(a) Definitions. The following terms shall have the following meanings when used in this Section:

(1) Debt service means the scheduled principal of and interest on bonds plus fees, if any, to be paid for credit enhancement of such bonds.

(2) Debt service savings means the amount by which the present value of debt service on refunding bonds is less than the present value of the remaining debt service on the prior obligations refunded by such refunding bonds. Present value shall be calculated for this purpose using the yield on the bond issue as the discount rate.

(3) Hotel tax revenues means all revenues derived from taxes of the type now imposed by § 30101 of Chapter
30 of Title 11 of the Guam Code Annotated.

(4) New money bond means a bond issued pursuant to this Article as part of the same issue as the refunding bonds, but for the purpose of providing moneys for the projects authorized by Subsection (i) of this Section, funding a debt service reserve fund, or paying expenses incurred in connection with the issuance of such new money bonds 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.

(5) Prior obligations means the outstanding Government of Guam Limited Obligation Infrastructure Improvement Bonds, 1997 Series A, being refunded in connection with the issuance of bonds pursuant to this Section.

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(6) Refunding bond means a bond issued pursuant to this Section for the purpose of providing moneys to redeem or otherwise retire prior obligations, funding any appropriate reserves allocable to the refunding bonds, or paying expenses incurred in connection with the issuance of such refunding bonds 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.

(7) Yield means the annual discount rate which, when used to discount all payments of net debt service on a bond issue to the date of issuance of the bonds, using a semiannual compounding interval, results in the aggregate present value of such payments being equal to the re-offering price to the public of the bonds. For this purpose, “”net debt service”” means debt service minus the amount of any direct subsidy payment to be received from the United States in connection with debt service.

(b) Authorization of Issuance of Limited Obligation Infrastructure Improvement Bonds. I Maga’lahen Guåhan is authorized to issue on behalf of the Government an issue of bonds of the Government consisting of refunding bonds and new money bonds, subject to the following requirements and limitations:

(1) The issuance of the bonds shall not cause a violation of the debt limitation provisions of Title 48 U.S.C.
§1423a (§ 11 of the Organic Act of Guam).

(2) All obligation of the Government to pay debt service on the prior obligations shall be discharged concurrently with the issuance of the refunding bonds. Thereafter, any remaining debt service on the prior obligations shall be payable solely from and secured solely by a refunding escrow established for such purpose.

(3) The present value of debt service on the refunding bonds shall be at least two percent (2.0%) less than the present value of debt service on the refunded bonds, using the yield on the refunding bonds as the discount rate.

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(4) The aggregate principal amount of refunding bonds issued shall not exceed the amount necessary to redeem or otherwise retire the prior obligations, fund any appropriate reserves allocable to the refunding bonds, and pay expenses incurred in connection with the issuance of the refunding bonds 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.

(5) The aggregate principal amount of new money bonds issued shall not exceed the amount necessary to fund the sum of the amounts appropriated for the projects listed in Subsection (i) of this Section, establish a debt service reserve fund allocable to the new money bonds, pay capitalized interest on the bonds and pay expenses incurred in connection with the issuance of the new money bonds 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.

(6) Aggregate net debt service in each fiscal year on the bonds issued pursuant to this Section and any Government of Guam Infrastructure Improvement Bonds,
1997 Series A, remaining outstanding after the issuance of such bonds shall not exceed Seven Million Dollars
($7,000,000) per fiscal year.

(c) Source of Payment and Security for the Bonds. The bonds issued pursuant to this Section shall be limited obligations of the Government payable from and secured by a pledge of all or any part of the hotel tax revenues. Any pledge made to secure the bonds shall be valid and binding from the time the pledge is made. The hotel tax revenues received by the Government or any trustee, depository and 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 valid and binding against all parties having claims of any kind in tort, contract or otherwise, against the Government of such trustee, depository or custodian, irrespective of whether the parties

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have notice thereof. The indenture by which such pledge is created need not be recorded. Hotel tax revenues pledged for the purpose of paying the bonds are hereby continuously appropriated for such purpose and for the purposes of paying the charges of any trustee, custodian, depository, auditor or credit enhancement provider for the bonds and any other necessary bond expenses under the indenture. All such revenues not needed for such purpose or for the purposes of paying any Government of Guam Limited Obligation Infrastructure Improvement Bonds, 1997
Series A, remaining outstanding and any expenses related thereto shall be transferred periodically by any trustee or other fiduciary under the indenture as follows:

(1) first, to the fund or account designated by the Guam Visitors Bureau (GVB), such amount as is specified by the budget enacted by I Liheslaturan Guåhan (the Guam Legislature) for the GVB, and

(2) second, the balance of such revenues to the Tourist
Attraction Fund.

The obligation to make these transfers to the GVB and the Tourist Attraction Fund shall not be a part of the contract with the bondholders, and shall be subject to the modification by amendment of this Subsection (c) of this Section.

