of collection activities follow:


Lines Brokers amounted


-35-





















Certificates of Authority (Reg.)


Certificates of Authority (N.P.)


General Agents


Insurance Agents


Resident Brokers


Solicitors


Adjusters


Nonresident Agents


Nonresident Brokers


Surplus Line Brokers


Apprentices


Original
$1 ,350.00


-0-


1,100.00


2,100.00


400.00


-0-


420.00


1,400.00


1,000.00


100.00


1,510.00
$9,380.00


COMPARATIVE TABLE OF COLLECTION ACTIVITY


1981 1980
Renewal Original Renewal
$5,850.00 $ 450.00 $5,550.00


-0-


420.00


1,865.00


720.00


40.00


190.00


920.00


1,075.00


800.00


-0-
$11,880.00


-0-


400.00


1,730.00


400.00


-0-


240.00


800.00


1,500.00


100.00


990.00
$6,610.00


-0-


380.00


1,730.00


825.00


50.00


170.00


920.00


975.00


700.00


-0-
$11,300.00


IES


19
Original
$ 750.00


-0-


-0-


2,030.00


600.00


-0-


60.00


1,400.00


1,750.00


-0-


850.00
$7,440.00


Renewal
$5,662.50


-0-


460.00


1,690.00


725.00


40.00


180.00


660.00


950.00


800.00


-0-
$11,167.50


1978
Original Renewal
$ 150.00 $5,437.50


-0- -0-


400.00 420.00


2,160.00 1,850.00


900.00 550.00


-0- 60.00


360.00 140.00


800.00 720.00


2,250.00 825.00


100.00 700.00


1,000.00 -0-
$8,120.00 $10,702.50










O T H E R F E E S


1981

Premium Taxes $ 787,935.09


- Annual Statements (Reg.)

- Annual Statements (N.P.)

- Charter Documents

- Power of Attorney

- Amendment to Licenses

- Certified Copies

- Xerox Copies

- Appointment of Agent & State-
ment of Agreement to Serve

- Amended By-Laws

- Amendments to Articles of Incorp.

- Solicitation Permit


397.50

20.00

1,275.00

105.00

14.00

15.00

191 .00


Filing

Filing

Filing

Filing

Filing

Filing

Filing

Filing


Filing

Filing

Filing


1980

$ 723,258.35

397.50

20.00

525.00

45.00

4.00


-0-

45.00


125.00

12.00

20.00


1979

$ 658,105.13


1978

$ 541,528.55


397.50

20.00

750.00

86.00

9.00

15.00

14.00


120.00

9.00

60.00

10.00


377.50

20.00

150.00

37.00

4.00

-0-

22.00


98.00

31.00

-0-


Issuance Solicitation Permit

Sale of Booklets

Examinations

Miscellaneous Documents

Certificates of Good Standing

Certificates of Deposit


10.00

679.00

399.00

-0-

35.00

-0-
$ 791,336.59


-0-

567.00

240.00

5.00

-0-

10.00
$ 725,273.85


-0-

525.00

276.00

12.00

10.00

10.00
$ 660,428.63


-0-

707.00

309.00

-0-

10.00

10.00
$ 543,304.05


148.00

23.00

90.00








The Division of Banks and Insurance was moved to new quarters situated within

the main structure of the office which were previously occupied by the Tax Assessor's

Office. It provides more work space than the previous quarters; however, it can

be rather uncomfortable during extremely hot days, despite the fact that the office

is located on the third floor. Also, when it rains the employees are forced to

close the windows and cut off the outside air.

Inside shades are needed for protection from the sun on the eastern side in the

early morning, and from the south in the afternoon. Only one has been provided thus

far, although the problem was made known.

Three IBM typewriters were replaced, two of which were in use over ten years.

The old desks which had been in use since 1961 and earlier were also replaced, and

the chairs which were badly in need of repairs were re-upholstered.


-38-









NOTARIAL CO4ISSIONS


Pursuant to the provisions of Chapter 29, Title 3 of the Virgin

Islands Code, the Governor of the Virgin Islands is authorized to

appoint and commission all public notaries, not exceeding 250 in number.

The Office of the Lieutenant Governor is charged with the administration

of all functions relating to this sphere of activity, including all

paper work, record-keeping and files, etc.

In addition to public notaries provided under this title, the

Governor may empower employees of the Virgin Islands Government, not

exceeding forty (40) in number, to take acknowledgments and administer

oaths and affirmations on matters of official business of the Virgin

Islands Government or the Government of the United States, and no fees

for such acknowledgments and oaths or affirmations shall be charged.

Section 801 of Title 3, Virgin Islands Code, is the applicable statute

in this respect.

The Virgin Islands Code also permits various judicial officers, the

Registrar and Deputy Registrars of Vital Statistics of the Department of

Health, each official reporter of the Legislature of the Virgin Islands,
as well as the Executive Secretary of the Legislature of the Virgin Islands,

to be appointed as ex-officio notaries public.

The demand for public notaries continues to grow, and there is presently

existing a sizeable waiting list of persons interested in becoming public

notaries throughout the Virgin Islands. Presently, there are 204 public

notaries in the territory. Vacancies now exist since the statute provides for

250. Forty (40) government employees hold the designation of Government

Notaries Public, and this figure represents full subscription to the quota

allowed by law.


