General Obligation Bonds for Certain Capital

Projects, Including Certain Educational Facilities Projects, and for Certain General Fund Expenses.

(a)Authorization of Issuance of General Obligation Bonds for Capital Projects and General Fund Expenses. The Governor of Guam is authorized to issue two

(2)or more series of general obligation bonds of the government of Guam in an aggregate principal amount not to exceed Two Hundred Ninety-Six Million Dollars ($296,000,000) to undertake the capital projects enumerated in subsection

(m)of this Section, to provide for the payment of the general fund expenses listed in subsection

(m)of this section and to pay expenses incurred in connection with the issuance of such bonds; provided, however, that the issuance of the bonds shall not cause a violation of the debt limitation provisions of 48 U.S.C. 1423a (§ 11 of the Organic Act of Guam).

(b)Terms and Conditions Determined by Certificate. The terms and conditions of the bonds shall be as determined by the Governor by the execution of a certificate authorizing the issuance of the bonds upon or prior to the issuance of the bonds; provided, however, that such terms and conditions shall be consistent with this Section, and that the bonds shall mature not later than December 1, 2023 and shall bear interest at such rates and be sold for such price or prices as shall result in a yield to the bondholders not exceeding eight percent 8% per annum. The certificate of the Governor shall separately designate the amount of each maturity of bonds issued for each of the capital projects enumerated in subsection

(m)of this Section and for general fund expenses, but shall also permit reallocation and redesignation of such bonds, with approval from the Legislature.

(c)Valid and Binding General Obligation. Any bonds authorized by this Section shall constitute the valid and binding general obligations of the government of Guam. The government of Guam pledges its full faith and credit for the punctual payment of both principal of and interest on the bonds. There shall be collected COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS annually in the same manner and at the same time as government revenue for other purposes is collected, such sum as is required to pay the principal of and interest on the bonds. All officers charged by law with any duty in the collection of the revenues of the government shall do every lawful thing necessary to collect such sum. The validity of any such bonds shall not be affected by the validity or regularity of any proceedings for the implementation of the capital projects funded by the bonds or for the payment of the general fund expenses funded by the bonds.

(d)Appropriations from the General Fund. There are hereby appropriated from the General Fund such sums as will equal in each year the amount of money necessary to pay the principal and interest on such bonds.

(e)Additional Parity Bonds. Nothing in this Section shall be construed to prevent the government of Guam from issuing, after appropriate enabling legislation, other obligations of the government secured by the general obligation of the government on a parity with the bonds authorized by this Section.

(f)Waiver of Immunity. Notwithstanding any substantive or procedural provision of Chapter 6 of Title 5, Guam Code Annotated, the government of Guam waives immunity from any suit or action in contract on the bonds, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

(g)Form of Bonds; Covenants; Appointment of Fiduciaries. The technical form and language of the bonds, including provisions for execution, exchange, transfer, registration, paying agency, lost or mutilated bonds, negotiability, cancellation and other terms or conditions not inconsistent with this Section, including covenants relating to the collection of revenues, shall be as specified in the certificate executed by the Governor authorizing the issuance of the bonds. The certificate may appoint one

(1)or more trustees, co-trustees or other fiduciaries authorized to receive and hold in trust the proceeds of the bonds and monies relating thereto, to protect the rights of bondholders and to perform such other duties as may be specified in the certificate. The Governor is also authorized to execute, on behalf of the COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS government of Guam, any appropriate agreements, certificates or other instruments relating to the bonds and the sale of the bonds.

(h)Authorization for Credit Enhancement. The Governor is authorized to enter into such contracts or agreements with such banks, insurance companies or other financial institutions as he determines are necessary or desirable to improve the security and marketability of the bonds issued under this Section. Such contracts or agreements may contain an obligation to reimburse, with interest, any such banks, insurance companies or other financial institutions for advances used to pay principal of or interest on the bonds. Any such reimbursement obligation shall be a general obligation of the government of Guam, and any such adva2nce, if necessary, shall be treated as creating a reimbursement obligation issued to refund the bonds.

