12 Guam Code Ann. § 83110
Terms Used In 12 Guam Code Ann. § 83110
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
12 Guam Code Ann. AUTONOMOUS AGENCIES
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;
COL 7/27/2023
12 Guam Code Ann. AUTONOMOUS AGENCIES
CH. 83 THE GUAM TWENTY-FIRST (21ST) CENTURY
HEALTHCARE CENTER ACT OF 2021
and
(3) to fund capitalized interest with respect to the bonds;
(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 Ann..
(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
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12 Guam Code Ann. AUTONOMOUS AGENCIES
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.