-39-








TRADEMARKS, PATENTS AND COPYRIGHTS


Trademarks, Patents and Copyrights are registered in the Virgin

Islands pursuant to the Governor's Rules and Regulations promulgated on

June 11, 1959, as amended by the Governor on September 15, 1972. The

Office of the Lieutenant Governor is responsible for issuance of all

certificates of registration, files, and correspondence in this sphere

of activity. Applicants may register their marks, copyrights or patents

at their option in the Virgin Islands, but they must first have been

registered within the United States Patent Office in Washington, D.C.

During the Fiscal Year 1981 there were forty (40) trademark actions

recorded in the Lieutenant Governor's Office. They are broken down as

follows:

16 Original Registrations @ $20.00 each.................$320.00

19 Renewals @ $17.50 each..............................332.50

5 Assignments @ $20.00 each............................100.00
Total....$752.5
There was collected an amount of $2.50
representing the difference on applicable
fee for an assignment....................................... 2.50

A British Company sent an extra $0.15 on an
Original Registration fee................................... .15
Grand Total Collections........$755.15

Significant of this fiscal year is the fact that all notarial

records have recently been put on microfilm, thus allowing for much

needed filing space within the Administration Division.

Pursuant to the provisions of Section 771, Title 3, Virgin Islands

Code, seventy-six (76) notary commissions were issued during the fiscal

year. (This figure includes members of the Virgin Islands Bar).

They are broken down as follows:

Original commissions...............12
Renewals ..........................64

76


-40-





One commission was paid for, but has been held over and is

presently in a pending status.

There were five (5) Government Notaries Public commissions issued

during the fiscal year pursuant to the provisions of Section 801,

Chapter 29, Title 3 of the Virgin Islands Code. In addition, two

notaries were appointed for the island of St. John (Cruz Bay area)

pursuant to the provisions of Section 805(b) of Title 3 of the Virgin

Islands Code, and the Executive Secretary of the Legislature was

appointed an Ex-Officio Notary pursuant to Section 771 of Title 3,

Virgin Islands Code, as amended.

Cancellations were as follows:

Public Notaries ................. 14

Attorneys ....................... 6

Government Notaries............... 2

Total fees collected for notarial activity during the fiscal year

was $3,075.00, itemized as follows:

77 Four-year Commissions at $20.00 each....$1,540.00

307 Annual License fees at $5.00 each....... 1,535.00

Total Fees Collected......$3,075.00

SERVICE OF PROCESS

Summonses and complaints may be served on the Lieutenant Governor

of the Virgin Islands pursuant to the provisions of Section 348, Title

13, Virgin Islands Code, which carries a $5.00 fee, and of Section 543

of Title 20, Virgin Islands Code, which carries a $2.00 fee.
During the Fiscal Year 1981, the Lieutenant Governor was served with
Summonses under the above provisions of law as follows:

Section 543, Title 20, Virgin Islands Code

26 Summonses @ $2.00 each...................$ 52.00
Section 348, Title 13, Virgin Islands Code

11 Summonses @ $5.00 each... .............. 55.00
Total Collections..........$107.00
-41-






SERVICE OF PROCESS CONTINUED

The summonses are served by Marshals of the Territorial Court of the Virgin

Islands. In the case of summonses served pursuant to the provisions of Section 348

of Title 13 of the Virgin Islands Code, copies of the papers are forwarded to the

Resident Agent of the Defendant corporation via registered mail. In the case of

summonses served pursuant to the provisions of Section 543, Title 20, Virgin Islands

Code, an acknowledgment is forwarded to the Attorney for the Plaintiff. Both types

of summonses are entered in a Process Book which is maintained in the Lieutenant

Governor's Office for such purpose.

ACTS AND RESOLUTIONS OF THE LEGISLATURE OF THE VIRGIN ISLANDS

The Office of the Lieutenant Governor is charged with the assignment of Act

Numbers to enactments passed by the Legislature of the Virgin Islands and approved

by the Governor. Distribution of these laws are made to the various executive

departments and instrumentalities of the government to serve as source of informa-

tion. This office is also charged with forwarding these enactments to Equity

Publishing Corporation of Orford, New Hampshire (Publishers of the Virgin Islands

Code) for printing in slip law form and for inclusion in the Session Law Volumes.

The office also serves as the depository for filing of all original acts and

resolutions in addition to tiling and storage of the slip laws and session law

volumes.

During Fiscal Year 1981, there were 137 Acts passed by the Legislature and

acted upon by the Governor as follows:

APPROVED.........................113

BECAME LAW WITHOUT APPROVAL........ 11
LINE ITEM VETOED .................. 5

OVERRIDDEN......................... 8
137

Seven bills were returned to the Legislature, without approval, accompanied

by veto letters of transmittal.

Thirty-three (33)Resolutions were acknowledged by the Governor during Fiscal
Year 1981.


-42-








EXEajTIVE ORDERS AND PROCLAMATIONS


There were fifty-three (53J Proclamations issued by the Governor of the

Virgin Islands during Fiscal Year 1981. During this same period the Governor

issued nine (9) Executive Orders.


