Guam § 221402 - Compact Impact Grant Anticipation Bonds.

§ 221402. Compact Impact Grant Anticipation Bonds.

(a) Subject to the provisions of this Article, I Maga’lahi, [the

Governor] through the Guam Economic Development and

Commerce Authority (hereinafter ‘GEDCA’), may issue Compact

Impact Grant Anticipation Bonds for the purposes of financing the

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construction, repair and refurbishing of public school buildings,

the replacement of the CT Scan System and the establishment of

an endoscopy suite of the Guam Memorial Hospital, the expansion

and the redesign of the emergency medical department at the

Guam Memorial Hospital Authority, the expansion of the

Department of Public Health and Social Services regional

community health clinics or the construction of new ones, and the

upgrading of the Department of Correction’s Adult Correctional

Facility (hereinafter ‘DOC ACF’).

(b) (1) The power to fix the date of sale of the Compact

Impact Grant Anticipation Bonds, to award and sell the

Compact Impact Grant Anticipation Bonds, to fix interest

rates, and to take all other action necessary to sell and deliver

the bonds shall be delegated by I Maga’lahi to GEDCA.

(2) (A) GEDCA shall issue the Request for Proposals

for the Compact Impact Grant Anticipation Bonds,

within fifteen (15) days after the enactment of this

Subsection, based on the following terms and

conditions:

The terms and conditions of the bonds shall be as

determined by GEDCA by the execution of a certificate,

or indenture authorizing the issuance of the bonds upon,

or prior to the issuance of the bonds; provided, however,

that such terms and conditions shall be consistent with

this Article, and that the bonds shall mature not later

than the year 2024, and shall bear interest at such rates

and be sold for such price or prices, as shall result in a

yield to the bondholders not exceeding seven percent

(7%) per annum.

(B) GEDCA shall be authorized to receive bids or

proposals on the Compact Impact Grant Anticipation

(c) (1) Subject to the provisions of this Subsection (3), the

principal of and interest on the Compact Impact Grant

Anticipation Bonds shall be payable solely from:

(A) money available as Compact Impact Aid for

Guam under Section 104(c)(6) of U.S. Public Law 99-

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239, and as recently reauthorized in U.S. Public Law

108-188 for the next twenty (20) years; and

(B) any other revenues, funds, or other security

pledged for such purpose that do not constitute revenues

or funds of the government of Guam.

(2) The owners or holders of the Compact Impact Grant

Anticipation Bonds may not look to any other revenues of

the government of Guam for the payment of the bonds.

(3) The method of financing shall be non-recourse to,

and require no credit support by the government of Guam.

(d) (1) GEDCA shall issue Compact Impact Grant

Anticipation Bonds pursuant to a certificate executed by

GEDCA, a trust indenture between GEDCA and any

commercial bank or trust company having full trust powers,

or any other instrument issued by GEDCA.

(2) As GEDCA deems appropriate, the certificate, trust

indenture, or other instrument authorizing the Compact

Impact Grant Anticipation Bonds may contain such

provisions setting forth the rights and remedies of the owners

or holders of the Compact Impact Grant Anticipation Bonds,

may contain such provisions for protecting and enforcing the

rights and remedies of the owners or holders of the Compact

Impact Grant Anticipation Bonds as GEDCA deems

appropriate, and may contain such other provisions that

GEDCA deems appropriate for the security of the owners or

holders of the Compact Impact Grant Anticipation Bonds.

Such provisions may include, but not be limited to,

provisions regarding letters of credit, insurance, stand-by

credit agreements, or other forms of credit ensuring timely

payment of the Compact Impact Grant Anticipation Bonds,

including the redemption price or the purchase price, and

provisions regarding the reimbursement of providers of such

credit out of revenues available for the payment of principal

of and interest on the Compact Impact Grant Anticipation

Bonds for any amounts paid by such providers with respect

to such bonds.

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(e) The Compact Impact Grant Anticipation Bonds may be

issued in such aggregate principal amount, may be issued in one

(1) or more series, may bear such dates, may be in such

denomination or denominations, may mature on any date or dates,

may mature in such amount or amounts, may be in such form, may

be payable at such place or places, may be subject to such terms

of redemption with or without a premium, may contain such

provisions as GEDCA deems appropriate regarding insurance to

ensure the timely payment of the bonds, and may contain such

other provisions not inconsistent with the provisions of this

Article as GEDCA may determine.

(f) The rate or rates of interest borne by the Compact

Impact Grant Anticipation Bonds may be fixed, adjustable, or

variable or any combination thereof without regard to any interest

rate limitation appearing in any other laws of Guam. If any rate

or rates are adjustable or variable, the standard, index, method, or

formula shall be determined by GEDCA.

(g) Compact Impact Grant Anticipation Bonds may be sold

at public or private sale and may be sold at, above, or below the

principal amounts thereof. The sale of such bonds shall not be

subject to the Procurement Law.