The Director of Administration shall provide to I Liheslaturan Guåhan (the Guam Legislature) a copy of each monthly trustee’s or other fiduciary’s report on collections and disbursements of hotel tax revenues within five (5) working days of the Director’s receipt of such report.

(d) Terms and Conditions Determined by Indenture; Form of Bonds; Covenants; Appointment of Fiduciaries; Other Related Agreements. The terms and conditions of the new issue shall be as determined by I Maga’lahen Guåhan by the execution of an indenture authorizing the issuance of the issue. The indenture shall contain such terms and conditions as are consistent with this Section. The technical form and language of the bonds of the new issue, including provisions for execution, exchange, transfer, registration, paying agency, lost or mutilated bonds, negotiability, cancellation and other terms, covenants or conditions not

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inconsistent with this Section, shall be as specified in the indenture executed by I Maga’lahen Guåhan authorizing the issuance of the bonds. The indenture may appoint one (1) or more trustees or other fiduciaries authorized to receive and hold in trust the proceeds of the bonds and moneys relating thereto, to protect the rights of bondholders and to perform such other duties as may be specified in the indenture. The proceeds of the bonds issued pursuant to this Section, and any revenues relating to such bonds, may be invested in, but only in, the types of investments permitted by the indenture. I Maga’lahen Guåhan is also authorized to execute, on behalf of the Government, any appropriate agreements, certificates or other instruments relating to the bonds and the sale of the bonds.

(e) Authorization for Credit Enhancement. I Maga’lahen Guåhan is authorized to enter into such contracts or agreements with such banks, insurance companies or other financial institutions as he determines are necessary or desirable to improve the security and marketability of any bonds authorized by this Section. Such contracts or agreements may contain an obligation to reimburse, with interest, any such banks, insurance companies or other financial institutions for advances used to pay principal of or interest on the issue. Any such reimbursement obligation shall be payable solely from the same sources as debt service on the issue is payable, and any such advance, if necessary, shall be treated as creating a reimbursement obligation issued to refund the issue.

(f) Valid and Binding Obligations, Collection of Revenue. The bonds of the issue authorized by this Section shall constitute the valid and binding limited obligations of the Government. All officers charged by law with any duty in the collection of any revenues from which debt service on the issue is payable shall do every lawful thing necessary to collect the money necessary for such purpose. The validity of any such bonds shall not be affected by the validity or regularity of any proceedings for the implementation of the infrastructure improvement projects funded by either the prior obligations or the new money bonds.

(g) Waiver of Immunity. Notwithstanding any substantive or procedural provision of the Government Claims Act, Chapter 6 of

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Title 5 of the Guam Code Annotated, the Government waives immunity from any suit or action in contract on the bonds authorized by this Section, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the Government.

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

(i) Infrastructure Improvement Projects. The proceeds of the new money bonds issued under this Section are hereby appropriated in amounts not to exceed the following amounts for the purposes of implementing the following projects, in the following order of priority:

(1) Sixty-Eight Million Five Hundred Thousand
Dollars ($68,500,000) for the following projects:

(A) for 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; provided, however, that the location of such educational facility shall have been approved by I Maga’låhen Guåhan prior to acquisition (if any) or construction thereof;

(B) for resolution of the San Vitores flooding caused by storm water runoff along San Vitores Road north of the Fujita Pump Station by collecting and

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removing storm runoff via transmission to the Fujita
Pump Station to be discharged at a suitable location;

(C) for various projects related to Historic
Hagåtña to include the following:

(i) for the restoration of the walls of the
Plaza de España;

(ii) for the restoration and rehabilitation of the Plaza de España Azotea;

(iii) for the restoration of the Plaza de España
Chocolate House; and

(iv) for the development of a paver-surface crosswalk and landings on both sides of Marine Corps Drive to provide a proper connection between Skinner Plaza and the Chamorro Village.

(v) The Guam Economic Development Authority shall reprogram the sum of One Million Dollars ($1,000,000) from the available unused allocation pursuant to this Section for the Dock and Shoreline Reinforcement Economic Enhancement Project of the Guam Fishermen’s Cooperative Association Facility, to provide funding for the restoration and development of the seawall and new walkway beginning adjacent to the Hagåtña Fishermen’s Cooperative Building and extending seaward along the Hagåtña Marina (Boat Basin) channel.

(D) for reimbursements to the Guam Preservation Trust interfund payables due to failure to deposit in said Fund and to transfers out by I Maga’låhen Guåhan;

(E) for the restoration of the Inarajan community center;

(F) for the restoration and rehabilitation of the Malesso Bell Tower, including landscaping and lighting improvements;

(G) for the design and construction of a Guam

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Farmers Cooperative Association facility and the relocation of the Dededo Flea Market;

(H) (i) for purposes of issuing a grant of no more than Five Million Dollars ($5,000,000) to the Guam Fishermen’s Cooperative Association (GFCA) for the purposes of construction, repair and improvements of its facility as part of the Greg D. Perez Marina Economic Enhancement Master Plan.