-43-







PASSPORT DIVISION


The Office of the Lieutenant Governor is charged with the responsi-

bility of screening, approving, rejecting and processing all U.S. Passports

filed through the U.S. District Courts of the Virgin Islands on St. Thomas

and St. Croix. The Department of State in Washington, D.C., makes final

determination of eligibility whenever the Virgin Islands Passport Office

cannot readily resolve eligibility.

During Fiscal Year 1981 a total of 4,921 original U.S. Passports

were issued. The summer months continue to be our peak months for activity

with the months of June, July and August with totals of 633, 730 and 824

respectively. The overall total shows a 14% increase in applications.

This increase is due to the demand for passports when entering even the

British Virgin Islands. Many naturalized citizens also account for this

increase.

Passport Fees were increased on February 12, 1981, from $14.00 to

$15.00 for all persons filing for the first time, minor children, and

applicants applying for replacement passports. The renewal fee remains

at $10.00.

The fraud rate continues to increase. We have been unsuccessful in

our attempt to use the TWX Line for clearance due to high cost of installa-

tion and no Federal Agency available for us to piggy back into. However,

we are optimistic that maybe when the Federal Government economic

situation is not so restraint, we will be able to get the TWX Line.

Positive steps have been taken to relocate the Passport Office to a

larger area. We were hoping it would have been by the completion of Fiscal

Year 1981 but due to some repairs, we were detained in our present area

pending completion. Our customers should be proud of our new location

when completed.


-44-








The Basic Management Skills and Management Planning Seminar given

by the Bureau of Public Administration through the College of the Virgin

Islands was attended by the Supervisor of Passports Division. This course

is given in series, and a third and fourth would be made available to all

participants of the first two series. The third in the series should be

of particular interest since it will cover the objectives, goals and

evaluations. That series will assist us in setting priorities and

objectives through proper planning and evaluation of workload. Each

seminar was for three days in duration.

We have been able to process all passports applications approved for

issuance within 10 working days from the date received in our office with

allowance being made for justifiable emergencies.

The following table shows passport activity for the past five years:

1977 1978 1979 1980 1981

Issued 3,418 3,252 4,726 3,492 4,921

Amended 13 12 45 41 39

Extended 23 25 13 15 12

Limited 24 8 12 27 18

Fees Collected:

$44,161** $38,519** $20,038"* $46,685** $44,925****

910* 1,940* 33,082** 10,010***

6,640* 8,970* 13,620*


**** This figure represents books at $15.00.

*** This figure represents books at $14.00.

** This figure represents books at $13.00.
* This figure represents books at $10.00.
Applications Received for Fiscal Year 1981 5,167

Applications Issued for Fiscal Year 1981 4,921

Applications Pending 246


-45-









RECORDER OF DEEDS

(St. Thomas)


The Office of the Recorder of Deeds operates under the supervision

of the Lieutenant Governor, who exercises jurisdiction over the filing

and recording of deeds and other instruments relative to real property.

The Recorder of Deeds, for the District of St. Thomas-St. John,

performs the duty of recording documents as outlined in Title 33,

Section 2362 of the Virgin Islands Code. This section of the law pro-

vides for the transfer of real property or interest thereon, mortgages

and other securities for debt secured by real property. The Recorder

also performs the functions provided in Title 28 Chapter 7, Section 134

of the Virgin Islands Code, Title IIA of the Uniform Commercial Code

and the duties as outlined in the Condominium Act of 1965.

Because of the Construction Lien Act of April 29, 1976, many people

who were experiencing difficulty in collecting monies for construction

purposes are now using this method as a means of collecting outstanding

balances due them. A total of sixty-five (65) Liens have been filed for

this fiscal year.

Revenues collected on condominiums and related documents have

increased in the amount of $1,805.49; UCC and related documents have

decreased by $950.95; Xerox copies have decreased by $831.65 and Letters

of Certification have decreased by $340.00 as compared to last fiscal

year.

Our business activity for this fiscal year is reflected in the

following Comparative Analysis. We have shown comparative figures for

five (5) consecutive years.


-46-







A total of 8,568 documents have been recorded, indicating a

decrease of 2,005 documents.

Documents, mortgages, etc., were decreased
by 523 documents.

Condominium and related documents were
decreased by 144.

A decrease of 668 documents is shown in the UCC Section of this

department. A total of 1,715 Xerox copies issued for this fiscal year

shows a decrease of 545 copies compared to last fiscal year. Similarly,

Letters of Certification decreased by 85 over 1980.

Since the sale of Internal Revenue Stamps began in 1975 by this

office, each year the sales have increased. As you will note from the

Comparative Analysis which follows, a total of 6,285 stamps have been

sold this year, netting an amount of $421,798.66, an increase of

$44,976.04 over 1980. You will also note that the General Fund has been

increased by $16,871.95. This amount would have gone to the banks in

commission at 4% of the overall total.

Six hundred ten thousand four hundred forty dollars and sixteen

cents ($610,440.16) has been collected in revenues for Fiscal Year 1981,

indicating an increase of $10,781.51, over last fiscal year.

