Definitions

The definitions set forth herein shall govern the construction and interpretation of this Chapter:

(a)‘Prior bond’ means for purposes of this Chapter the following obligations which are to be redeemed or otherwise retired with the proceeds of refunding bonds and investment earnings thereon:

(1)Loans made pursuant to Public Law No. 24-59, as amended, for the Guam Memorial Hospital Authority,

(2)Loans made pursuant to Public Law No. 25-72, as amended, for the purpose of funding the voluntary separation programs, and

(3)The 1989 Government of Guam Water System Revenue Bonds, Series 1989.

(4)The Judicial Building Loan (Government of Guam Promissory Note to Farmers Home Administration Superior Court Note). COL1/11/2022 CH. 51 AUTHORIZATION TO REFUND OBLIGATIONS TO ACHIEVE SAVINGS

(b)‘Refunding bond’ means a bond authorized or approved pursuant to this Chapter for the purpose of providing moneys to redeem or otherwise retire prior bonds, funding any necessary bond reserves or paying expenses incurred in connection with the issuance of such refunding bonds.

(c)‘Yield’ shall have the same meaning as when used in §148 of the Internal Revenue Code of 1986, as amended. That is, >yield= means the annual discount rate which, when used to discount all payments of debt service on an issue of bonds to the date of issuance of the bonds, using a semiannual compounding interval, results in the aggregate present value of such payments being equal to an amount equal to the reoffering price to the public of such bonds less fees to be paid for credit enhancement of such bonds from proceeds thereof.

(d)‘Debt service’ means the scheduled principal of and interest on bonds plus fees to be paid (other than from bond proceeds) for credit enhancement of such bonds and the net amounts to be paid or received under any financial contract entered into under § 51105 of this Chapter. For purposes of this definition, any prior bonds bearing interest at a variable rate shall be assumed to bear interest at the then-current interest rate on such bonds.

(e)‘Debt service savings’ means the percentage by which the present value of debt service on the refunding bonds is less than the present value of debt service on the prior bonds, taking into account any moneys transferred from the refunded bonds to the refunding bonds and taking into account any moneys contributed to either or both bond issues. Present value shall be calculated for this purpose using the yield on the refunding bonds as the discount rate.

(f)‘Bond’ means any bond, note or other evidence of indebtedness.

(g)‘GEDA’ means the Guam Economic Development Authority.