Procurement for LOC, Collateral, Terms and Conditions

(a)Upon passage of this Chapter, the Guam Economic Development and Commerce Authority (GEDCA) shall immediately initiate preparation of solicitation documents from RFP lenders. The solicitation shall require the lender provide a credit facility in the form of a revolving LOC. The lender must be willing to accept as the only collateral for the loans the FEMA grants generated as a result of a disaster, for the Federal portion of the FEMA grant, and the Section 30 funds, or other assets for Guam’s matching participation on the grant and interest, and incidental charges to the LOC. Nothing stated herein shall preclude Guam and the lender from entering into a different security arrangement, but Guam is not required to provide any more security or collateral for the loans as provided for in this Section. The interest that may be charged by the Lender for a draw down on the LOC shall have a seven

(7)year maturity and bear interest at a commercially reasonable rate based on prevailing market rates.

(b)Any amounts not paid within seven

(7)years, which includes interest, administrative costs, nonreimbursed DDT cost, together with loans of the matching funds or funding of PPP, may be rolled over into a long term loan pursuant to another RFP, with a term no longer than thirty

(30)years, and a commercially reasonable interest rate based on prevailing market rates. All terms and conditions of the line of credit, and any agreement between Guam, GRO and the lender pursuant to the RFP shall be subject to legislative approval, shall not include an indemnity of the Lender by Guam, and shall provide that Guam shall not be liable for any expenditures made by the Lender which are not reimbursable by FEMA after all appeals with the exception of administrative cost and interest, nor shall Guam be liable for any negligent actions or errors of the DDT.