(a) Authorization of Issuance of General Obligation Bonds for Capitol Building. The Governor of Guam may be authorized to issue one (1) or more series of general obligation bonds of the government of Guam in an aggregate principal amount not to exceed Thirty Six Million Dollars ($36,000,000) to undertake the construction of a capitol building and paying expenses incurred in connection with the issuance of such bonds; provided, however, that the issuance of the bonds shall not 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 bonds shall be as determined by the Governor by the execution of a certificate authorizing the issuance of the bonds upon or prior to the issuance of the bonds; provided, however, that such terms and conditions shall be consistent with this Section, and that the bonds shall mature not later than December 1, 2024, and shall bear interest at such rates and be sold for such price or prices as shall result in a yield to the bondholders not exceeding ten percent (10%) per annum. The certificate of the Governor shall designate the amount of each maturity of bonds issued for construction of the capitol building but shall also permit reallocation and redesignation of such bonds.

(c) Valid and Binding General Obligation. Any bonds autho- rized by this Section shall constitute the valid and binding general obligations of the government of Guam. The government of Guam pledges its full faith and credit for the punctual payment of both principal of interest on the bonds. 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 bonds. All officers charged by law with any duty in the collection of the revenues of the government shall do every lawful thing necessary to collect such sum. The validity of any such bonds shall not be affected by the validity or regularity of any proceedings for the implementation of the capital project funded by the bonds.

(d) Appropriations from the General Fund. There may be authorized to be appropriated from the General Fund such sums as will equal in each year the amount of money necessary to pay the principal and interest on such bonds.

(e) Additional Parity Bonds. Nothing in this Section shall be construed to prevent the government of Guam from issuing, after appropriate enabling legislation, other obligations of the government secured by the general obligation of the government on a parity with the bonds authorized by this Section.

(f) 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 bonds, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

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

(h) Authorization for Credit Enhancement. The Governor may be 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 the bonds issued under 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 bonds. Any such reimbursement obligation shall be a general obligation of the government of Guam, and any such advance, if necessary, shall be treated as creating a reimbursement obligation issued to refund the bonds.

(i) Use of Proceeds from the Sale of the Bonds. Proceeds from the sale of the bonds may be used solely to construct and equip a capitol building, to establish necessary reserves, and to pay expenses relating to the authorization, sale and issuance of the bonds, including, without limitation, printing costs, costs of reproducing documents, bonds insurance premiums, underwriting, legal and accounting fees and charges, fees paid to banks or other financial institutions providing credit enhancement, costs of credit ratings, fees and charges for execution, transportation and safekeeping of bonds and other costs, charges and fees in connection with the issuance, sale and delivery of the bonds.

(j) 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 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.

(k) Legislative Approval. No bonds may be issued under this
Section without specific prior approval of the Legislature.

SOURCE: Added as § 22431 by P.L. 22-024:8 (8/31/93).

NOTE: Section 9 of P.L. 22-024 gives the following implementation provisions:

Section 8 [§ 22424] of this Act shall take effect upon completion of the triennial property tax valuation nowunderway and a determination that the debt capacity of the government of Guam as limited under Section 11 of the Organic Act of Guam has increased by enough to allow issuance of the bonds for the Northern High School prior to issuance of the bonds for the capitol building.