Guam § 50103 - Purposes and Authorized Activities of Corporation.

§ 50103. Purposes and Authorized Activities of Corporation.

(a) It is the purpose of this Division to create a public non-profit corporation to assist in the

implementation of an integrated program for the economic development of Guam. It is intended for this

Corporation to be a catalyst in the economic development which this Division seeks, aiding private

enterprise without unfairly competing with it. It is a further purpose of this Division to enable the

Corporation to expand the supply of money available in Guam to finance the construction of residential

dwellings, including single family dwellings, multiple family dwellings, condominiums and cooperative

apartments. It is hereby declared that there exists in Guam a substantial and serious shortage of housing in

all categories, and that this shortage is inimical to the health and welfare of the residents of Guam and to

the economic development of Guam. The inadequate supply of such housing results in the continuing

existence and proliferation of substandard and decadent housing, with all its attendant consequences of

disease, crime, injuries, retardation of education, and high costs of services such as police and fire

protection. It will thus serve the public welfare to stimulate an increase in the supply of decent, safe and

sanitary housing, not only insofar as it benefits those who live in such housing but in that such housing will

materially assist in the prevention of crime, the improvement of education, the reduction of hazards from

fire or structurally unsafe buildings, the improvement of the public health and a lowering of the cost of

services. The expansion of the supply of housing in Guam is seriously hindered by a substantial, serious

and continuing shortage of long-term mortgage money, resulting in part from the inability of United States

based insurance companies to provide mortgage money in Guam because of United States income tax

reasons. It is, therefore, imperative that mortgage financing be made available and the supply of available

money to finance housing construction be increased. Without the assistance contemplated in this Division,

the financing of or construction of decent, safe and sanitary housing in sufficient amounts to house the

residents of Guam cannot be accomplished. A public exigency exists which makes the assistance

contemplated by this Division a public purpose, and the necessity in the public interest for the provisions

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hereinafter enacted is hereby declared as a matter of legislative determination. I Liheslatura has also found

and determined that there exists an acute shortage of adequate, modern and efficient hospital facilities in

Guam and that unless measures are adopted to alleviate such conditions, the need for such facilities will

become increasingly more urgent and serious. It is hereby declared that the safety, health and welfare of

the people of Guam requires the provision of adequate, modern and efficient hospital facilities in the various

parts of Guam, and that it is the policy of Guam and a purpose of this Division to provide the means

necessary for the acquisition, construction and provision of hospital facilities to serve the general public

and to make reasonably accessible to all the people of Guam modern and efficient hospital facilities. I

Liheslatura has further found and declared that the financing, acquisition, construction, reconstruction,

rehabilitation or improvement of hospital facilities and the provision of such facilities as may be incidental

or appurtenant thereto are public uses and public purposes for which public money may be expended and

that the enactment of this Division is necessary and proper for effectuating the purposes hereof as

hereinafter provided. I Liheslatura hereby further finds and determines that there exists in Guam conditions

of substantial and persistent unemployment, thus adversely affecting the economy of our island and the

prosperity, safety, health and general welfare of its inhabitants and their standard of living; and that the

availability of financial assistance and suitable facilities are important inducements to new and varied

employment promoting enterprises to locate in Guam, and to existing enterprises to remain and expand in

our island. The provision of buildings, structures and other facilities to increase opportunity for employment

in manufacturing, industrial, commercial, recreational, retail and service enterprises in Guam is in the public

interest and is a public purpose to induce and accelerate opportunity for employment in such enterprises. In

order to aid in supplying these needs and to assist in the immediate reduction of unemployment and to

provide sufficient employment for the citizens of Guam in the future, it is necessary and in the public

interest to aid and encourage the immediate commencement of new construction projects of all types. The

availability of financial assistance by Guam will reduce present unemployment and improve future

employment opportunities by encouraging and inducing the undertaking of such construction projects, the

location, retaining or expanding of employment promoting enterprises with Guam. By virtue of Guam’s

architectural and cultural heritage, its positions as principal centers of communication and transportation,

this government is capable of ameliorating the conditions of deterioration which impede sound community

growth and development; and that building a proper balance of industrial and commercial facilities and

increasing the attractiveness of Guam to persons of all income levels is essential to Guam as a desirable

place to live, work, shop and enjoy life’s amenities; that the accomplishment of these objectives is beyond

remedy solely by regulatory process and cannot be dealt with effectively by the ordinary operations of

private enterprise without the powers provided herein, and that the exercise of the powers herein provided

is critical to continuing the process of revitalizing Guam and will serve an urgent public use and purpose.

