Guam § 14235 - Short Term Borrowing.

§ 14235. Short Term Borrowing.

(a) Pursuant to the agency of GEDA, the Board may at any time or from time to time, by resolution

adopted by a majority of the members of the Board, authorize the Authority to incur indebtedness, including

lines-of-credit, with the approval of I Maga’håga/Maga’låhi, for any lawful purpose for any period not

exceeding ten (10) years evidenced by contract with any person. Any such indebtedness shall be incurred

subject and subordinate to any contractual obligation of the Authority to the holders of any bonds and the

principal thereof and interest thereon may be repaid:

(1) from revenues; or

(2) if incurred for a purpose for which bonds may be issued, from revenues or from the proceeds

of sale of bonds.

The total cumulative amount borrowed pursuant to this Section shall not exceed Thirty Million Dollars

($30,000,000.00). Notwithstanding any other provision of law, the indebtedness specified herein shall not

be subject to taxation by the government of Guam.

(b) Approval of Guam Waterworks Authority Short Term Indebtedness. I Liheslaturan Guåhan,

pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby approves the terms and

conditions of short term debt to be issued by the Guam Waterworks Authority (GWA) pursuant to § 14235,

Article 2, Chapter 14, Title 12, Guam Code Annotated, in one (1) or more series or issues (together with

any related reimbursement obligations); provided that the issuance, terms and conditions of the debt, the

indenture or loan agreement pursuant to which the bonds are to be issued, and any reimbursement agreement

shall have been approved by the Guam Public Utilities Commission, and further provided that such debt

may be issued in the principal amount necessary to fund GWA’s required operating account and operating

reserve account balances, to pay past due operating expenses incurred by GWA, to provide interim

financing for a portion of the costs of the moratorium project as defined in § 14241(g), Article 2, Chapter

14, Title 12, Guam Code Annotated, and to pay expenses incurred in connection with the issuance of such

debt not already included in an existing appropriation for or in the regular budget of any government agency

or instrumentality or public corporation providing any service in connection with the issuance of such

bonds, but not to exceed an aggregate principal amount of Thirty Million Dollars ($30,000,000). Such debt

shall have a final maturity not later than ten (10) years after its date of issuance, shall bear interest at such

rate or rates and be sold for such price or prices as may be approved by the Guam Public Utilities

Commission, and shall have such other terms and conditions as are consistent with the requirements and

limitations provided in said § 14235.