(i)Use of Proceeds from the Sale of the Bonds. Proceeds from the sale of the bonds shall be used solely to implement and equip the capital projects enumerated in subsection

(m)of this Section, to pay general fund expenses listed in subsection

(m)of this section and which are otherwise appropriated by the Legislature, to establish necessary reserves, and to pay expenses relating to the authorization, sale and issuance of the bonds, including, without limitation, printing costs, costs of reproducing documents, bonds insurance premiums, underwriting, legal and accounting fees and charges, fees paid to banks or other financial institutions providing credit enhancement, costs of credit ratings, fees and charges for execution, transportation and safekeeping of bonds and other costs, charges and fees in connection with the issuance, sale and delivery of the bonds. The fees charged by the Guam Economic Development Authority for this bond issuance shall be waived.

(j)No Personal Liability. No employee or elected official of the government of Guam shall be individually or personally liable for the payment of any amounts due on any bonds issued under this Section, or for any other liability arising in connection with the bonds; provided, however, that nothing in this Section shall relieve any employee or elected official from the performance of any ministerial duty required by law. COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(k)University of Guam Bond Fund. There is hereby created, separate and apart from other funds of the government of Guam, a fund known as the “University of Guam Bond Fund” (the “UOG Bond Fund”). The UOG Bond Fund shall not be commingled with either the General Fund, the Current Fund of the University of Guam, or any other fund of the government of Guam. The UOG Bond Fund shall be held in an account or accounts at a Guam financial institution or institutions separate and apart from all other accounts and funds of the government of Guam. All tuition revenues received by or on behalf of the University of Guam shall be deposited in the UOG Bond Fund and shall be accounted for and used periodically only for the following purposes and in the following order:

(1)On a day when monies are remitted from the General Fund to any trustee, co-trustee or paying agent for the bonds to either pay the principal of and interest on the bonds issued for the capital project described in subsection

(m)item

(5)or to accumulate the amounts necessary to pay the principal of or interest on said bonds, there shall immediately be transferred from the University of Guam

(UOG)Bond Fund to the General Fund an amount equal to, but not in excess of, the amount remitted from the General Fund. If the amount so transferred is not sufficient to fully reimburse the remittance, the amount of the deficiency shall be transferred immediately as it becomes available in the UOG Bond Fund, together with interest from the remittance date to the date of transfer at a rate equal to the yield on the bonds. Such transfers shall continue until November 15, 2018 or until a date mutually agreed upon by the University of Guam and I Maga’lahen Guåhan. Payments pursuant hereto made from the UOG Bond fund shall be adjusted downwards to reflect the interest rates of refinanced bonds if said interest rates are lower.

(2)On the dates on which monies are transferred to the General Fund pursuant to paragraph

(1)of this subsection

(k)of this Section, if such transfer is sufficient to fully reimburse the General Fund (with interest, if required), the balance remaining in the UOG Bond Fund shall be transferred to the COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS Current Fund of the University of Guam to be utilized only to implement the Physical Master Plan of the University. Such tuition revenue collections shall not be pledged to the payment of amounts due on the bonds, and this subsection

(k)may be amended at any time by subsequent act of the Legislature. Nothing in this Section shall be construed to prevent the government of Guam from issuing, after appropriate enabling legislation, for the benefit of the University of Guam, other general obligations of the government secured by such tuition revenues on a parity with the bonds authorized by this Section. In addition, nothing in this Section shall be construed to prevent the University of Guam from issuing, after appropriate enabling legislation, revenue bonds or general obligations of the University of Guam secured by such tuition revenues on a parity with the bonds authorized by this Section.

(3)Notwithstanding Paragraphs

(1)through

(3)of this Subsection (k), if the Board of Regent of the University of Guam (University) elects to issue revenue bonds of the University pursuant to Chapter 17 of Title 17 of the Guam Code Annotated, tuition revenues received by or on behalf of the University may be pledged as a first priority to secure the payment of the obligations of the University with respect to the revenue bonds, and may be used to pay such obligations to create or replenish required reserves relating such revenue bonds, and to pay expenses directly related to the issuance and payment of such revenue bonds. In such event tuition revenues shall be deposited, used and applied as provided in the bond indenture, trust agreement or loan agreement relating to such revenue bonds.