In order to aid in remedying the aforesaid conditions and to further and implement the purposes of this

Division, the authority and powers conferred under this Division and expenditure of money pursuant thereto

constitute a serving of a valid public purpose and that enactment of the provisions of Article 5 of this

Division is in the public interest and for the public benefit and good and is so declared to be as a matter of

expressed legislative determination.

(b) The Corporation is authorized to control and implement that part of the basic plan for the economic

development of Guam, assigned to it by I Maga’hågan/Maga’låhen Guåhan. The Corporation shall also be

an active participant in the development of said basic plan.

(c) The Corporation is authorized to conduct or cause to be conducted research into natural resources,

experiments, marketing methods and export possibilities, and to make known and publicize the results of

such activities; provided, however, that when the Corporation proposes to enter into any research or similar

investigative activity, it shall first ascertain that such activity is not being duplicated elsewhere in the

government of Guam.

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(d) The Corporation is authorized to promote investments of entrepreneurial capital in Guam, if need

be form and operate its own industries, invest in and provide technical assistance in support of its objectives,

develop and maintain facilities for lease or sale and provide for the expansion of agricultural, industrial,

hospital, housing and tourist facilities through financial assistance and other means.

(e) Except as specifically prohibited herein, the Corporation is authorized to make loans or guarantees

of loans to any persons, firm, partnership or corporation licensed to do business in Guam in furtherance of

the purposes and activities stated in this Division. All loans so made shall be of such sound value or so

secured as to reasonably assure repayment, or shall be of such vital need to the economy of Guam as to

warrant additional risks or subsidies. Each loan made by the Corporation may be sold to a commercial

lending institution for a sum not less than the principal balance of said loan and the proceeds thereof

returned to the capital fund of the Corporation, subject to the terms of any resolution of the Board of

Directors of the Corporation authorizing the issuance of revenue bonds. Each loan made by the Corporation

shall include, wherever possible, an option on the part of the Corporation to convert up to fifty percent

(50%) of the total loan so made into equity of one form or another.

(f) The Corporation is authorized to issue, sell, or dispose of revenue bonds and other obligations from

time to time under such terms and conditions as I Liheslaturan Guåhan, by appropriate legislation may

prescribe. The proceeds of such bonds and obligations shall be used solely to finance specifically authorized

corporate programs. All fees that the Corporation may be eligible for resulting from its role as the Central

Financial Manager for the government of Guam shall be paid from the source of repayment for the

refinancing of bonds and other obligations, and shall only be included in the amount to be borrowed for

new bond issues if the fees are to be included as part of the first and second year’s debt service as a

“principal only” or “reduced interest” payment.

(g) The Corporation is authorized to invest its funds in any enterprise, undertaking or other activity

which, in its judgment, will further development of desirable agriculture, industry, hospital facilities,

housing and commerce, and of tourism in Guam.

(h) The Corporation is authorized to obtain land belonging to the government of Guam as required to

carry out its purposes and objectives, under such terms and tenure as I Liheslatura, by appropriate

legislation, may prescribe.

(i) The Corporation is authorized to purchase from any person, firm, corporation or governmental

entity, and to refinance, mortgages on residential real property, including single family dwellings, multiple

family dwellings, condominiums and cooperative apartments, which are insured or guaranteed by an agency

or instrumentality of the United States of America, by Guam, or by any other person, firm, corporation or

governmental entity approved by the Board of Directors of the Corporation. The Corporation is also

authorized to make commitments to purchase mortgages, conditioned upon the insurance of such mortgages

by an agency or instrumentality of the United States of America, by Guam, or by any other person, firm,

corporation or governmental entity approved by the Board of Directors of the Corporation.

Notwithstanding anything to the contrary herein, the Corporation is not authorized to make direct loans to

any person, firm, corporation or governmental entity on residential real property, including single family

dwellings, multiple family dwellings, condominiums and cooperative apartments.