A listing of all documents and revenues collected for the period

of October 1980 to September 30, 1981, is as follows:

3,048 Documents $119,731.60

1,186 Condominiums & related documents 57,777.59

2,888 UCC & related documents 6,517.25

1,715 Xerox copies 3,557.65

193 Letters of Certification 772.00

65 Construction Liens 285.50
$188,641.50
6,285 Internal Revenue Stamps 421,798.66

GRAND TOTAL REVENUE COLLECTED................$610,440.16


-47-







NON REVENUE DOCUMENTS

Title 28 Section 134 of the Virgin Islands Code and the Stamps Tax

Law under Title 33, Section 128 provides that documents issued to and

from the United States or the Government of the Virgin Islands, or any

instrumentality thereof shall be exempt from Recording and Stamp Fees.

A listing of these documents as recorded will follow. A total of 1,712

documents were recorded. This total document should have netted in the

area of $21,465.25.

Six thousand four hundred fifteen (6,415) Xerox copies of docu-

ments, free of charge, were issued to various offices for use of the

Government, such as the Office of the Governor, Department of Property

and Procurement, Department of Law, etc.

The law recently passed by the Legislature, empowering the

Employees Retirement System to grant car loans has been temporarily

suspended; however, a total of 192 such loans were recorded during this

fiscal year.
Below is a breakdown of the number of Mortgage Loans made by each

bank and other lending institutions during Fiscal Year October 1, 1980,

to September 30, 1981:

LOANS TO INDIVIDUALS


No. Banks Mortgage Amount


267 Chase Manhattan Bank $25,802,765.00

172 First Pennsylvania Bank 9,455,995.31

59 Bank of America 6,826,606.27

38 Barclays Bank 6,104,800.00

3 Citi Bank 487,500.00

11 Bank of Nova Scotia 461,721.44

5 1st. Federal Savings & Loan Assoc. 235,500.00
555 TOTAL BANK LOANS .....................$49,374,888.02


-48-








LOANS TO INDIVIDUALS CONTINUED


No. Other Institutions Mortgage Amounts


319 Personal Loans $ 18,157,654.56

112 Farmers Home Administration 2,917,540.00

122 Employees Retirement System 2,690,518.00

1 V.I. Port Authority 1,910,120.00

22 Small Business 535,779.95

24 V.I. Housing Authority 161,994.53

13 Housing & Community Renewal 136,000.00
M TOTAL LOANS.................................. $26,509,607.04


1,168............. GRAND TOTAL LOANS .................$75,884,495.06




The above loans contributed to the business activity of this office

and to the economy of the Virgin Islands. The total bank loans were

decreased this fiscal year by 98 loans, and the total revenues granted

were decreased by $3,284,027.53. Other institutions' loans decreased by

35, even though revenues were increased in the amount of $6,064,085.18.

The overall grand total was increased by $2,771,057.65.


-49-









COMPARATIVE ANALYSIS OF DOCUMENTS #1
Recorded During Fiscal Years
October 1, 1980 to September 30, 1981
--------------- ----------------

1977 1978 1979 1980 1981



Deeds 808 988 1,454 1,254 1,174
Mortgages 629 881 1,114 1,012 860
Subordinated Mortgages 29 21 24 22 13
Assumption of Mortgage 6 12 10 7 1
Mortgage Notes 82 137 146 232 112
Contracts 8 12 36 49 49
Cancellations & Releases 1,257 1,338 1,330 1,251 755
Partial Releases 47 113 189 160 149
Modification of Mortgage 5 3 6 1 3
Mortgage Addendum 10 11 5 7 3
Bill of Sales 6 15 11 16 --
Leases 27 36 58 49 54
Amendment of Leases - 5 4 13 3
Liens 759 606 999 579 574
Adjudications 43 39 49 45 42
Death Certificate 30 27 54 76 52
Assignments 86 93 73 73 55
Easements 67 24 15 17 63
Agreements 38 37 33 41 37
Wills 6 11 15 9 4
Affidavits 5 21 15 23 22
Power of Attorney 66 86 156 154 161
Certificate of Pur. & Sales 20 36 43 22 3
Certificate of Redemption 16 8 183 8 -
Attached Doc. & Restrictions 122 129 232 211 162
Limited Partnership 1 2 8 17 13
Miscellaneous 57 64 68 95 152
Expiration of Redemption 5 -- -- 1 --
Construction Lien Agreements 5 19 17 35 65
Security Agreement - 3 10 - -

TOTAL DOCUMENTS 4,229 4,777 6,335 5,473 4,354

FINANCING STATEMENTS

Financing Statements (UCC) 1,831 2,376 3,488 2,760 2,148
Releases (UCC III) 839 894 1,034 673 627
Partial Releases 1 -- -
Attached Documents 3 1 1 - -
Agreements --- 3 1 1 - -
Requests (UCC II) 57 41 67 49 62
Assignments (UCC III) 25 14 18 15 1
Chattel Mortgages 25 248 167 137 41


