(a) I Liheslaturan Guåhan, pursuant to § 50103(k) of Article 1, Chapter 50 of Title 12, Guam Code Ann., hereby authorizes I Maga’låhen Guåhan to issue one or more additional series of tax-exempt and/or taxable Limited Obligation (Section 30) Bonds of the government of Guam, as provided in this Section, in an aggregate principal amount not to exceed
(1) Forty-five Million Dollars ($45,000,000) for the following: (A) up to Thirty Million Dollars ($30,000,000) for the
express authorization of paying off Guam Memorial Hospital
Authority account payables; and

(B) Fifteen Million Dollars ($15,000,000) for Guam Memorial Hospital Authority Fiscal Year 2017 account payables subject to legislative authorization and appropriation in the General Appropriations Act of FY 2017;

(2) the principal amount necessary in order to provide for one or more of the following purposes:

(A) to finance a reserve fund;

(B) to refund all of the 2009A Bonds with a final maturity that does not exceed the existing final maturity of the 2009A Bonds;

(C) to refinance the outstanding loan of the Bank of Guam to the Guam Memorial Hospital Authority currently outstanding in the approximate principal amount of 20.1 Million Dollars, with a final maturity that does not exceed the existing final maturity of the outstanding loan of the Bank of Guam to the Guam Memorial Hospital;

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(D) to refinance all of the Government’s obligations with respect to the Series 2013B Guam Education Financing Foundation II, Inc. Certificates of Participation (Okkodo High School Expansion Project) (the 2013 Certificates), with a final maturity that does not exceed the existing final maturity of the
2013B Certificates; and

(E) 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, not to exceed 1.5% of the PAR and subject to the following additional conditions:

(i) The terms and conditions of the bonds shall be as determined by I Maga’låhen Guåhan by the execution of a certificate or indenture authorizing the issuance of the bonds, prior to the issuance of the bonds and shall be issued under the master indenture pursuant to which the 2009A Bonds were issued (including any amendments thereto) or under a new master indenture; provided, however, that such terms and conditions shall be consistent with this Section, that the bonds shall mature not later than thirty-one (31) years after their date of issuance, shall bear interest at such rates and be sold for such price or prices as shall result in a yield to the bondholders that does not exceed five percent (5%) per annum; and that the combined present value of debt service on the bonds issued to refund the 2009A Bonds, the above- referenced Bank of Guam loan and the 2013B Certificates shall be at least two percent (2%) less than the present value of debt service on the bonds and loan being refunded or refinanced.

(ii) The proceeds from such bonds shall be used and are hereby appropriated

(aa) to finance the payment of the Guam Memorial
Hospital Authority outstanding vendor payables;

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(bb) to fund a reserve fund;

(cc) to refund all of the 2009A Bonds and the
2013B Certificates;

(dd) to refinance the outstanding loan of the Bank of Guam to the Guam Memorial Hospital Authority, currently outstanding in the approximate principal amount of 20.1 Million Dollars; and

(ee) 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.

(iii) 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.

(iv) The issuance of bonds pursuant to this Section shall not be subject to the approval of the voters of Guam.

(b) All bonds issued pursuant to this Section shall be secured by a statutory lien on all revenues derived by the government of Guam under Section 30 of the Organic Act (Section 30 revenues). This lien shall arise automatically without the need for any action or authorization by I Maga’låhen Guåhan, the government of Guam, or any other person or entity. Such lien shall be valid and binding from the time such bonds are issued. The Section 30 revenues shall immediately be subject to such lien, and the lien shall automatically attach to the Section 30 revenues and be effective, binding, and enforceable against I Maga’låhen Guåhan, the government of Guam, their successors, assignees, and creditors, and all others asserting the rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further Act. Section 30 revenues that are not required to make payments on the bonds shall automatically, and without the need for any

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further action, be released from such lien and shall be available for appropriation for any other lawful purpose of the government. The statutory lien described in this Subsection shall not be subject to Division 9 of Title
13, Guam Code Annotated, or any successor statute. The Section 30 revenues received by the government of Guam or by any trustee, depository or custodian shall be deposited in accordance with the provisions of the applicable indenture.

(c) In addition to the statutory lien provided for above, all or any part of the Section 30 revenues may be pledged, if and to the extent determined by I Maga’låhen Guåhan, to secure the payment of any bonds issued pursuant to this Section. Any such pledge shall be valid and binding against all parties in accordance with its terms and have priority against all parties in accordance with its terms from the time the pledge is made, and property so pledged shall immediately be subject to the lien of the pledge without the need for physical delivery, recordation, filing, or other further Act. The pledge shall not be subject to Division 9 of Title 13, Guam Code Annotated, or any successor statute. The indenture by which such pledge is created need not be recorded. All Section 30 revenue so pledged is hereby appropriated for the purpose for which it has been pledged. Indebtedness issued by the government pursuant to this Section and that is payable from Section 30 revenue may not be issued in an amount that would cause a violation of the debt limitation provisions of Section 11 of the Organic Act.

SOURCE: Added by P.L. 33-183:1 (July 22, 2016).

2016 NOTE: P.L. 33-183 stated further:

Section 3. All elements contained in Section 2 of this Act shall be included in the indenture pursuant to this Act. Additionally, the trustee shall not release the Fifteen Million Dollars ($15,000,000) until such authorization and appropriation in the General Appropriation Act of FY
2017 is duly passed by I Liheslaturan Guåhan.

Section 4. Any fee(s) to be paid to the Guam Economic Development Authority for their assistance in refinancing the Series 2009 A Limited Obligation (Section 30) Bonds, the Series 2013B Guam Education Financing Foundation II, Inc. Certificates of Participation (Okkodo High School Expansion Project), and the Guam Memorial Hospital Authority Bank of Guam Loan shall be from the source of debt service for these bonds, certificates and loan.

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