(j) The Corporation is designated and authorized to be a development company as that term is defined

in §662 of Title 15 of the United States Code.

(k) The Corporation shall act as a central financial manager and consultant for those agencies or

instrumentalities of the Government requiring financial guidance and assistance. Such technical assistance

by the Corporation shall include, but not be limited to, obtaining of funds through bond or other obligations,

structuring such bond issuances, preparation and dissemination of financial and investment information,

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including bond prospectuses, development of interest among investment bankers and bond brokers,

maintenance of relationships with bond rating agencies and brokerage houses and, generally, acting as the

centralized and exclusive financial planner and investment banker for all the agencies and instrumentalities

of the Government to include, but not be limited to, such public corporations as the Guam Economic

Development and Commerce Authority, the Jose D. Leon Guerrero Commercial Port of Guam, the Antonio

B. Won Pat International Airport Authority, Guam, the Guam Power Authority, the Guam Memorial

Hospital Authority, the University of Guam, the Guam Waterworks Authority and all other agencies or

instrumentalities of the Government given the power, now or in the future, to issue and sell bonds or other

obligations for the purpose of raising funds. Such agencies or instrumentalities of the Government shall

issue bonds and other obligations only by means of and through the agency of the Corporation, and each

such agency or instrumentality shall furnish the Corporation long-term estimates of financial needs so that

the Corporation can coordinate a long-term plan for obtaining necessary funds for all such agencies and

instrumentalities on a rational, non-competitive and efficient basis. The Corporation shall not issue or sell

any bond without the approval of I Liheslatura of the terms and conditions of the bonds. For the purpose

of this Subsection, the terms bond or other obligations do not include an instrument evidencing debt for a

term of one (1) year or less. The provisions of this Section whereby the Corporation shall act as a central

financial manager and consultant for those agencies requiring financial assistance shall not apply to those

bonds or obligations which are sold by or to an agency of the Government of the United States, however,

the provisions of this Section where I Liheslatura must approve the terms and conditions of the issuance of

the bonds shall apply to said bonds or obligations. The provisions of this Subsection shall not apply to

bonds or other obligations issued pursuant to Article V or Article VI of this Division on or before March

31, 1984, provided such bonds or other obligations are secured by a pledge of and lien upon the revenues

and other funds or moneys derived from the projects or programs financed by the proceed of the sale of

such bonds or other obligations and not by revenues and other funds or moneys derived from other projects

or programs of the Corporation.

(l) The Corporation is authorized to make loans or to guarantee loans to non-profit cooperative

associations licensed to do business in Guam in furtherance of the purposes and activities stated in this Act.

All loans or guarantees so made shall be of such sum, value or so secured as to reasonably assure repayment

or shall be of such vital need to the economy of Guam as to warrant additional risk or subsidies. As used in

this subsection, non-profit cooperative association means any corporation organized under the provisions

of 18 GCA Chapter 13.

(m) The Guam Economic Development Agency (GEDA) shall be responsible for actively promoting

Guam as a location for the establishment of Export trading companies.

(n) The Authority shall promote and encourage the expansion and development of markets for the

products of Guam.

(o) The Authority shall promote and encourage the location and development of new businesses on

Guam, as well as the retention and expansion of existing businesses, with particular emphasis upon

encouraging the tourist and the large-scale fisheries industries.

(p) An individual or business shall be ineligible for GEDA loans, leases, grants or other assistance if

that individual or business, or any of its officers and/or directors, owners, partners, or shareholders that

have more than five percent (5%) ownership interest in said business, including indirect ownership or other

interest through proxy or trust, or sister parent or subsidiary ownership interest(s), personally or through a

relative within one (1) degree of consanguinity, has:

(1) a record of delinquency that results in loan default on financial assistance obtained from

GEDA or any other instrumentality of the government of Guam, unless borrower fully honored a work-

out agreement to the satisfaction of the creditor;

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(2) failed to meet and fulfill the terms and conditions of receiving GEDA assistance;

(3) a past due or unpaid civil judgment in the Superior Court of Guam; or

(4) engaged in any activity that has resulted in conviction of a felony or a crime of moral turpitude

in the Courts of Guam, the United States and its territories, or foreign jurisdiction. This Section shall

not apply in the event that the prosecution is dismissed with prejudice.