(a) Authorization to Borrow. I Maga’lahen Guåhan is authorized to borrow on behalf of the government of Guam, including by the issuance of limited obligation notes or debt, as provided in this Section, in an aggregate principal amount not to exceed Twenty-five Million Dollars ($25,000,000) for the purpose of paying for:

(1) the costs of the acquisition, construction and equipping of an educational facility that reflects a sense of Guam and the Chamorro culture and will be the permanent home for the preservation and continuance of the Chamorro people; provides for the display of artifacts and historical documents; stimulates community involvement; fosters research and conveys the results of research to the public primarily through the medium of public exhibits, demonstrations, lectures, public programs and publications using the theme: I Hinanao-ta, the journey of the Chamorro people;

(2) the preservation and restoration of the Plaza de España and other structures within the Plaza as important field facilities in the continuing cultural education of Guam’s school children, residents, and visitors; and

(3) funding necessary reserves and paying expenses incurred in connection with the issuance of such debt not already included in an existing appropriation for, or the regular budget of any government agency or instrumentality or public corporation providing any service in connection with the issuance of such debt; provided, however, that such debt may not be issued in an amount that would cause a violation of the debt limitation provisions of 48 U.S.C. § 1423a (§ 11 of the Organic Act of Guam).

(b) Terms and Conditions Determined by Certificate. The terms and conditions of the debt shall be determined by I

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Maga’lahen Guåhan by the execution of a certificate authorizing the issuance of the debt upon or prior to the issuance of the debt; provided, however, that such terms and conditions shall be consistent with this Section, and that the debt shall mature not later than the date thirty (30) years after its date of issuance and shall bear interest at such rates and be sold for such price or prices as shall result in a yield to the holders of the debt not exceeding seven and one-half percent (7½%) per annum.

(c) Valid and Binding. The debt authorized by this Section shall constitute the valid and binding limited obligation of the government of Guam payable from and secured by a pledge of the revenues derived from the Tourist Attraction Fund. The government of Guam pledges revenues described in Subsection (d) of this Section for the punctual payment of both principal of and interest on the debt and covenants that there shall be collected annually in the same manner and at the same time as government revenue for other purposes is collected, such sum as is required to pay the principal of and interest on the debt. There are hereby appropriated from the Tourist Attraction Fund such sums as may be necessary in each year to equal the amount of money necessary to pay the principal and interest on such debt. All officers charged by law with any duty in the collection of the revenues of the government from which debt service on the debt will be payable shall do every lawful thing necessary to collect such sum. The validity of any such debt shall not be affected by the validity or regularity of any proceedings for the expenditure of the proceeds of the debt.

(d) Pledge of Revenues. All or any part of the revenues constituting the Tourist Attraction Fund created by § 30107 of Title 11 Guam Code Ann., Chapter 30 may be pledged to secure the repayment of any debt or debts created under this § 1514 and pay costs incurred in the creation of such debts, subject to any previously created lien on or pledge of such revenues. Any pledge made to secure the debt or debts shall be valid and binding from the time the pledge is made. The revenues pledged and thereafter received by the government of Guam or by any trustee, depository or custodian shall be deposited in a separate account and shall be immediately subject to the lien of such pledge without physical delivery thereof or further act, and the lien of such pledge shall be

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valid and binding against all parties having claims of any kind in tort, contract or otherwise, against the government of Guam, such trustee, depository or custodian, irrespective of whether the parties have notice thereof. The certificate by which such pledge is created need not be recorded. All revenues pledged are hereby continuously appropriated for the purpose for which they have been pledged.

(e) Waiver of Immunity. Notwithstanding any substantive or procedural provision of Chapter 6 of Title 5, Guam Code Ann., the government of Guam waives immunity from any suit or action in contract on the debt, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

(f) No Personal Liability. No employee or elected official of the government of Guam shall be individually or personally liable for the payment of any amounts due on any debt issued under this Section, or for any other liability arising in connection with the debt; provided, however, that nothing in this Section shall relieve any employee or elected official from the performance of any ministerial duty required by law.

(g) Form of Debt; Covenants; Appointment of Fiduciaries. The technical form and language of the debt, including provisions for execution, exchange, transfer, registration, paying agency, lost or mutilated debt, negotiability, cancellation and other terms or conditions not inconsistent with this Section shall be as specified in the certificate executed by I Maga’lahen Guåhan authorizing the issuance of the debt. The certificate shall appoint one (1) or more trustees, co-trustees or other fiduciaries authorized to receive and hold in trust the proceeds of the debt and other moneys relating thereto, to protect the rights of holders of the debt and to perform such other duties as may be specified in the certificate. I Maga’lahen Guåhan is also authorized to execute, on behalf of the government of Guam, any appropriate agreements, certificates or other instruments relating to the debt and the sale of debt.

(h) Use of Proceeds from the Sale of the Debt. The proceeds of the debt shall be used and are hereby appropriated to:

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(1) pay for the costs of the acquisition, construction and equipping of an educational cultural facility;

(2) pay for Five Million Dollars ($5,000,000) towards the costs of the preservation and restoration of the Plaza de España, and other structures within the Plaza;

(3) establish necessary reserves;

(4) pay expenses relating to the authorization, sale and issuance of the debt, including, without limitation, printing costs, costs of reproducing documents, legal, financial advisory and accounting fees and charges and other costs, charges and fees in connection with the issuance, sale and delivery of the debt; and

(5) fund capitalized interest on the debt for a period not exceeding twenty-four (24) months.

The educational cultural facility shall include facilities designed to assist in furthering the preservation, education and presentation of Guam’s culture, heritage and history.

(i) Permitted Investments. The proceeds of the debt and any moneys relating to the payment of such debt, may be invested in, but only in, the types of investments permitted by the certificate pursuant to which such debt is issued.

(j) Approval by the Guam Economic Development Authority. Section 50103(k), Title 12, Guam Code Annotated, provides that agencies and instrumentalities of the government of Guam shall issue debt and other obligations only by means of and through the agency of the Guam Economic Development Authority (GEDA). No debt authorized by this Section shall be sold until the Board of Directors of GEDA has adopted a resolution approving the sale of such issue.

(k) Approval of Voters Not Required. Notwithstanding §§ 17311 and 17312 of Title 17, Guam Code Annotated, the issuance of the debt authorized by this Section shall not be required to be subject to the approval of, or placed before, the voters of Guam.

SOURCE: Added by P.L. 30-179:1 (Aug. 14, 2010). Subsection (b)
amended by P.L. 30-228:4 (Dec. 30, 2010).

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