Health and Physical Education Complex: Authorization to Borrow

The Board is authorized to negotiate a loan and incur such obligations as are necessary for the purpose of funding the construction of the initial phase of the Health and Physical Education Complex. Notwithstanding any provision of law, rule or regulation to the contrary, the Board may mortgage the Health and Physical Education Complex in order to obtain the loan necessary for the construction of the complex. The obligation incurred for the construction of the complex shall not be a general obligation of the government of Guam and income generated by the Complex, if any, or from tuition and other revenues accruing to the University of Guam, shall be pledged for repayment of the loan. Income earned by any lending institution on interest accruing from the loan authorized under this Section shall be exempt from income taxation. This Section does not preclude the University of Guam from accepting donation for the construction of the initial phase of the Health and Physical Education Complex. Such donations and gifts may be used for the purpose of repaying any obligation incurred by the University.