5 GCA § 22427: Government of Guam Loan.

(a) Authorization to Borrow. The Governor of Guam, on behalf of the government of Guam, is authorized to borrow an aggregate principal amount not to exceed Fifty-Two Million Nine Hundred Dollars ($52,900,000) to undertake the capital projects enumerated in subsection (g) of this Section; provided, however, that incurring this indebtedness shall not cause a violation of the debt limitation provisions of 48 U.S.C. § 1423(a). The debt may be incurred and the proceeds expended for the purpose of allowing the government of Guam to pay for the cost of arranging the loan and for the purposes described herein.

(b) Terms and Conditions Determined by Loan Agreement. The terms and conditions of the loan shall be as determined by the Governor by the execution of a loan agreement authorizing the loan. The loan agreement shall contain such terms and conditions as are consistent with this Section. The terms of the loan shall include the following:

(1) The loan shall be used by the Governor for the purposes stated herein;

(2) Prepaid charges shall not be levied by the bank or trust department extending the loan;

(3) The interest rate shall be subject to competitive negotiations between the Governor and the banks.

(4) Interest derived from the loan shall be exempt from taxation by the government of Guam.

(5) All terms of the loan agreement not specifically defined in the foregoing shall be negotiated by the Governor in the best interest of the people of Guam.

(6) The duration for the repayment of the loan shall be as negotiated by the Governor, but shall not exceed twenty (20) years.

(7) The loan shall be arranged with any bank or commercial lending institution licensed on Guam; provided, however, anything to the contrary in this Section notwithstanding, or any other provision of law, that the terms of the loan arranged by the Governor as provided by this Section, may permit the bank or commercial lending institution licensed on Guam with which such loan is arranged, to grant participation in such loan, at such times and in such amounts and upon such terms and conditions as such bank or lending institution licensed in Guam shall determine, to other banks, or commercial lending institutions, or to any other persons, associations, or corporations. The exemptions from taxation by the government of Guam of the interest derived from the loan shall be preserved to any such participant.

(c) Appropriation from the Tourist Attraction Fund. There is hereby appropriated from the unencumbered balances of the Tourist Attraction Fund, notwithstanding anything in 11 GCA § 30107 to the contrary, such sums as will equal in each year the amount of money necessary to pay the principal of and interest on such loan.

(d) Waiver of Immunity. Notwithstanding any substantive or procedural provisions of Chapter 6 of Title 5, Guam Code Annotated, the government of Guam waives immunity from any suit or action in contract on the loan but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

(e) Form of Loan; Covenants. The technical form and language of the loan, including provisions for execution, exchange, transfer, negotiability, cancellation or other terms or conditions not inconsistent with this Section, shall be as specified in the loan agreement executed by the Governor evidencing the loan. The Governor is also authorized to execute, on behalf of the government of Guam, any appropriate agreements or other instruments relating to the loan.

(f) Bond Issue Rollover. The language of the loan agreement shall include provisions to permit the loan to be rolled over into a bond issue supported by the Tourist Attraction Fund. The Governor is urged to obtain a repayment schedule that will provide for interest-only payments until the loan is so rolled over.

(g) Use of Loan Proceeds. The proceeds from the loan shall be used solely to implement and equip the capital projects enumerated herein and to pay expenses relating to the arrangement of the loan. The capital projects to be implemented and equipped with the proceeds of the loan authorized by this Section are as follows:

Capital Projects Allocated

Amounts (1) For Tumon Fafai

Reversion Project,

(A) For the acquisition and

construction of the Gun

Beach – Fafai Wastewater

System $8,400,000

(B) For design and

construction of the Tumon

Pump Station and Force

main $3,600,000

(C) For the refurbishment

of the Northern District

Sewage Treatment Plant $1,800,000

(D) For the refurbishment

of the Agana Sewage

Treatment Plant $2,000,000 (2) For Oka Point Collector

System Project

(A) For design and

construction of the Oka

Point collector lines $2,000,000 (3) For Tumon Water Lines

(A) For design and

construction of waterlines $4,200,000 (4) For Tumon Water Sources

(A) For drilling and

construction $5,800,000 (5) Tumon Bay Beautification

(A) Streets & Sidewalks

for medians, crosswalks

and intersections, beach

access, sidewalks and

curbs, street furniture for

benches, trash containers,

signage, shelters, street

lights and traffic lighting,

enhancements for

Governor Flores and

Matapang Beach Parks $7,200,000

(B) Landscaping for

medians, road edge strips,

entry points from San

Vitores Boulevard to beach

access $3,900,000

(C) Services

undergrounding for ocean

side power lines and

cables, clutter, removal of

guy wires, and signage

consolidations $4,500,000

(D) Design and

management fees for

design development, $1,600,000 construction

documentation, permitting,

and construction

management

(E) Allowances for

roadway repairs and

restoration, resurfacing of

San Vitores Boulevard,

off-site infrastructure

work, and related work $5,000,000

(F) Of the approximately

ten percent (10%) savings

anticipated in carrying out

the foregoing projects

because of various

duplications, Three Million

Five Hundred Thousand

Dollars ($3,500,000) are

set aside for

constructing the Tumon

Bay Storm Drainage

System.

(G) Construction of the San

Vitores substation and

transmission lines by the

Guam Power Authority in

the Tumon Bay area. $5,900,000 (h) Selection of Bank. In view of the urgency for the arrangement of the loan pursuant to this Section, subject to terms and conditions as outlined in this Act, the Governor is hereby authorized to utilize such method as he deems appropriate for the selection of the bank or banks in connection with the arrangement of the loan.

(i) Approval of GEDA. Section 2103(k) of Title 12, Guam Code Annotated, provides that agencies and instrumentalities of the government of Guam shall issue obligations only by means of and through the agency of the Guam Economic Development Authority (“GEDA”), and that GEDA shall not sell any obligation without the approval of the legislature of the terms and conditions of the issuance of the obligations. In view of the urgency for the arrangement of the loan pursuant to this Section, the original direct loan authorized hereunder is exempted from the requirement of said Section 2103(k), but on the rollover of such loan into a bond issue the section will fully apply.

(j) Approval of the Legislature. This Legislature, pursuant to this section and pursuant to subsection 2103(k), Title 12, Guam Code Annotated, hereby approves the loan of the government of Guam in the principal amount not to exceed Fifty-Two Million Nine Hundred Dollars ($52,900,000) as authorized by this Act; provided, that the terms of the loan are not inconsistent with this Act.