Guam § 8113 - Interim Debt.

§ 8113. Interim Debt.

(a) Procurement by GPA of the generators and ancillary equipment, land and buildings will require

long-term financing in the form of revenue bonds or capital leases, or a combination of both.

(b) Pending issuance of revenue bonds, in order to identify funds sufficient to enable GPA forthwith

to enter into contracts and obligations incident to procurement and installation of the generators and

ancillary equipment, and to enable GPA to obtain or provide for interim funding, I Maga’håga/Maga’låhi

may guarantee the repayment by GPA of such interim debt in an amount not to exceed $45.6 million. In

order to reduce the amount of interim debt, I Maga’håga/Maga’låhi is authorized to transfer to GPA from

any funds of the government of Guam or appropriated by statute, excluding appropriations to the Judicial

or Legislative Branches, such sums as he may identify as available, without interest, to be repaid not later

than September 1, 1993 from fund proceeds herein authorized. If I Maga’håga/Maga’låhi identifies other

sources which require Legislative approval he shall promptly introduce a bill requesting approval to use

these funds. All sums advanced by the government of Guam to expedite the interim financing loan shall be

repaid promptly from the bond proceeds.

(c) GPA presently has outstanding long-term and other indebtedness which includes that to the Federal

Financing Bank (FFB) with certain restrictive covenants.

(d) Without retirement of the FFB indebtedness, which include covenants preventing parity of new

indebtedness, GPA is at an extreme disadvantage in obtaining additional long-term debt. Further, GPA has

COL 2025-04-22

an existing short term $26,000,000 bank loan which is intended to be replaced by issuance of revenue bonds

at the earliest practicable time, and which should be replaced in order to enhance a new issuance here

authorized. The $20 Million loan to GPA in P.L. 20-112 is hereby converted to a grant with the condition

that the $800,000 interest free annual payment be used for debt service and a source of funding for the long-

term debt.