-50-










1977 1978 1979 1980 1981


Continuation Statements 357 43 72 101 119
Amendments (UCC III) 27 27 5 24 5
Bill of Sale 32 1 -- -
Dontracts 2 1 1 1 -
Liens 12 -- 1 5 --
Security Agreement -- - 10 -
Leases -- --2 --

total Financing Statements 3,230 3,651 4,880 3,770 3,003

DONDOMINIUM

Deeds 168 194 392 357 303
Declaration By Laws 6 4 10 19 3
Mortgages 94 132 370 284 267
Assumption of Mortgages 33 35 27 12 -
iodification of Mortgage 4 5 6 2 -
Subordination of Mortgage -- 2 1 -- -
1ortgage Notes 5 8 4 9 3
Releases 58 79 164 122 138
Power of Attorney 15 57 193 188 191
Partial Releases 55 58 198 212 103
Attached Doc. & Restrictions 1 12 27 38 8
Liens 47 29 14 25 55
Agreements 1 4 1 8 17
Assignments 8 23 7 4 2
Bill of Sale -- 1 -- -
Wills 3 -- 1 -
Death Certificate 3 3 3 2 2
Certificates 2 1 3 --
Adjudication 1 -- 2 -- -
Affidavits 3 9 3 2 1
Miscellaneous (Waivers) 6 2 6 23 65
Certificate of Sale 14 3 3 15 -
Amendments 4 3 2 1
Limited Partnership - 2 -
Lease - 1 1 2
Redemption -- 2 --
Contracts -- 23
Attahments -- 27
Easements 2

Total Condominium 526 671 1,435 1,330 1211

OVERALL GRAND TOTAL DOCUMENTS 7,985 9099 12650 10573 8568


-51-









COMPARATIVE ANALYSIS OF COLLECTIONS


FISCAL YEARS 1977- 1981


1977 1978 1979 1980 1981


July 1, 1976 to
June 30, 1977

July 1, 1977 to
June 30. 1978

July 1, 1978 to
September 30, 1979

October 1, 1989 to
September 39, 1980

October 1, 1980 to
September 30, 1981


53,967.53


$ 99,062.02


$ 154,119.42


$113,894.42


$119,731.60


$53,967.53 $99,062.02 $154,119.42


$113,894.42 $119,731.60


REVENUES


Documents $ 53,967.53
Condominiums 16,782.00
Fin. Statements 6,686.50
Certified Copies 1,937.55
Letters of Certification 736.00
Construction Liens - -


Revenue Stamps

GRAND TOTALS


80,109.58
131,712.16


$ 99,062.02
17,072.02
8,617.20
2,968.20
636.00
72.50


128,428.36
232,138.72


$ 211,821.74 360,567.08


$154,110.42
40,762.20
10,174.00
4,445.60
764.00


210,265.22
419,512.12

629,777.34


$113,894.42
55,972.10
7,468.20
4,389.30
1,112.00


$119,731.60
57,777.50
6,517.25
3,557.65
722.00
285.50


182,836.02 188,641.50
416,822.62 421,798.66

599,658.64 610,440.16


-52-










OCTOBER 1, 1980 to SEPTEMBER 30, 1981


Tax Liens
Releases of Tax Liens
Cancellation of Attachments
Writ of Execution


2,061.00
428,00
25.00
31.50

$ 2,545.50


GOVERNMENT


Deeds (V.I. Housing)
Deeds (Urban Renewal)
Deeds (Property & Procurement)
Deeds (Housing & Community Renewal)
Deeds (Attorney General)
Deeds (Farmers Home Administration)
Deeds (Dept. of Finance)
Deeds (V.I. Port Authority)
Mortgages (Housing & Community Renewal)
Mortgages (Farmers Home Administration)
Mortgages (V.I. Housing)
Mortgages (Retirement System)
Mortgages (Small Business)
Mortgages (V.I. Port Authority)
Mortgage Notes
Subordination of Mortgage
Releases
Agreements
Assignments
Easements
Attachments (Territorial Court)
Leases
Power of Attorney
Partial Release
Car Loans (Retirement, etc.)
Protective Covenant (Urban Renewal Board)
Agreements (Property & Procurement)
Dedication of Roads (Property & Procurement)
Miscellaneous
Mortgage (Veterans Affair)


Xerox Copies were made for the use
of other Government Offices


5,582.50
8.00
464.00
1.00
14.00
-0-
8.00
2,249.00
199.50
3,221.75
222.00
3,865.00
565.00
912.00
745.75
22.50
141.25
18.00
9.00
198.00
8.00
-0-
20.00
4.50
384.00
8.00
16.50
10.50
8.00
14.00

18,919.75



$ 21,465.25


-53-


470
428
25
7


930


28
2
7
3
1
1
1
1
16
98
21
127
21
1
168
5
31
3
2
34
4
2
4
1
192
1
2
3
1
_x


782


6,415

8 127








MICROFILM

In reviewing the microfilm on records, there are still a number of

films that need to be replaced. We are re-typing some of the faded

documents so that the films may be readable. Two of the Recorder of

Deeds staff do the typing of these documents between their regular work.

In other instances, we will be able to have copies made from some of

the series of records at the public library.

The new filming machine installed in the Office of the Recorder of

Deeds and operated by Mr. Knight, is being used to film the records of

the Lieutenant Governor's Office; however, the processor is set up at

the Microfilm Section of the public library with the able assistance of

Mr. Moron who oversees the processing of said documents from the Office

of the Lieutenant Governor.


GENERAL COMMENTS


Space continues to be a problem in the Office of the Recorder of

Deeds, but with the renovation of our office, we hope to utilize the

space in the back room where the books are being kept, by adding some

shelves around the side thereby eliminating those large storage

cabinets. The wooden cabinets which housed the auxiliaries are filled

to capacity, and we must find space for these auxiliaries.


