Terms Used In 5 Guam Code Ann. § 22414

  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
Liabilities of the government of Guam documented on May
26, 1984 by Touche, Ross & Co. are recognized by the
Legislature, and are listed as follows:

Due to GovGuam Retirement System $ 16,120,000

Tax refunds (personal income) 13,500,000

Due to various vendors 2,000,000Tax refunds, corp. carryback losses 2,500,000

Tax refunds, due to GEDA rebate program 3,000,000

Litigation claims payable 750,000

$ 37,870,000

No payment by the government of Guam is to be made on any of the liabilities listed above after the effective date of this Section [June 4, 1984] except as specifically appropriated by the Legislature or as provided as follows:

(a) Pursuant to § 22413 of this Article, except for subsection (a) of that Section, the Governor on behalf of the government of Guam is authorized to borrow an amount not to exceed Fourteen Million Dollars. This $14,000,000 includes the $4,000,000 authorized to be arranged as a line of credit subject to approval by the Legislature by Resolution according to § 22413 of this Article (as found in P.L. 17-4) and not yet drawn down as of June 4, 1984 and an additional
$10,000,000. The amounts, interest rates, and maturity date of the borrowing and renewals and replacements thereof of
the entire amount of $14,000,000 authorized to be borrowed by this Section shall be subject to the approval of the
Legislature by Resolution, with all other terms to be determined in the discretion of the Governor through negotiation with the lending institution or institutions
involved. This authorization to borrow additional funds shall be utilized first to pay the amounts appropriated in sections 6
through 20 of P.L. 17-59 and the balance to pay part of the obligations above with the obligations listed as

(1) Due to Government of Guam Retirement
System,

(2) Due to various vendors, and

(3) Litigation claims payable to be paid on a prorated basis.

(b) The expenditures of the Government of Guam for FY’85 shall be 95% of the expenditures of the Government of Guam in FY’83 which is 95% of $178,000,000. The
money realized from the 5% reduction in expenditures shall be used to retire the liabilities of the government listed above on a prorated basis.

(c) The debt of $16,120,000 owed by the General Fund to the Retirement Fund shall be repaid by not later than June
1, 1994 with interest at the average rate of return on investments of the Retirement Fund in the preceding fiscal year. Interest and principal shall be paid in quarterly
installments commencing October 1, 1984. Interest shall accrue from March 31, 1984.

Notwithstanding other provisions of law, the Treasurer of Guam is directed to and charged with the duties and responsibilities to insure that all principal and interest is paid on time preceding all other liabilities and obligations of the Government of Guam other than loans authorized by this Section and existing loans authorized by § 22413 of this Article.

SOURCE: GC § 6122 added by P.L. 17-53:21; subsection (a) amended by
P.L. 17-59:2; subsection (c) amended by P.L. 17-59:3.

COMMENT: See COMMENT to § 22409.