(ii) No funds authorized in this Section shall be used to pay any contracted consultants.

(iii) Notwithstanding the order of priority requirement in § 1515(i)(2) and upon enactment, the sum of Two Million Dollars ($2,000,000) of the proceeds are authorized, appropriated and shall be deposited and accounted for in a separate trustee sub-account for the payments of expenses associated with the construction, repair and improvements of the GFCA facility. Any services or contracts or expenses associated with the construction, repair and improvements of the GFCA facility under this grant shall require the approval of the GFCA. Disbursements for payments of expenses associated with the construction, repair and improvements of the GFCA facility shall be approved by the GFCA and countersigned by GEDA. The proceeds of the grant must be expended or encumbered by the GFCA for the purposes provided herein no later than March
31, 2017.If any funds authorized by this Section remain unexpended or unencumbered after March
31, 2017, the amount of the unencumbered or
unexpended authorization shall be subject to legislative re-appropriation. Funds not authorized for expenditure by the GFCA in this Section are subject to legislative appropriation for tourism- related capital improvement projects. The GFCA shall report to I Maga’låhi (the Governor) and the

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Speaker of I Liheslatura (the Legislature) on a quarterly basis of all expenditures of this grant and other funds secured by the GFCA used for the construction, repair and improvements of its facility until the grant is fully expended and the facility construction, repair and improvements are completed.

(I) for the construction of a historic monument and plaza to commemorate Ferdinand Magellan’s historic visit to Umatac Bay;

(J) for the design and construction of village entrance signs for Guam’s nineteen (19) municipalities;

(K) for improvements to the Nimitz Beach outdoor pavilion, public restrooms, lighting, benches and walking paths;

(L) for improvements to the public facilities near the Fish Eye Pier, including public restrooms, washing facilities, benches, lighting, and picnic areas;

(M) for improvements to the stalls, public restrooms, landscaping and walking paths of the Mangilao Public Market;

(N) for improvements in Tumon Bay, to include pedestrian corrals and safety railings, and overhead lighting at the Governor Joseph Flores Memorial Park;

(O) for the renovation of streetlights along Pale
San Vitores Road;

(P) for the renovation of streetlights in the Agana
Bay vicinity;

(Q) for the restoration and repair of scenic byways, overlooks, and historic sites, including the Cetti Bay and Sella Bay Overlooks; the Umatac Bay Overlook; the Agat Spanish Bridge (Talifak River); the Talofofo and Fadi’an Point Overlooks; the Santos Memorial Park ocean views; and the East Agana Bay picnic shelters and ocean views;

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(R) for the design and construction of a permanent monument for the late Senator Angel L.G. Santos Park;

(S) for the scenic and informational highway signs;

(T) for improvements of the Hagåtña Tennis
Courts;

(U) for improvements of the Hagåtña Pool;

(V) for deposit into the Community Sports Recreational Improvement Fund established under Public Law 14-27 for the construction and/or renovation of sports and community recreational facilities;

(W) for primary or supplemental funding for projects identified under the Hagåtña Master Plan; and

(X) for the acquisition of available real estate that is offered for sale, and the development of a public park, within the area known as Faifai and Gognga (Gun Beach) in Tumon.

(j) Approval of Guam Economic Development Authority. Section 50103(k) of Title 12, Guam Code Annotated provides that agencies and instrumentalities of the Government shall issue bonds and other obligations only by means of and through the agency of the Guam Economic Development Authority (GEDA). No issue of bonds 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) In the event that I Maga’lahen secures a loan under Public Law 30-179, I Maga’lahen is authorized to reprogram bond proceeds intended for Item (1) of Subsection (i) of this Section for the purpose of reconstructing and/or renovation of the Old Guam Legislature Building (the former Guam Congress Building) and other historic facilities in Hagåtña.

SOURCE: Added by P.L. 30-228:1 (Dec. 12, 2010). Subsection (i)(2)(G)
repealed and reenacted by P.L. 31-196:9 (Mar. 28, 2012), amended by P.L.
32-056:1 (July 8, 2013), P.L. 33-059 (June 30, 2015), and 33-147:1 (Apr.
15, 2016). Subsection (i)(2)(W) added by P.L. 31-196:10 (Mar. 28, 2012).

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Subsection ((i)(2)(B)(v) added by P.L. 33-147:2 (Apr. 15, 2016). Subsection (i) amended by P.L. 33-206:2 (Dec. 15, 2016).

2016 NOTE: Subitem designations were added to subsection (i)(2)(G) to adhere to the Compiler’s codification and alpha-numeric schemes pursuant to authority granted by 1 Guam Code Ann. § 1606.