(a) Pursuant to the agency of GEDA, the Board may at any time or from time to time, by resolution adopted by a majority of the members of the Board, authorize the Authority to incur indebtedness, including lines-of-credit, with the approval of I Maga’lahi (the Governor), for any lawful purpose for any period not exceeding ten (10) years evidenced by contract with any person. Any such indebtedness shall be incurred subject and subordinate to any contractual obligation of the Authority to the holders of any bonds and the principal thereof and interest thereon may be repaid:

(1) from revenues; or

(2) if incurred for a purpose for which bonds may be issued, from revenues or from the proceeds of sale of bonds.

The total cumulative amount borrowed pursuant to this Section shall not exceed Thirty Million Dollars ($30,000,000.00). Notwithstanding any other provision of law, the indebtedness specified herein shall not be subject to taxation by the government of Guam.

(b) Approval of Guam Waterworks Authority Short Term Indebtedness. I Liheslaturan Guåhan, pursuant to § 50103 of Chapter 50, Title 12, Guam Code Annotated, hereby approves the terms and conditions of short term debt to be issued by the Guam Waterworks Authority (GWA) pursuant to § 14235, Article 2, Chapter 14, Title 12, Guam Code Annotated, in one (1) or more series or issues (together with any related reimbursement obligations); provided that the issuance, terms and conditions of the debt, the indenture or loan agreement pursuant to which the bonds are to be issued, and any reimbursement agreement shall have been approved by the Guam Public Utilities Commission,and further provided that such debt may be issued in the principal amount necessary to fund GWA’s required operating account and operating reserve account balances, to pay past due operating expenses incurred by GWA, to provide interim financing for a portion of the costs of the moratorium project as defined in § 14241(g), Article 2, Chapter 14, Title 12, Guam Code Annotated, and to pay expenses incurred in connection with the issuance of
such debt not already included in an existing appropriation for or
in the regular budget of any government agency or instrumentality or public corporation providing any service in connection with the issuance of such bonds, but not to exceed an aggregate principal amount of Thirty Million Dollars ($30,000,000). Such debt shall have a final maturity not later than ten (10) years after its date of issuance, shall bear interest at such rate or rates and be sold for such price or prices as may be approved by the Guam Public Utilities Commission, and shall have such other terms and conditions as are consistent with the requirements and limitations provided in said § 14235.

SOURCE: Added by P.L. 28-071:2 (Nov 3, 2005). Amended by P.L. 30-
055:XII:28 (Sept. 4, 2009).

2012 NOTE: Subsections (1)(a)(b) and (2) changed to (a)(1)(2) and (b) to maintain the general codification scheme of the GCA.