(l)Guam Educational Facilities Fund. There is continued in existence, separate and apart from other funds of the government of Guam, a fund known as the “Guam Educational Facilities Fund” (the GEF Fund). The GEF Fund shall not be commingled with the General Fund or any other fund of the government of Guam. The GEF Fund shall be held in an account or accounts at a Guam financial institution or institutions separate and apart from all other accounts and funds of the government of Guam. All real COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS property tax revenues received by or on behalf of the government of Guam pursuant to § 24103, Title 11, Guam Code Annotated, shall be deposited in the GEF Fund and shall be accounted for and used periodically only for the following purposes and in the following order:

(1)On the dates on which monies are remitted from the General Fund to any trustee, co-trustee or paying agent for bonds issued pursuant to this Section or pursuant to § 22435, Chapter 22 of Title 5 Guam Code Annotated, for the purpose of either

(A)paying the principal of and interest on the bonds designated as having been issued for the capital projects enumerated in items (1), (2), (3), (4), (6),

(7)and

(8)of subsection

(m)of this Section, or paying the principal of and interest on the bonds issued pursuant to § 22435, Chapter 22 of Title 5 Guam Code Annotated, or

(B)accumulating the amounts necessary to pay the principal of or interest on such bonds, there shall be transferred from the GEF Fund to the General Fund amounts equal to, but not in excess of, the amounts remitted from the General Fund for such purposes, and in the event that the amount so transferred on any such date is insufficient to fully reimburse the amount so remitted, the amount of the insufficiency shall be transferred as soon thereafter as it becomes available in the GEF Fund, together with interest from such remittance date to such date of transfer at a rate equal to the yield on the bonds.

(2)On the dates on which monies are transferred to the General Fund pursuant to paragraph

(1)of this subsection

(1)of this Section, if such transfer is sufficient to fully reimburse the General Fund, (with interest, if required), the balance remaining in the GEF Fund shall remain in the GEF Fund and shall only be appropriated by I Liheslatura for the purpose of constructing, refurbishing, replacing and funding educational facilities and to fund the operations of the Guam Community College. Such tax collections shall not be pledged to the payment of amounts due on such bonds and this subsection

(l)may be amended at any time by subsequent act of I Liheslatura. Nothing in this Section or § 22435 of Chapter 22 of Title 5 Guam Code COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS Annotated shall be construed to prevent the government of Guam from issuing, after appropriate enabling legislation, for the benefit of the government of Guam, other general obligations or revenue obligations of the government secured by said real property tax revenues. The repayment obligation of the University of Guam described Title 5 GCA § 22425

(k)shall continue.

(m)The capital projects to be implemented and equipped with the proceeds of the bonds authorized by this Section are as follows: Allocated Amounts: Capital Projects:

(1)

(2)

(3)

(4)

(5)

(6)High school located in Santa Rita, Guam Including a sewage treatment plant, infrastructure and off-site development, related to the $76,000,000; high school in Santa Rita, Guam Elementary school located in Tamuning, Guam Elementary school located in Astumbo, Dededo, Guam Buildings at the University of Guam as follows: College of Arts and Sciences Building; renovation and addition to the Health Science Building; Plant Maintenance Building; Building II for the College of Agriculture and Life Sciences; College of Business and Public Administration; Fine Arts Building; and the Student Center, For the purchase of equipment and furniture and the relocation $21,000,000; COL4/6/2022 $15,000,000; $15,000,000; $28,000,000; $ 3,000,000; CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(7)expenses for students during construction of projects set out in items (1),

(3)and

(4)of this subsection (m), including temporary classrooms, To the extent of any bond proceeds not required for the projects listed in Items

(1)through

(6)of this Subsection (m), any remaining balance other than the portions designated to be used for the Northern High School, or to pay General Fund expenses, may be applied to the cost of:

(A)repairing or reconstructing the Inarajan Elementary School;

(B)repairing or reconstructing the earthquake-damaged OrdotChalan Pago Elementary School;

(C)reconstructing the earthquake-damaged gymnasium and classrooms at Inarajan High School;

(D)repairing and reconstructing Upi Elementary School;

(E)repairing or reconstructing earthquake damage at any other school;

(F)design and construction of additional elementary schools in Guam, subject to Subsection

(n)of this Section;

(G)needed infrastructure improvements for schools;

(H)the completion of design plans for the Northern High School;