Our Goals for Next Fiscal Year are:



1. Preparation and processing of our microfilm

2. Continuation of re-typing faded documents

3. Re-hiring Mrs. Gundy Pedersen on a part-time basis

to continue translation of the St. Croix books.


-54-









GENERAL COMMENTS CONTINUED


This office needs two (2) more clerks, but it would appreciated

very much if one (1) clerk was given us if we can't have the two. If

we are to monitor persons handling the books in the back room and the

copying of documents, we need that extra person.

Some consideration of overtime for employees in this office should

be considered. The work load in this office continues on an increase

and all cannot be done during the regular working hours. We are

requesting that an employee be assigned full time to be in charge of

handling all matters relative to the Uniform Commercial Code Section.

The staff of this office continues to do an excellent job in main-

taining the smooth running of the office.

This office continues to receive complimentary remarks about the

efficient work habits displayed by its employees.


-55-








OFFICE OF THE RECORDER OF DEEDS


(St. Croix)


The Office of the Recorder of Deeds for the Judicial District of

St. Croix, is under the Office of the Lieutenant Governor, maintains an

Office for the recording and filing of deeds, mortgages, contracts and

other legal instruments relating to transfer and title and encumbrances

on Real and Personal Property, and other legal instruments as required

by law to be recorded and filed.

The number of such instruments presented to this office for

Recording and filing for the Fiscal Year 1980 1981 was 7,045, with

a total of fees collected in the amount of $80,549.75.

The following is a breakdown of the different types of documents as

recorded and filed:

12 Territorial Marshal Deeds 304,294.00

1,181 Deeds, etc., conveying real property 35,425,677.00

3 U.S. Marshal Deeds 1,820,000.00

3 V.I. Government Deeds 376,243.00

14 U.S. Government Deeds (HUD)

1 V.I. Government Deed

1 Small Business Development Agency Deed 22,000.00

8 Housing & Community Renewal Deeds 75,258.00

3 Veterans Administration Deeds 116,200.00

1 Housing Corporation of America Deed 20,000.00

33 Adjudications (Territorial Court) --

9 Certificates of Sale 168,371.00

42 Certificates of Redemption 252,987.00


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MORTGAGES AS LOANED BY BANKS, ETC.

29 First Pennsylvania Bank, N.A.

93 Chase Manhattan Bank, N.A.

25 Bank of Nova Scotia

25 Bank of America, N.T. & S.A.

22 First Federal Savings & Loan Assoc. of Puerto Rico

3 CitiBank, N.A.

6 Royal Bank of Canada

3 Banco Popular de Puerto Rico

1 Barclays Bank International, Ltd.

1 Citizens First State Bank of Walnut

1 F.D.I.C. Receiver of People's Bank, V.I.

1 Lincoln National Bank and Trust Company

1 New England Merchant National Bank

3 Trevose Federal Savings & Loan Association
2 Veterans Administration

153 Farmers Home Administration

31 Small Business Administration

1 Housing & Urban Development

85 Retirement System, V.I. Government

17 Housing & Community Renewal

1 Small Business Development Agency

2 Government of the Virgin Islands

10 Frederiksted Federal Credit Union


PRIVATE INDIVIDUAL LOANS


200 Private Individual Loans


$ 978,448.00

5,252,179.00

1,445,500.00

3,181,154.00

653,600.00

53,000.00

106,500.00

60,200.00

150,000.00

19,500.00

4,464.00

550,000.00

245,000.00

205,600.00
78,750.00

4,921,655.00

1,512,200.00

29,000.00

2,407,256.00

164,049.00

11,000.00

337,261.00

77,400.00


9,116,921.00


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RELEASES CANCELLATIONS, ETC.

104 First Pennsylvania Bank, N.A. $ 3,400,925.00

83 Chase Manhattan Bank 5,904,925.00

44 Bank of Nova Scotia 1,508,237.00

21 Bank of America, N.T. & S.A. 845,900.00

10 First Federal Savings & Loan Assoc. of Puerto Rico 206,300.00

21 CitiBank, N.A. 139,338.00

10 Royal Bank of Canada 651,911.00

3 Federal National Mortgage Association 66,000.00

8 F.D.I.C. Receiver of People's Bank, V.I. 163,949.00

1 Barclays Bank International, Ltd. 60,000.00

1 First Bank of Maryland 39,500.00

1 Federal Development Corporation 18,000.00

1 Fortune Federal Savings & Loan Association 60,000.00

1 Housing Corporation of America 2,684,219.00

1 Landmark Northwest Plaza Bank 100,000.00

1 New England Merchant National Bank 105,000.00

1 U.S.A. Virgin Islands Corporation 13,600.00

7 Farmers Home Administration 267,510.00
4 Small Business Administration 92,300.00

5 Housing & Community Renewal 48,587.00

12 Retirement System, V.I. Government 221,400.00

2 Small Business Development Agency 91,000.00

3 Frederiksted Federal Credit Union 15,000.00

103 Private Individual Loans 10,247,317.00


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PARTIAL RELEASES OF MORTGAGES BROKEN DOWN AS FOLLOWS:

