Guam § 50103 - Procedure for Issuing Bonds Pursuant to 12 GCA 50103 (k).

§ 50103. Procedure for Issuing Bonds Pursuant to 12 GCA 50103 (k).

(a) Bond Counsel. An experienced bond counsel shall be retained for each bond obligation issued by

the Authority following General Services Administration procurement guidelines dealing with legal

services. A bond counsel may be either kept on retainer or contracted separately for each issue. The

Authority’s bond counsel shall represent only the Authority and the government of Guam in each issue and

neither the bond counsel nor any member of counsel’s firm shall represent any other interest in each bond

issue. The bond counsel shall be involved at every level of decision making regarding bond issues.

(b) Underwriters. The Authority shall select underwriters based on the following procedures:

(1) Underwriters shall be chosen from replies to requests for proposals (RFPs) issued by the

Authority. A minimum of five (5) underwriters shall be sent RFPs for each bond issue. A minimum of

two (2) replies to RFPs must be received or the RFPs shall be cancelled and new RFPs issued.

(2) All of the replies to RFPs shall be received at a location to be determined by the Authority

prior to issuance of the RFPs and maintained there unopened until the date set for opening. One (1)

person shall be responsible for the custody of the proposals to ensure the integrity of the process.

(3) The Authority shall designate one (1) person to handle all communications with underwriters

to ensure continuity of information. All communications with underwriters shall be channeled through

this individual who shall speak for the Authority. Copies of all communications to and from the

designee and the underwriters shall be made available to all members of the Board.

(4) Members of the Board shall not discuss with underwriters any proposal currently under

consideration.

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(5) The Authority shall set a date for the opening of the replies to RFPs from underwriters. The

presence of a quorum of the Board shall be required for the initial opening of the replies to RFPs and

sufficient copies of the replies to RFPs shall be made available to the Board. After the replies to RFPs

are distributed to the Board, the meeting may be adjourned and reconvened but only within 15 (fifteen)

working days of the opening of the replies to RFPs.

(6) Upon selection of an underwriter, the selected and unselected underwriters shall be

immediately notified of the action. No modifications to the replies of RFPs submitted by the

underwriters shall be allowed after opening, except that, if the Authority narrows the selection to two

(2) or more underwriters, final presentations by the narrowed group of underwriters shall be presented

to the Board at a time and place to be determined by the Board, and minor modifications and

clarifications of the proposals will be permitted. If the selection process is carried over to a meeting

outside of Guam, this final selection process shall either be videotaped or voice recorded for

presentation to the whole Board. After reviewing the final presentations of the narrowed group of

underwriters, the Board shall, within 10 (ten) working days of final presentation, select either one (1)

managing underwriter or two (2) co-managing underwriters for the bond issue.

(c) Trustee. Trustees shall be chosen from replies to RFPs issued by the Authority. RFPs shall be sent

to a minimum of three (3) trustees for each bond issue. The Authority shall establish a deadline which will

give interested parties sufficient time to prepare replies to RFPs and sufficient time to transmit the replies

to a specified location. Replies shall be opened at a specified location and time by a specified designee of

the Board, in accordance with Guam’s open government laws. A minimum of two (2) replies to RFPs must

be received or the RFPs shall be cancelled and new RFPs issued.

(d) Depository. Depositories shall be chosen from replies to RFPs issued by the Authority. RFPs shall

be sent a minimum of three (3) depositories for each bond issue. The Authority shall establish a deadline

which will give interested parties sufficient time to prepare replies to RFPs and sufficient time to transmit

their proposals to a specified location. Replies shall be opened at a specified location and time by a specified

designee of the Board, in accordance with Guam’s open government laws. A minimum of two (2) replies

to RFPs must be received or the RFPs shall be cancelled and new RFPs issued.

(e) Municipal Paying Agent. Municipal paying agents shall be chosen from replies to RFPs issued by

the Authority. RFPs shall be sent to a minimum of three (3) reputable municipal paying agents for each

bond issue. The Authority shall establish a deadline which will give interested parties sufficient time to

prepare replies to RFPs and sufficient time to transmit the replies to a specified location. Replies shall be

opened at a specified location and time by a specified designee of the Board, in accordance with Guam’s

open government laws. A minimum of two (2) replies to RFPs must be received or the RFPs shall be

cancelled and new RFPs issued.

(f) Financial services. In lieu of the provisions of § 50103 (c), (d) and (e), the Authority may opt to

choose one firm to perform all financial services described in § 50103 (c), (d) and (e). The provider of

financial services shall be chosen from replies to RFPs issued by the Authority. A minimum of five (5)

firms shall be sent RFPs for each bond issue. A minimum of two (2) replies to RFPs must be received or

the RFPs shall be cancelled and new RFPs issued.

(g) GEDA shall undertake its best efforts to cause a portion of any bonds issued or sold by the Guam

Economic Development Authority on behalf of the government of Guam or any entity of the government,

to be offered for sale to residents of Guam, as well as to residents of other jurisdictions, if and to the extent

that such offer and any sales resulting from such offer do not increase the costs to the government of issuing

and repaying such bonds.

GEDA shall announce such bond issue in the local media outlets and solicit interest from local financial

institutions, investment companies, and investor representatives. GEDA shall accept pre-issuance

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subscription orders for such bonds prior to such bonds being offered to the non-local market. Upon the

determination of market pricing of such bonds, GEDA shall notify the local purchaser who shall inform

GEDA of a decision and commit to the purchase and execute all documents necessary to complete such

purchase.