(I)the design, construction COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS and renovation of facilities, and capital improvement projects on the existing campus of the Guam Community College not to exceed One Million One Hundred Thousand Dollars ($1,100,000);

(J)The Department of Education’s ten percent (10%) local share, over and above the approved FEMA funding, for the architectural, engineering design, construction and repair of the Jose Rios Middle School (formerly Piti Middle School) from damage resulting from Super Typhoon Paka and to add an additional classroom for Special Education needs;

(K)Perform feasibility studies, pro forma cost projections and other documents necessary to justify and/or obtain financing/leasing of additional schools or education facilities;

(L)Replace two

(2)classrooms destroyed by fire at L.P. Untalan Middle School;

(M)Repair, replace, and/or modify air conditioners and air conditioning electrical systems for schools and repair of water infrastructure at the school. The Department of Education shall evaluate the following options on a school-by-school basis:

(1)the cost to repair the units and electrical systems,

(2)the cost to replace the air conditioning COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(8)systems with new systems,

(3)the cost to install single units in each classroom, office or other enclosed facility,

(4)the cost to add expansion units to existing systems,

(5)any combination of the four

(4)options herein and

(6)the recurring cost to operate and maintain each of the four

(4)options herein. The Department of Education shall conduct a public hearing at each affected school prior to engaging any firm to supply systems, parts, or perform repairs. Any system purchased herein shall comply with the comfort and air quality standards set forth for Heating, Ventilation and Air Conditioning

(HVAC)equipment as provided for by Chapter 5 of the Federal GSA’s Facilities Standards For Public Buildings Service (Revised November 2000 B PBSP100); and

(N)The Superintendent of the Department of Education (“DOE”), in consultation with the Guam Education Policy Board (“Board”) shall have the authority and flexibility to review, and if necessary, reprogram such funds appropriated herein to DOE, to meet the needs of DOE, for repair, renovation and upgrade of public school facilities. To the extent of any bond proceeds not required for the projects listed in Items

(A)COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(9)through

(F)of this Subsection (m), any remaining balance, other than the portions designated to be used for the Northern High School or to pay general fund expenses, may be applied to the costs of:

(A)repairing or reconstructing the Inarajan Elementary School,

(B)repairing or reconstructing the earthquake damaged OrdotChalan Pago Elementary School,

(C)reconstructing the earthquake damaged gymnasium and classrooms at Inarajan High School,

(D)repairing or reconstructing Upi Elementary School,

(E)repairing or reconstructing earthquake damage at any other school,

(F)construction of additional elementary schools in northern Guam, subject to subsection

(n)of this Section,

(G)needed infrastructure improvements for schools,

(H)the completion of design plans for the Northern High School, or

(I)other projects approved by subsequent legislation. The aggregate principal amount of bonds authorized to be issued to provide for the payment of general fund expenses is One Hundred Fifteen Million Dollars ($115,000,000), the proceeds of which to be used exclusively for the purposes outlined below. The COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS general fund expenses authorized to be paid with the proceeds of such bonds are income tax refund payments, supplemental retirement payments, transfer payments to governmental agencies, and vendor payments, but in each case only to the extent such expenses have been incurred or previously obligated by the government for goods, services, and obligations rendered, received, or incurred prior to May 15, 1995.

(n)Uniform Design of Projects. In utilizing the bond proceeds authorized by projects set out in items

(3)and

(4)of subsection

(m)of this Section, in order to optimize funds and not replicate services, a standard and uniform design for all elementary schools, shall be employed in their construction, unless the topography and size of the land for such a school prevents the use of such a standard and uniform design. Such standard and uniform designs shall be as energy efficient as is practical, and shall conform to island styles.

(o)Head Start Classrooms. The elementary schools described in items

(3)and

(4)of subsection

(m)of this Section and whose construction is to be funded by this Act shall include a minimum of five

(5)“Head Start” classrooms at each school.

(p)Selection of Participants. In view of the urgency for the issuance of the bonds for the purpose of financing general fund expenses and for the infrastructure related to the high school located in Santa Rita, the Governor is hereby authorized to utilize such method as he deems appropriate for the selection of all participants in connection with the issuance and sale of those bonds, including trustees, depositories, paying agents, underwriters, counsel, any credit enhancement provider and any other participants; provided, however, that such selection shall be subject to any provision of law which requires bidding, other competitive process, or any other procedure with respect to such COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS selection, except that the Governor may limit the requests for proposals for services associated with the issuance of the bonds to those firms that have previously participated in bond issues for Guam.

