Guam § 22413 - Line of Credit for the General Operations.

§ 22413. Line of Credit for the General Operations.

I Maga’låhen Guåhan, (the Governor) on behalf of the

government of Guam, is authorized to arrange a line of credit not

to exceed Twenty Million Dollars ($20,000,000) with any bank or

commercial lending institution licensed on Guam for the payment

of general operations of the government when the funding of the

deposits for income tax refunds result in a shortfall of cash

required to pay for appropriations for operations in the Annual

Appropriations Act. The terms of the line of credit shall include

the following:

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(a) the line of credit shall be used by I Maga’låhen

Guåhan to pay for general operations in cases where a cash

shortage is eminent and a strong likelihood exists that the

shortage could hamper governmental operations;

(b) prepaid charges shall not be levied by the bank or

trust department for opening the line of credit;

(c) the interest rate shall be subject to competitive

negotiations between I Maga’låhen Guåhan (the Governor)

and the banks; such interest rate shall be computed on a

monthly average and based on the actual amounts extended

to the government;

(d) interest earned by the financial institution providing

the proceeds for the line of credit shall be exempt from

taxation by the government of Guam;

(e) all terms of the line of credit agreement not

specifically defined in the foregoing shall be negotiated by I

Maga’låhen Guåhan [the Governor] in the best interests of

the people of Guam;

(f) funds necessary for such repayment of interest and

principal on loans authorized by this Section of this Article

are appropriated from the General Fund and any pledge

revenues; the duration for repayment of the loan shall be

negotiated by I Maga’låhen Guåhan [the Governor] which

shall not extend beyond two fiscal years;

(g) funds necessary for the repayment of interest and

principal on loans authorized by this Section and (§ 22414 of

this Article are appropriated from the revenue derived from

the tax increase contained in P.L. No. 17-4, and, to the extent

necessary, from other revenues of the government of Guam

and the General Fund; any excess funds from the tax

increases contained in P.L. No. 17-4 shall be used to retire

said debt instruments as additional principal payments and

for no other purposes;

(h) notwithstanding the first Paragraph of this Section,

or any other provision of law, the terms of the line of credit

arranged by I Maga’låhen Guåhan [the Governor] as

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provided by this Section, may permit the bank or commercial

lending institution licensed on Guam with which such line of

credit is arranged to grant participation in such line of credit,

at such times and in such amounts and upon such terms and

conditions as such bank or lending institution licensed in

Guam shall determine, to other banks, or commercial lending

institutions, including those not licensed on Guam, or to any

other persons, associations, or corporations; the exemption

from taxation by the government of Guam of the interest

derived from the line of credit shall be preserved to any such

participant; such participation shall be made by public

offering;

(i) the loan may be secured by pledge of funds or a

guaranty of the government of Guam, including the revenues

derived by the government of Guam under §30 of the Organic

Act of Guam; and

(j) notwithstanding any substantive or procedural

provision of Chapter 6 of Title 5 of the Guam Code

Annotated, the government of Guam hereby waives

immunity from any suit or action in contract on the line of

credit but does not waive sovereign immunity of elected or

appointed officials and employees of the government of

Guam.