) The annual budget recommendations for governmental operations transmitted from the Governor to the Legislature, or the annual budget of each autonomous agency, shall include an amount for each agency, line or autonomous, as the case may be, for payment of claims made pursuant to this Chapter and generated by the activities of such agency. The amount shall be at least equal to the arithmetic average of amounts paid out of the Government Claims Fund, or operating fund, as the case may be, on behalf of such line or autonomous agency, as determined and recorded by the Department of Administration, or by the autonomous agency, for the three fiscal years immediately preceding the year in which the recommendation is being made. The amounts requested may be decreased by the amount of insurance coverage purchased and in force.

(b) The first such budget request shall be made for the fiscal year following passage of this Chapter. [FY 1985]
(c) Between the passage of this Chapter [Dec. 8, 1983] and Fiscal Year 1985, the budget recommendation required by this Section shall be based upon the amounts paid in claim settlements or judgments on behalf of each line agency during the preceding fiscal year.
(d) Certificates Authorized for COLA Settlement.

(1) The Government of Guam shall finally and permanently implement the settlement agreement entered into between the Government of Guam and the COLA Class as ordered by the Judgment in Rios v. Camacho, Superior Court Case No. SP0206-93. I Liheslatura acknowledges, adopts, and affirms the government’s obligation toimmediately pay all monies due and ordered by said
Judgment and the Stipulation and Order of November 21,
2006.

(2) To expedite payment to COLA claimants in Rios v. Camacho, and in addition to any other available remedies, the Director of Administration shall issue to each COLA Awardee, within thirty (30) calendar days after enactment hereof, a serial Certificate of Claim stating the amount due the awardee, excluding attorney’s fees and costs, but including such terms as would affect the redeemable value of the Certificate, such as the rate of interest on undisputed unpaid government claims of seven percent (7%) per annum calculated from date of settlement, that the Certificate is renewable, and confirmation that the entire amount paid upon redemption shall be exempt from any and all Guam taxes. Plaintiffs’ Attorneys in the Rios case may request and receive a Certificate for no more than fifty percent (50%) of the amount owed them pursuant to the Judgment. The Director of Administration shall inscribe on the Certificates only those names of awardees and corresponding amounts provided by the Guam Retirement Fund, minus attorney’s fees and costs, and shall create and retain a list of Certificates issued. The Director of Administration may request that the Guam Retirement Fund assist in the disbursement of Certificates to claimants, their successors and assignees.

(3) Any person who willfully fails to perform a ministerial duty to prepare or issue Certificates of Claim in a timely manner as directed herein, shall be personally liable for the reasonable attorney’s fees and costs incurred by claimants to legally compel performance.

(4) Said Certificates are evidence of amounts payable by the government of Guam, and are valid until redeemed or replaced by a Certificate issued to a registered successor as subsequently provided in this Section. Certificates may be sold, transferred or assigned to a third party. Any transferee or of a claimant shall have the same rights as said claimant when the government disburses payments pursuant
to the judgment in Superior Court Case No. SP0206-93. The holder must surrender the Certificate to receive payment of the award it represents. If a Certificate is not redeemed by the end of a fiscal year, it shall be reissued to the owner upon demand. Upon the sale, assignment or transfer of a Certificate of Claim, the purchaser, assignee or transferee may register said sale, assignment or transfer with the Department of Administration. The first person to register a sale, assignment or transfer shall have a superior right against all subsequently registered claims to the Certificate and shall be substituted by the Superior Court in place of the claimant in Rios v. Camacho, Superior Court Case No. SP0206-93.

(5) Nothing in this Subsection restricts or eliminates any legal remedies available to COLA claimants as obligees of the Rios Judgment, including the remedies provided by Title 5 Guam Code Ann. § 22415.

(e) Sale of Certificates of Claim in whole or part as General
Obligation Promissory Notes.

(1) Authorization to Borrow. I Maga’låhen Guåhan is authorized to issue General Obligation Promissory Notes (the “”Notes””) not to exceed the total amount of all outstanding and unredeemed Certificates of Claim issued to “”COLA”” Awardees in reference to Superior Court Case No. SP0206-93 and as authorized in Title 5 Guam Code Ann. § 6404(d). The Notes shall be general obligations of the government of Guam secured by the full faith and credit of the government of Guam. I Maga’låhen Guåhan shall within sixty (60) days after the enactment of this Act issue a Request for Proposal for the sale of the general obligation promissory notes authorized herein.

(2) Terms and Conditions. The terms and conditions of the Notes shall be as determined by I Maga’låhen Guåhan; provided that the notes:

(A) shall not be secured by a pledge of Section 30 revenues;

(B) shall be redeemed in full, including accruedinterest within twenty (20) years or thereafter automatically convert to Certificates of Claim subject to the terms and conditions defined in 5 GCA § 6404(d);

(C) shall bear interest at such fixed or variable rate or rates as may be negotiated by I Maga’låhen Guåhan in the best interests of the government, such interest rate shall not exceed eight percent (8%) and shall be computed on a three-hundred sixty-five (365) day calendar year upon the actual amount issued by the government of Guam.

(3) Sale of Promissory Notes.

(A) Sale of the Notes shall be in denominations no less than Five Thousand Dollars ($5,000.00);

(B) Investor purchase quantity shall not be limited;

(C) Investor access to purchase of the Notes shall be in the following order of priority:

(i) the Government of Guam Retirement
Fund;

(ii) residents of Guam;

(iii) banks or other financial institutions licensed to conduct business on Guam;

(iv) other entities licensed to conduct business on Guam;

(v) all other interested institutions as determined by I Maga’låhen Guåhan.

(4) Use of Proceeds From the Sale of the Notes. The proceeds from the sale of the Notes shall only be used and are hereby appropriated to redeem and pay outstanding Certificates of Claims issued to COLA awardees in Superior Court Case No. SP0206-93.

(5) Approval by the Guam Economic Development
Authority. Notes authorized in this section shall not be sold
until the Board of Directors of the Guam Economic Development Authority approves the terms and conditions of the Note sale.

(6) Approval of Voters Not Required. The Notes shall not be subject to the approval of voters of Guam.

(7) Continuing Annual Appropriation of Principal and Interest. Effective October 1, 2011 and each October 1 thereafter, there is hereby appropriated sums from the General Fund required for all payments of principal and interest based on a maturity schedule to repay any general obligation promissory notes authorized in § 6404(e)(1). This annual appropriation shall be a continuing appropriation and shall not lapse at the end of the fiscal year. In addition to any funds specifically appropriated by this Act, all moneys received from any other source as contributions or supplements for repayment of the notes established in this Act, and any interest or income earned, shall be paid into a Fund established for repayment and shall be a continuing appropriation.

SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500.43.. Codified as 5 Guam Code Ann. § 6404. Subsection (d) added by P.L. 29-018:2 (Sept.
24, 2007). Subsection (e) added by P.L. 30-239:4 (Jan. 20, 2011).

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