Authorization to Borrow for Agat Jr. High School

(a)The Governor may negotiate a loan of not to exceed Three Million Dollars from the Farmers Home Administration, U.S. Department of Agriculture. The term of the loan shall not be for more than 40 years at a rate of 5% interest per annum. The money borrowed shall be used to complete construction of Agat Junior High School.

(b)The Governor is authorized to execute any promissory note and/or such other instrument(s) of indebtedness which may be required by the Farmers Home Administration for purposes of obtaining the $3,000,000 loan referenced in subsection

(a)of this Section. The Governor is also authorized to assign, pledge or grant a security interest in the real property tax revenue payable to the government of Guam in 11 GCA § 24103 or in the funds COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS appropriated and hereafter appropriated to Agat Junior High Sinking Fund, referenced in subsection

(c)of this Section. The Legislature shall approve the terms of the loan by resolution prior to execution of any note or such other instrument(s) of indebtedness.

(c)There is created within the Treasury of Guam the Agat Junior High Sinking Fund. The fund shall be used to pay the government’s annual obligation to Farmers Home Administration on the loan to reconstruct Agat Junior High School and shall exist only until the principal and the interest be fully paid. The sum of $200,000 is hereby appropriated annually, until the principal and interest of the $3,000,000 loan from Farmers Home Administration be fully paid, from revenue collected pursuant to sums as are necessary to meet the annual obligation on the loan is appropriated from the Agat Junior High Sinking Fund. If the promissory note and/or such other instruments(s) of indebtedness are not secured by an assignment, pledge, or security interest in the funds appropriated and hereinafter appropriated to the Agat Junior High Sinking Fund, then at the end of each fiscal year, any balance of the Fund is reverted to the General Fund.

(d)The Treasurer of Guam shall make necessary payments to the Farmers Home Administration in accordance with the terms and conditions of the instrument(s) of indebtedness from the Agat Junior High Sinking Fund.