4 First Pennsylvania Bank

11 Chase Manhattan Bank, N.A.

6 Bank of Nova Scotia

4 Bank of America, N.T. & S.A.

3 CitiBank, N.A.

3 Royal Bank of Canada

6 Trevose Federal Savings & Loan Association

2 Sarel Pacific Investors, Inc.

1 General Service Administration

17 Small Business Administration

2 Farmers Home Administration

2 Retirement System, V.I. Government

9 Private & Individual

CERTIFICATES OF DEATH

53 Certificates of Death

MISCELLANEOUS DOCUMENTS

744 Miscellaneous Documents
46 Attach documents
TAX LIENS (Federal and Virgin Islands)


Notices of Federal Tax Liens

Releases of Federal Tax Liens

Notices of V.I. Tax Liens

Releases of V.I. Tax Liens

Partial Releases of V.I. Tax Liens


$1,032,228.00

1,226,246.00

1,595,882.00

849,520.00


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126

158

232

199

2









UNIFORM COMMERCIAL CODE

1,789 UCC-I $ 3,578.00
46 attach documents 87.75

157 UCC-I (no fee)

162 UCC-II
127 Information Requests 381.00

19 Information Requests (no fee)

15 Copy Request (no fee) 45.00

1 Copy Request (no fee)

153 Copies 153.00

877 UCC-III
25 Amendments 50.00

7 Assignments 14.00

158 Continuations 316.00

162 Releases 324.00

512 Terminations 1,024.00

13 Terminations & Releases (no fee)

1 Partial Release 2.00

398 Certified Copies of Documents 857.00
(no fee)

44 Certified Copies of Documents (no fee) -

46 Title and Encumbrance Certificates 184.00

258 Title & Encumbrance Certificates
(no fee)

RECORDING FEES $ 73,534.00

TOTAL FEES $ 80,549.75


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OFFICE OF THE TAX ASSESSOR


The authority to tax real property is found in Virgin Islands Code,

Title 33, Section 2301, which states that for every calendar year there

shall be assessed, levied and collected by the Government of the Virgin

Islands, a tax of 1.25% of the actual value of all real property in the

Virgin Islands. This has further been amended to read 60% of the actual

value.

Actual Value for this purpose, is synonymous with market value

which may be defined as the highest price estimated in terms of money

which a property will bring if exposed for sale in the open market,

allowing a reasonable time to find a purchaser who buys with knowledge

of all the uses to which it is adopted and for which it is capable of

being used. The Code also defines real property as to be synonymous

with immovables, which includes land, buildings, structures of every

kind adherent to the soil or anything attached to an immovable in a

fixed manner in such a way that it cannot be separated from the fixed

object without breaking the matter or causing injury to the matter.

This makes machinery, vats, tanks, electrical poles and lines, tele-

phone poles and lines equipment, docks though floating, house trailers,

to be real property and therefore subject to taxation.

Real property appraisal, however, is not solely the valuation of

the physical land and improvement. It includes the valuation of the

rights and privileges of ownership and the restrictions and limita-

tions to which the real property may be subject.


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The physical land and buildings and the structures and the rights

and privileges to use these land, buildings and structures are assessed

and taxed, after actual view, to the person whose name appears on the

records of the Office of the Recorder of Deeds or the person who may be

in possession thereof as of January 15 of each year.

The thirty-one employees of the office are so organized as to

successfully meet the requirements of the law. Each of the eleven

Building Appraisers are assigned to different sections of the three

islands. Each is versed in the construction activities of his area and

with the aid of tax maps and building permits, it is virtually

impossible that any new construction would escape notice. This arrange-

ment has assured the office that each improvement in the Virgin Islands

is being taxed.

The two Land Appraisers for St. Thomas and St. Croix operate under

a system which assures the office that all parcels of land are being

taxed. This system includes the review of the records of the Recorder

of Deeds, the plotting of subdivision maps to the office tax maps and

the field review of the actual subdivision and the recording of subdivi-

sions in an orderly and identifiable manner.

The field and other information gathered by the building and
land appraisal staff is converted to assessments through the
extensive use of the data processing system. This section of the
office, which includes three data processing personnel, performs
the work of converting the tax information to assessment.


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This office is guided by two basic principles: (1) to locate and

tax all real property subject to taxation, and (2) to do this in a fair

and equitable manner. To maintain these principles, it is important

that the professional and scientific methods of appraising real property

be applied in varying degrees, depending on the type and location of

the property being assessed.

After the close of the January 15, 1980 tax year, this office

immediately initiated plans to commence the 1981 reassessment so as to

meet the requirements of the law which dictates that all real property

must be reassessed at least every two years.

The building appraisal staff has been engaged in reassessing all

improvements. Of the 20,000 improvements, the staff actually viewed

15,000 old improvements and appraised 500 new improvements and addi-

tions to improvements.

The land appraisal section has plotted 400 new subdivisions and

recorded several hundred changes in ownership and changes to land areas.

The data processing staff upgraded the data processing system as it

relates to assessment by changing the computation of additional details

such as cisterns, terraces, and fences from a manual process to the

data processing system. This is a significant improvement in the tax-

ing system since it eliminates the last stage of hand computation and

the resulting cumbersome process of accounting for the bi-annual


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increases. The work of converting this information to the data process-

ing system entailed reviewing each of the over 150,000 appraisal cards

in such a manner as to allow for easy processing by the data processing

section.

