Terms Used In 5 Guam Code Ann. § 58106

  • Contract: A legal written agreement that becomes binding when signed.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(a) The Contract shall require that the Contractor be responsible for all costs, expenses and fees of any kind or nature, associated with the design, civil improvements, on-site infrastructure, construction, permits and financing associated with the completion of an Education Facility. The Contractor shall also be responsible for the capital maintenance and upkeep of the schools during the Lease-Back term.

(b) The costs of the design, construction and financing for an Education Facility shall be paid in periodic installments over the term of the Lease-Back period, which shall be mutually determined by the Education Agency and the Contractor, but which will not exceed thirty (30) years.

(c) The Lease and Lease-Back may provide that if sufficient funds are not appropriated or otherwise available for the payment of such installments, the Education Agency will have the obligation to vacate the Education Facility, and the Contractor shall have the right of use and occupancy of the Education Facility for the remainder of the term of the Lease, unless new mutually satisfactory terms are entered into. For this purpose, the Lease may provide that its term shall be extended for a period not to exceed the shorter of ten (10) years beyond the original term of the Lease-Back or such period of time as is necessary to repay in full any financing arranged pursuant to Section 58108.

(d) The capital maintenance, repair and upkeep costs shall be paid on a periodic basis as incurred by the Contractor on terms to be agreed to in the Contract for each Education Facility.

COL292017
5 Guam Code Ann. GOVERNMENT OPERATIONS CH. 58 THE EDUCATION FACILITIES CONSTRUCTION INITIATIVE ACT OF 2001

SOURCE: Added by P.L. 26-061:2 (Dec. 22, 2001), and amended by P.L. 28-047:5 (June 10, 2005).

2015 NOTE: Subsection designations were added to adhere to the Compiler’s alpha-numeric scheme in accordance with the authority granted by 1 Guam Code Ann. § 1606.

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