Guam § 22427 - Government of Guam Loan.

§ 22427. Government of Guam Loan.

(a) Authorization to Borrow. The Governor of Guam, on

behalf of the government of Guam, is authorized to borrow an

aggregate principal amount not to exceed Fifty-Two Million Nine

Hundred Dollars ($52,900,000) to undertake the capital projects

enumerated in subsection (g) of this Section; provided, however,

that incurring this indebtedness shall not cause a violation of the

debt limitation provisions of 48 U.S.C. § 1423(a). The debt may

be incurred and the proceeds expended for the purpose of allowing

the government of Guam to pay for the cost of arranging the loan

and for the purposes described herein.

(b) Terms and Conditions Determined by Loan Agreement.

The terms and conditions of the loan shall be as determined by the

Governor by the execution of a loan agreement authorizing the

loan. The loan agreement shall contain such terms and conditions

as are consistent with this Section. The terms of the loan shall

include the following:

(1) The loan shall be used by the Governor for the

purposes stated herein;

(2) Prepaid charges shall not be levied by the bank or

trust department extending the loan;

(3) The interest rate shall be subject to competitive

negotiations between the Governor and the banks.

(4) Interest derived from the loan shall be exempt from

taxation by the government of Guam.

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(5) All terms of the loan agreement not specifically

defined in the foregoing shall be negotiated by the Governor

in the best interest of the people of Guam.

(6) The duration for the repayment of the loan shall be

as negotiated by the Governor, but shall not exceed twenty

(20) years.

(7) The loan shall be arranged with any bank or

commercial lending institution licensed on Guam; provided,

however, anything to the contrary in this Section

notwithstanding, or any other provision of law, that the terms

of the loan arranged by the Governor as provided by this

Section, may permit the bank or commercial lending

institution licensed on Guam with which such loan is

arranged, to grant participation in such loan, 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, or to any other persons, associations, or

corporations. The exemptions from taxation by the

government of Guam of the interest derived from the loan

shall be preserved to any such participant.

(c) Appropriation from the Tourist Attraction Fund. There is

hereby appropriated from the unencumbered balances of the

Tourist Attraction Fund, notwithstanding anything in 11 GCA