(a) Authorization to Borrow. The Governor of Guam, on behalf of the government of Guam, is authorized to borrow an aggregate principal amount not to exceed Fifty-Two Million Nine Hundred Dollars ($52,900,000) to undertake the capital projects enumerated in subsection (g) of this Section; provided, however, that incurring this indebtedness shall not cause a violation of the debt limitation provisions of 48 U.S.C. § 1423(a). The debt may be incurred and the proceeds expended for the purpose of allowing the government of Guam to pay for the cost of arranging the loan and for the purposes described herein.

(b) Terms and Conditions Determined by Loan Agreement. The terms and conditions of the loan shall be as determined by the Governor by the execution of a loan agreement authorizing the loan. The loan agreement shall contain such terms and conditions as are consistent with this Section. The terms of the loan shall include the following:

(1) The loan shall be used by the Governor for the purposes stated herein;

(2) Prepaid charges shall not be levied by the bank or trust department extending the loan;

(3) The interest rate shall be subject to competitive negotiations between the Governor and the banks.

(4) Interest derived from the loan shall be exempt from taxation by the government of Guam.

(5) All terms of the loan agreement not specifically defined in the foregoing shall be negotiated by the Governor in the best interest of the people of Guam.

(6) The duration for the repayment of the loan shall be as negotiated by the Governor, but shall not exceed twenty (20) years.

(7) The loan shall be arranged with any bank or commercial lending institution licensed on Guam; provided, however, anything to the contrary in this Section notwithstanding, or any other provision of law, that the terms of the loan arranged by the Governor as provided by this Section, may permit the bank or commercial lending institution licensed on Guam with which such loan is arranged, to grant participation in such loan, at such times and in such amounts and upon such terms and conditions as such bank or lending institution licensed in Guam shall determine, to other banks, or commercial lending institutions, or to any other persons, associations, or corporations. The exemptions from taxation by the government of Guam of the interest derived from the loan shall be preserved to any such participant.

(c) Appropriation from the Tourist Attraction Fund. There is hereby appropriated from the unencumbered balances of the Tourist Attraction Fund, notwithstanding anything in 11 Guam Code Ann.
§ 30107 to the contrary, such sums as will equal in each year the amount of money necessary to pay the principal of and interest on such loan.

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

(e) Form of Loan; Covenants. The technical form and language of the loan, including provisions for execution, exchange, transfer, negotiability, cancellation or other terms or conditions not inconsistent with this Section, shall be as specified
in the loan agreement executed by the Governor evidencing the loan. The Governor is also authorized to execute, on behalf of the government of Guam, any appropriate agreements or other instruments relating to the loan.

(f) Bond Issue Rollover. The language of the loan agreement shall include provisions to permit the loan to be rolled over into a bond issue supported by the Tourist Attraction Fund. The Governor is urged to obtain a repayment schedule that will provide for interest-only payments until the loan is so rolled over.

(g) Use of Loan Proceeds. The proceeds from the loan shall be used solely to implement and equip the capital projects enumerated herein and to pay expenses relating to the arrangement of the loan. The capital projects to be implemented and equipped with the proceeds of the loan authorized by this Section are as follows:

Capital Projects Allocated
Amounts

(1) For Tumon Fafai
Reversion Project,

(A) For the acquisition and construction of the Gun Beach – Fafai Wastewater
System $8,400,000

(B) For design and construction of the Tumon Pump Station and Force
main $3,600,000

(C) For the refurbishment of the Northern District
Sewage Treatment Plant $1,800,000

(D) For the refurbishment of the Agana Sewage
Treatment Plant $2,000,000

(2) For Oka Point Collector
System Project
(A) For design and construction of the Oka
Point collector lines $2,000,000 (3) For Tumon Water Lines
(A) For design and
construction of waterlines $4,200,000 (4) For Tumon Water Sources
(A) For drilling and
construction $5,800,000 (5) Tumon Bay Beautification
(A) Streets & Sidewalks for medians, crosswalks and intersections, beach access, sidewalks and curbs, street furniture for benches, trash containers, signage, shelters, street lights and traffic lighting, enhancements for Governor Flores and
Matapang Beach Parks $7,200,000

(B) Landscaping for medians, road edge strips, entry points from San Vitores Boulevard to beach
access $3,900,000

(C) Services undergrounding for ocean side power lines and cables, clutter, removal of guy wires, and signage
consolidations $4,500,000

(D) Design and management fees for
design development, $1,600,000
construction documentation, permitting, and construction management

(E) Allowances for roadway repairs and restoration, resurfacing of San Vitores Boulevard, off-site infrastructure
work, and related work $5,000,000

(F) Of the approximately ten percent (10%) savings anticipated in carrying out the foregoing projects because of various duplications, Three Million Five Hundred Thousand Dollars ($3,500,000) are set aside for

constructing the Tumon Bay Storm Drainage System.

(G) Construction of the San Vitores substation and transmission lines by the Guam Power Authority in
the Tumon Bay area. $5,900,000

(h) Selection of Bank. In view of the urgency for the arrangement of the loan pursuant to this Section, subject to terms and conditions as outlined in this Act, the Governor is hereby authorized to utilize such method as he deems appropriate for the selection of the bank or banks in connection with the arrangement of the loan.

(i) Approval of GEDA. Section 2103(k) of Title 12, Guam Code Annotated, provides that agencies and instrumentalities of the government of Guam shall issue obligations only by means of and through the agency of the Guam Economic Development
Authority (“”GEDA””), and that GEDA shall not sell any obligation without the approval of the legislature of the terms and conditions of the issuance of the obligations. In view of the urgency for the arrangement of the loan pursuant to this Section, the original direct loan authorized hereunder is exempted from the requirement of said Section 2103(k), but on the rollover of such loan into a bond issue the section will fully apply.

(j) Approval of the Legislature. This Legislature, pursuant to this section and pursuant to subsection 2103(k), Title 12, Guam Code Annotated, hereby approves the loan of the government of Guam in the principal amount not to exceed Fifty-Two Million Nine Hundred Dollars ($52,900,000) as authorized by this Act; provided, that the terms of the loan are not inconsistent with this Act.

2012 NOTE: In maintaining the general codification scheme of the GCA the Compiler changed the hierarchy of subsections beginning with “”Lowercase Roman Numerals”” to “”Numbers”” in subsection (b) and subsections beginning with “”Numbers”” to “”Uppercase Letters”” in subsection (g).