Authorization to Enter Into Loan for Landfill Costs

(a)Authorization to Borrow. I Maga’hågan/Maga’låhen Guåhan is authorized to borrow on behalf of the government of Guam as provided in this Section from one

(1)or more banks or other financial institutions an amount not to exceed the amount necessary to provide Twenty Million Dollars ($20,000,000) for the purpose of financing costs of a new landfill.

(b)Terms and Conditions. The terms and conditions of the loan shall be as determined by I Maga’hågan/Maga’låhen Guåhan by the execution of a loan agreement; provided, however, that the loan:

(1)shall be subject to prepayment from the proceeds of the first revenue bonds issued for the landfill, which proceeds may be pledged for that purpose;

(2)may be secured by Compact Impact funds;

(3)may be a general obligation of the government of Guam;

(4)may also be secured by a pledge of Section 30 Revenues, which shall be subordinate to and not on parity with the bonds authorized under 5 GCA [§] 1512.1(c); CH. 1 OFFICE OF I MAGA’HÅGA/MAGA’LÅHI [THE GOVERNOR]

(5)shall, if not paid with the proceeds of revenue bonds, have annual principal payments over the twenty

(20)year or less period commencing one

(1)year after its funding date;

(6)shall bear interest at such fixed or variable rate or rates as may be negotiated by I Maga’hågan/Maga’låhen Guåhan in the best interests of the government, such interest rate shall not exceed eight percent (8%) and shall be computed on a three hundred sixty-five

(365)day calendar year upon the actual amount extended to the government;

(7)prepaid charges shall not be levied by the bank or entity for opening a loan or line of credit;

(8)interest derived from the financial agreement shall be exempt from taxation by the government of Guam;

(9)the debt service on the loan shall be paid from the solid waste tipping fees; and

(10)the lender may require that an amount not exceeding the monthly debt service be paid from the solid waste tipping fees into a trust account to satisfy debt service payment as a condition of the loan.

(c)Approval by Guam Economic Development Authority. No loan authorized by this Section shall be entered into until the Board of Directors of GEDA has approved the loan by resolution.

(d)Approval of Voters Not Required. The loan shall not be subject to the approval of the voters of Guam.

(e)Approval of Loan. I Liheslaturan Guåhan, pursuant to § 50103(k), Title 12 Guam Code Annotated, hereby approves a borrowing by the government of Guam for the purposes and in the principal amount authorized by this Section provided that the loan is entered into subject to the terms and conditions mandated in this Section.

(f)Notwithstanding any substantive or procedural provision of Chapter 6 of Title 5 of the Guam Code Annotated, the government of Guam hereby 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 or appointed officials and employees of the government of Guam.