Guam § 22403 - Authorization to Borrow for Agat Jr. High School.

§ 22403. Authorization to Borrow for Agat Jr. High School.

(a) The Governor may negotiate a loan of not to exceed Three

Million Dollars from the Farmers Home Administration, U.S.

Department of Agriculture. The term of the loan shall not be for

more than 40 years at a rate of 5% interest per annum. The money

borrowed shall be used to complete construction of Agat Junior

High School.

(b) The Governor is authorized to execute any promissory

note and/or such other instrument(s) of indebtedness which may

be required by the Farmers Home Administration for purposes of

obtaining the $3,000,000 loan referenced in subsection (a) of this

Section. The Governor is also authorized to assign, pledge or grant

a security interest in the real property tax revenue payable to the

government of Guam in 11 GCA § 24103 or in the funds

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appropriated and hereafter appropriated to Agat Junior High

Sinking Fund, referenced in subsection (c) of this Section. The

Legislature shall approve the terms of the loan by resolution prior

to execution of any note or such other instrument(s) of

indebtedness.

(c) There is created within the Treasury of Guam the Agat

Junior High Sinking Fund. The fund shall be used to pay the

government’s annual obligation to Farmers Home Administration

on the loan to reconstruct Agat Junior High School and shall exist

only until the principal and the interest be fully paid. The sum of

$200,000 is hereby appropriated annually, until the principal and

interest of the $3,000,000 loan from Farmers Home

Administration be fully paid, from revenue collected pursuant to

11 GCA § 24103 to the Agat Junior High Sinking Fund. Such

sums as are necessary to meet the annual obligation on the loan is

appropriated from the Agat Junior High Sinking Fund. If the

promissory note and/or such other instruments(s) of indebtedness

are not secured by an assignment, pledge, or security interest in

the funds appropriated and hereinafter appropriated to the Agat

Junior High Sinking Fund, then at the end of each fiscal year, any

balance of the Fund is reverted to the General Fund.

(d) The Treasurer of Guam shall make necessary payments

to the Farmers Home Administration in accordance with the terms

and conditions of the instrument(s) of indebtedness from the Agat

Junior High Sinking Fund.