The 34,747 bills issued for tax year 1980 reflected an assessment

of $976,000,000, with a tax of $12,200,000.00. Of this, St. Thomas

accounted for 15,338 bills and $465,419,997 in assessment and

$5,473,119.75 in taxes; St. John, for 2,290 bills, $69,485,567 in

assessment and $716,375.78 in taxes; Christiansted, for 11,644 bills,

$4,460,455 in assessment, and $371,236,400 in taxes; Frederiksted, for

5,475 bills, $191,363,826 in assessment and $1,370,051.21 in taxes.

These taxes do not include Hess Oil amount of approximately $10,000,000,

which increased the real property tax yield to $22,200,000.00.

The reassessment program, which is now nearing completion, shows

that after examination of present cost of building materials and labor,

that the cost to replace an existing building or to construct a build-

ing, increased by about 30 percent since the 1979 reassessment. The

following reflects the changes in cost of basic building material:


-1 1978 1981

Concrete Products $64.65 $83.88

Lumber Douglas Fir (per sq. ft.) .69 .75

Concrete Blocks (4x8x16) .45 .90

Cement (per bag) 3.95 5.75


This indicates that per sq. ft. cost factor schedule applied for

1979 should be revised to reflect the corresponding increases and should

be reflected on the 1981 real property tax bills. A comprehensive study has

been made to compare the difference between actual sales of real property


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(land and building), to the 1979 values as used by this office.

It was discovered that for St. Thomas and St. John, that the sale of

such properties exceeded the appraisal of this office by an average of

about 30 percent for the lower and middle income homes and upwards of

40 percent for the $150,000 and over homes. This is supported by the

following:

Tax Appraisal Actual Sales

$108,404 $235,000

113,558 165,000

174,856 300,000

77,360 125,000

These findings indicate that the office should take vigilant steps

to upgrade assessments of the higher priced homes if some reasonable and

equitable base is to be achieved.

This should entail a review of the methods used by other juris-

dictions in adopting the market approach to the mass appraisal process

so as to make applying this system as easy and efficient as possible.

Further, investigation should be made into the adoption of this method

to the data processing system. This should be done by the existing

staff and without incurring the cost of consulting services. The

results of the reassessment should reflect some closing of the gap

between actual sales and assessments. The application of the market

appraisal will continue to be applied to condominiums since this class

of property easily fits the methods applied in appraising such

properties.

A study of the assessment of vacant land to vacant land sales

showed that assessments are relatively close to sales; therefore, it is


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anticipated that increases to such properties would be limited to about

8% to 10% for St. Thomas. Land sales for St. Croix have shown no appre-

ciable increase since the 1979 reassessment and therefore a small

increase of about 2% to 4% is anticipated.

The 1981 real property taxes are subject to be increased from the

present amount of $12,200,000.00 to about $15,000,000.00 (not including

Hess Oil). The actual amount which should be collected amounts to

$40,000,000.00 (including Hess), but the following exemptions have

reduced this tax as follows:

Homestead Exemption $ 490,233

Veterans Exemption $ 290,821

Non -Profit Exemption $ 240,547

Farmland Exemption $ 592,491

Church $ 133,346

Industrial Incentive $ 2,951,024

Elderly $ 23,803

The real property tax accounts for a relatively small portion of

the income of the Government. This is due to a number of exemptions

which have served to erode the tax base. This is coupled with an

already low tax rate of 1.25%, which has been reduced by the 60% assess-

ment rate factor. Most other jurisdictions under the American Flag

depend heavily on the real property tax for financial support. The tax

rate of some of the major cities of the United States show the follow-

ing comparison to the local rate:


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Boston 4.6%

Pittsburg 4.11%

Detroit 3.84%

Baltimore 2.88%

Philadelphia 2.06%

Houston 2.40%

Dallas 2.87%

New York 1.888%

Virgin Islands 1.25%

The St. Thomas branch of this office was relocated at the West

Indian Company Dock, Havensight Mall, on July 1, 1981. The new quarters

provided additional space of about 1,000 sq. ft., and improved working

conditions with air-conditioning and more space for each employee. This

move has helped to improve the morale of the employees and subsequently

the production and efficiency.

The new office is equipped with several new desks and chairs and

other equipment. The office is now properly equipped and there is

little need, at this time, for additional purchases. The addition of

three new vehicles assures this office of completing the field

appraisals important to the reassessment and regular assessment activi-

ties.

The needs of this office relate mainly to training employees in the

field of real property appraisal so as to assure the Government of

having a reasonably professional job done. There is an urgent need to

have appraisal employees attend seminars, schools or conferences on real

property appraisal or to have in-office classes on this subject con-

ducted by some recognized body.


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There is also a pressing need to fill several vacant positions and to

return the staff to its full complement of thirty-one employees.

Presently, there is a shortage of six employees. This shortage should

be corrected immediately if this office is to meet the requirements of

the law and the deadline of issuing bills by May 15 of each year.



VACANT POSITIONS TO BE FILLED


Assistant Building Appraiser

Clerk Typist

Assistant Land Appraiser


Clerk Typist

Administrative Secretary


St. Croix

St. Croix

St. Croix (1)
St. Thomas (1)

St. John

St. Thomas


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