Guam § 83110 - Use of Tax-Exempt Bond, Taxable Bond, and Other

§ 83110. Use of Tax-Exempt Bond, Taxable Bond, and Other

Financing Instruments for Financing.

CH. 83 THE GUAM TWENTY-FIRST (21ST) CENTURY

HEALTHCARE CENTER ACT OF 2021

(a) To minimize the financing cost to the Government of

Guam, financing utilized by the contractor/developer to fund the

design, construction, and maintenance of the Guam Twenty-First

Century Healthcare Center shall be through tax-exempt

obligations, taxable bond obligation, or other financial

instruments; provided, such financing is available at interest rates

determined by the Guam Economic Development Authority to be

reasonable and competitive. The Guam Economic Development

Authority shall be the issuer of any financial instruments or

obligations, unless the Guam Economic Development Authority

waives its right to serve as the issuer of financial instruments or

obligations. Alternatively, the contractor/developer may use an

alternative method of financing, including, but not limited to, a

short-term debt, mortgage, loan, federally guaranteed loan or loan

by an instrumentality of the United States of America if such

financing will better serve the needs of the people of Guam. Such

alternative financing shall be approved by I Liheslaturan Guåhan.

The purpose for the requirements of this Section is to assure that

the Government of Guam pays the lowest possible interest rate so

that the cost of the Government of Guam’s financing of the design

and construction of the Guam Twenty-First Century Healthcare

Center, amortized through the lease-back payments from the

Government of Guam to the Guam Economic Development

Authority and/or the contractor/developer, will be lower than

regular commercial rates.

(b) I Liheslaturan Guåhan, pursuant to § 50103(k) of

Chapter 50, Title 12, Guam Code Annotated, hereby authorizes

the Guam Economic Development Authority to issue one or more

additional series of tax-exempt and/or taxable obligations (in any

case, the “bonds”) for the purposes of financing the Guam

Twenty-First Century Healthcare Center in an aggregate principal

amount not to exceed Six Hundred Million Dollars

($600,000,000) for the following purposes:

(1) to finance the design, construction, and/or

maintenance of the Guam Twenty-First Century Healthcare

Center;

(2) to fund a deposit to a debt service reserve fund;

CH. 83 THE GUAM TWENTY-FIRST (21ST) CENTURY

HEALTHCARE CENTER ACT OF 2021

(3) to fund capitalized interest with respect to the bonds;

and

(4) to pay expenses relating to the authorization, sale

and issuance of the bonds, including without limitation,

printing costs, costs of reproducing documents, credit

enhancement fees, underwriting, legal, feasibility, financial

advisory and accounting fees and charges, fees paid to banks

or other financial institutions providing credit enhancement,

costs of credit ratings and other costs, charges and fees in

connection with the issuance, sale and delivery of the bonds,

subject to the following additional conditions:

(A) The terms and conditions of the bonds shall be

as determined by the Guam Economic Development

Authority by the execution of a certificate, trust

agreement or indenture authorizing the issuance of the

bonds; provided, however, that such terms and

conditions shall be consistent with this Section, that the

bonds shall have a final maturity not to exceed forty (40)

years; and an interest rate not to exceed seven percent

(7%).

(B) No bonds authorized by this Section shall be

sold until the Board of Directors of Guam Economic

Development Authority has approved the sale by

resolution, as provided in Chapter 50 of Title 12, Guam

Code Annotated.

(C) The issuance of bonds pursuant to this Section

shall not be subject to the approval of the voters of

Guam.

(c) The Guam Economic Development Authority and the

Government of Guam shall undertake their respective best efforts

to prioritize application of the portion of the net proceeds of the

bonds allocated towards the design, construction, and/or

maintenance of the Guam Twenty-First Century Healthcare

Center first towards the construction of the new GMHA hospital

facility, if and to the extent that such prioritization is practical,

does not impact the marketing of the bonds and does not increase

CH. 83 THE GUAM TWENTY-FIRST (21ST) CENTURY

HEALTHCARE CENTER ACT OF 2021

the costs to the Guam Economic Development Authority and/or

the Government of Guam of issuing and repaying such bonds.