Guam § 14243 - Approval of Guam Waterworks Authority WIFIA, USDA and Commercial Bank Loans.

§ 14243. Approval of Guam Waterworks Authority WIFIA, USDA and Commercial Bank Loans.

(a) I Liheslaturan Guåhan, pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby

authorizes the Guam Waterworks Authority (GWA) to obtain financial assistance from the United States

Environmental Protection Agency, an agency of the United States of America, acting by and through the

Administrator of the Environmental Protection Agency, with an address at 1200 Pennsylvania Avenue NW,

Washington, D.C. 20460 (the “WIFIA Credit Provider”), under the Water Infrastructure Finance and

Innovation Act, as amended by Section 1445 of the Fixing America’s Surface Transportation Act of 2015,

as further amended by Section 5008 of the Water Infrastructure Improvements For the Nation Act of 2016

and by Section 4201 of America’s Water Infrastructure Act of 2018 (collectively, as the same may be

amended from time to time, the “WIFIA Act”), which is codified as 33 U.S.C. §§ 3901-3914, in one (1) or

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more series or issues of loans; provided, that the issuance, terms and conditions of the debt, the indenture

or loan agreement (in either event, a “WIFIA Credit Agreement”) pursuant to which the loans are to be

issued, and any shall have been approved by the Guam Public Utilities Commission; and further provided,

that such loans may be obtained in the principal amount necessary to fund any eligible GWA project costs

under the WIFIA Act including, but not limited to, financing capital improvement projects referenced in

GWA’s master plan or other studies contemplating additional capital improvement projects from time to

time, but not to exceed an aggregate principal amount of Four Hundred Million Dollars ($400,000,000).

Such loans shall each have a final maturity not later than thirty-five (35) years after the first draw date

applicable to such loan or loans, 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. In addition, any such indebtedness may be

incurred subject and subordinate or parity 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, but may be on a parity with other subordinate obligations.

(b) I Liheslaturan Guåhan, pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby

authorizes GWA to issue bond anticipation notes to be issued in anticipation of the issuance of the loans

referenced in Subsection (a) hereof and of the receipt of the proceeds of issuance thereof, for the purposes

for which such loans have been authorized. The maximum principal amount of the notes shall not exceed

an aggregate principal amount of Five Hundred Sixty Million Dollars ($560,000,000) and, provided that

the issuance, terms and conditions of the bond anticipation notes shall have been approved by the Guam

Public Utilities Commission and the Guam Consolidated Commission on Utilities, that the sale of the bonds

shall be approved by the Board of Directors of GEDA. The authorization, issuance, and details of the notes

shall be governed by this Chapter with respect to bonds insofar as the same may be applicable, provided

that:

(1) each note, together with all renewals and extensions thereof, or refundings thereof by other

notes issued under this Section, shall mature within five (5) years from the date of the original note;

and

(2) each note shall be secured proceeds from draws from the loan or loans referenced in

Subsection (a) hereof.

(c) In the alternative to or in connection with the WIFIA loan referenced herein, the I Liheslaturan

Guåhan, pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby authorizes GWA to

obtain financial assistance from the United States Department of Agriculture (USDA), from time to time

through loan programs offered by the USDA, including, but not limited to, through its Rural Utility, Rural

Development and its Community Facilities Programs, in one (1) or more series or issues of loans; provided,

that the issuance, terms and conditions of the debt, the indenture or loan agreement (in either event, a

“USDA Credit Agreement”) pursuant to which the loans are to be issued, and any shall have been approved

by the Guam Public Utilities Commission, and further provided, that such loans may be obtained in the

principal amount necessary to fund any eligible GWA project costs authorized by the USDA including, but

not limited to, financing capital improvement projects referenced in GWA’s master plan or other studies

contemplating additional capital improvement projects from time to time, but not to exceed an aggregate

principal amount of Four Hundred Million Dollars ($400,000,000). Such loans shall each have a final

maturity not later than thirty-five (35) years after the first draw date applicable to such loan or loans, 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. In addition, any such indebtedness may be incurred subject and subordinate

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or parity 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, but may be on a parity with other subordinate obligations.

(d) In the alternative to or in connection with the WIFIA loan referenced herein, the I Liheslaturan

Guåhan, pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby authorizes GWA to

obtain financial assistance from commercial banks operating in Guam, in one (1) or more series or issues

of loans; provided, that the issuance, terms and conditions of the debt, the indenture or loan agreement (in

either event, a “Credit Agreement”) pursuant to which the loans are to be issued, and any shall have been

approved by the Guam Public Utilities Commission, and further provided, that such loans may be obtained

in the principal amount necessary to fund any eligible GWA project costs, including, but not limited to,

financing capital improvement projects referenced in GWA’s master plan or other studies contemplating

additional capital improvement projects from time to time, but not to exceed an aggregate principal amount

of Four Hundred Million Dollars ($400,000,000). Such loans shall each have a final maturity not later than

thirty-five (35) years after the first draw date applicable to such loan or loans, and shall bear interest not

exceeding seven percent (7%) per annum. In addition, any such indebtedness may be incurred subject and

subordinate or parity 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, but may be on a parity with other subordinate obligations.