Guam § 22424 - General Obligation Bond for Capitol Building.

§ 22424. General Obligation Bond for Capitol Building.

(a) Authorization of Issuance of General Obligation Bonds

for Capitol Building. The Governor of Guam may be authorized

to issue one (1) or more series of general obligation bonds of the

government of Guam in an aggregate principal amount not to

exceed Thirty Six Million Dollars ($36,000,000) to undertake the

construction of a capitol building and paying expenses incurred in

connection with the issuance of such bonds; provided, however,

that the issuance of the bonds shall not cause a violation of the

debt limitation provisions of 48 U.S.C. § 1423a (§ 11 of the

Organic Act of Guam.)

(b) Terms and Conditions Determined by Certificate. The

terms and conditions of the bonds shall be as determined by the

Governor by the execution of a certificate 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 Section, and that the bonds shall mature not later than

December 1, 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 ten percent (10%) per annum. The certificate of the

Governor shall designate the amount of each maturity of bonds

issued for construction of the capitol building but shall also permit

reallocation and redesignation of such bonds.

(c) Valid and Binding General Obligation. Any bonds autho-

rized by this Section shall constitute the valid and binding general

obligations of the government of Guam. The government of Guam

pledges its full faith and credit for the punctual payment of both

principal of interest on the bonds. There shall be collected

annually in the same manner and at the same time as government

revenue for other purposes is collected, such sum as is required to

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pay the principal of and interest on the bonds. All officers charged

by law with any duty in the collection of the revenues of the

government shall do every lawful thing necessary to collect such

sum. The validity of any such bonds shall not be affected by the

validity or regularity of any proceedings for the implementation

of the capital project funded by the bonds.

(d) Appropriations from the General Fund. There may be

authorized to be appropriated from the General Fund such sums

as will equal in each year the amount of money necessary to pay

the principal and interest on such bonds.

(e) Additional Parity Bonds. Nothing in this Section shall be

construed to prevent the government of Guam from issuing, after

appropriate enabling legislation, other obligations of the

government secured by the general obligation of the government

on a parity with the bonds authorized by this Section.

(f) Waiver of Immunity. Notwithstanding any substantive or

procedural provision of Chapter 6 of Title 5, Guam Code

Annotated, the government of Guam waives immunity from any

suit or action in contract on the bonds, but does not waive

sovereign immunity as to the personal liability of elected officials

and employees of the government of Guam.

(g) Form of Bonds; Covenants; Appointment of Fiduciaries.

The technical form and language of the bonds, including

provisions for execution, exchange, transfer, registration, paying

agency, lost or mutilated bonds, negotiability, cancellation and

other terms or conditions not inconsistent with this Section,

including covenants relating to the collection of revenues, shall be

as specified in the certificate executed by the Governor

authorizing the issuance of the bonds. The certificate may appoint

one (1) or more trustees, co-trustees or other fiduciaries authorized

to receive and hold in trust the proceeds of the bonds and monies

relating thereto, to protect the rights of bondholders and to

perform such other duties as may be specified in the certificate.

The Governor is also authorized to execute, on behalf of the

government of Guam, any appropriate agreements, certificates or

other instruments relating to the bonds and the sale of the bonds.

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(h) Authorization for Credit Enhancement. The Governor

may be authorized to enter into such contracts or agreements with

such banks, insurance companies or other financial institutions as

he determines are necessary or desirable to improve the security

and marketability of the bonds issued under this Section. Such

contracts or agreements may contain an obligation to reimburse,

with interest, any such banks, insurance companies or other

financial institutions for advances used to pay principal of or

interest on the bonds. Any such reimbursement obligation shall be

a general obligation of the government of Guam, and any such

advance, if necessary, shall be treated as creating a reimbursement

obligation issued to refund the bonds.

(i) Use of Proceeds from the Sale of the Bonds. Proceeds

from the sale of the bonds may be used solely to construct and

equip a capitol building, to establish necessary reserves, and to

pay expenses relating to the authorization, sale and issuance of the

bonds, including, without limitation, printing costs, costs of

reproducing documents, bonds insurance premiums,

underwriting, legal and accounting fees and charges, fees paid to

banks or other financial institutions providing credit enhancement,

costs of credit ratings, fees and charges for execution,

transportation and safekeeping of bonds and other costs, charges

and fees in connection with the issuance, sale and delivery of the

bonds.

(j) No Personal Liability. No employee or elected official of

the government of Guam shall be individually or personally liable

for the payment of any amounts due on any bonds issued under

this Section, or for any other liability arising in connection with

the bonds; provided, however, that nothing in this Section shall

relieve any employee or elected official from the performance of

any ministerial duty required by law.

(k) Legislative Approval. No bonds may be issued under this

Section without specific prior approval of the Legislature.