Guam § 22414 - Documented Liabilities; Repayment.

§ 22414. Documented Liabilities; Repayment.

Liabilities of the government of Guam documented on May

26, 1984 by Touche, Ross & Co. are recognized by the

Legislature, and are listed as follows:

Due to GovGuam Retirement System $ 16,120,000

Tax refunds (personal income) 13,500,000

Due to various vendors 2,000,000

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Tax refunds, corp. carryback losses 2,500,000

Tax refunds, due to GEDA rebate program 3,000,000

Litigation claims payable 750,000

$ 37,870,000

No payment by the government of Guam is to be made on

any of the liabilities listed above after the effective date of this

Section [June 4, 1984] except as specifically appropriated by the

Legislature or as provided as follows:

(a) Pursuant to § 22413 of this Article, except for

subsection (a) of that Section, the Governor on behalf of the

government of Guam is authorized to borrow an amount not

to exceed Fourteen Million Dollars. This $14,000,000

includes the $4,000,000 authorized to be arranged as a line of

credit subject to approval by the Legislature by Resolution

according to § 22413 of this Article (as found in P.L. 17-4)

and not yet drawn down as of June 4, 1984 and an additional

$10,000,000. The amounts, interest rates, and maturity date

of the borrowing and renewals and replacements thereof of

the entire amount of $14,000,000 authorized to be borrowed

by this Section shall be subject to the approval of the

Legislature by Resolution, with all other terms to be

determined in the discretion of the Governor through

negotiation with the lending institution or institutions

involved. This authorization to borrow additional funds shall

be utilized first to pay the amounts appropriated in sections 6

through 20 of P.L. 17-59 and the balance to pay part of the

obligations above with the obligations listed as

(1) Due to Government of Guam Retirement

System,

(2) Due to various vendors, and

(3) Litigation claims payable to be paid on a

prorated basis.

(b) The expenditures of the Government of Guam for

FY’85 shall be 95% of the expenditures of the Government

of Guam in FY’83 which is 95% of $178,000,000. The

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money realized from the 5% reduction in expenditures shall

be used to retire the liabilities of the government listed above

on a prorated basis.

(c) The debt of $16,120,000 owed by the General Fund

to the Retirement Fund shall be repaid by not later than June

1, 1994 with interest at the average rate of return on

investments of the Retirement Fund in the preceding fiscal

year. Interest and principal shall be paid in quarterly

installments commencing October 1, 1984. Interest shall

accrue from March 31, 1984.

Notwithstanding other provisions of law, the Treasurer of

Guam is directed to and charged with the duties and

responsibilities to insure that all principal and interest is paid on

time preceding all other liabilities and obligations of the

Government of Guam other than loans authorized by this Section

and existing loans authorized by § 22413 of this Article.