(q)Notwithstanding any other provision of law, any additional real property tax revenues received as a result of the most recent valuation of real property due to commence during the calendar years 2013 and 2014 is hereby continuously reserved, subject to annual appropriation, in an amount not to exceed Eight Million Five Hundred Thousand Dollars ($8,500,000), from the Guam Educational Facilities Fund in the amounts and for the purposes set forth in this Subsection:

(1)The sum of One Million One Hundred Fifty-Eight Thousand Two Hundred Eighty-Three Dollars ($1,158,283), beginning in FY 2015, for the construction of the Student Services Center and the Engineering Annex facility at the University of Guam, as a source of payment to the University of Guam Capital Improvements Fund for the purpose of paying rental payments due under the lease-leaseback agreements with the University of Guam Endowment Foundation for a term of forty

(40)years; including any lease-leaseback agreements entered into in connection with the interim financing;

(2)The sum of Two Hundred Seventy-eight Thousand Nine Hundred Twenty-one Dollars and Fifty-two Cents ($278,921.52), beginning in FY 2014 for forty

(40)years, for the construction or renovation of Building 100 and the DNA Laboratory at the Guam Community College;

(3)The sum of One Hundred Thirty-two Thousand Fifteen Dollars ($132,015) to the Guam Public Library System to hire a Guam Librarian at Ninety-three Thousand Three Hundred Seventy-seven Dollars ($93,377), and a Computer Analyst II at Thirty-eight Thousand Six Hundred Thirty-eight Dollars ($38,638);

(4)The sum of One Million Seven Hundred Seven Thousand Six Hundred Fifty-two Dollars ($1,707,652) to the Guam Department of Education for the renovation or COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS construction of a new Simon Sanchez High School.

(5)The sum of One Million Two Hundred Thousand Dollars ($1,200,000) for rental payments under the lease and the lease-back as described in Chapter 58D of Title 5, Guam Code Annotated.

(6)other than the portions designated to be used for in Items (1), (2), (3),

(4)and

(5)of this Subsection, eighty percent (80%) of the remaining balance for rental payments due under the lease-leaseback agreement with GDOE secured for the renovation or construction of a new Simon Sanchez High School, to include its athletic facilities, and other Guam Department of Education public school facilities requiring new construction, rehabilitation or maintenance;

(7)Early Childhood Program Fund. There is hereby created, separate and apart from all other funds of the government of Guam, a fund known as the “Early Childhood Program Fund.” All monies received by or on behalf of the government of Guam pursuant to § 22425(q)(8) of Title 5 GCA, shall be deposited in the Fund and used for early childhood programs at the University of Guam, the Guam Community College, or the Guam Department of Education. The Fund shall not be commingled with the General Fund or any other funds of the government of Guam, and it shall be maintained in a separate bank account. All monies in the Fund shall require legislative appropriation, and shall not be subject to any transfer authority of I Maga’lahen Guåhan.

(8)other than the portions designated to be used for in Items (1), (2), (3),

(4)and

(5)of this Subsection, 3.5% of the remaining balance for the Early Childhood Program Fund, as described in § 53101 of Title 17, Guam Code Annotated;

(9)other than the portions designated to be used for in Items (1), (2), (3),

(4)and

(5)of this Subsection, 3.5 % of the remaining balance for I Famagu’on-ta, Child Adolescent Services Division of the Guam Behavioral Health and Wellness Center, and Project Karinu. These funds shall not be subject to I Maga’lahen Guåhan’s transfer authority. COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(10)other than the portions designated to be used for in Items (1), (2),

(3)

(4)and

(5)of this Subsection, five percent (5%) of the remaining balance to the Department of Revenue and Taxation for the following:

(A)for maintenance support and sustainability of real property data and system;

(B)for the five

(5)year (quinquennial) property tax revaluation as mandated by law;

(C)for enhancements, and technological advancements related to software/hardware, and support staff necessary to improve electronic services; and

(D)for other costs directly associated with improving the efficiency of the real property tax system. The Director of the Department of Revenue and Taxation shall submit a report to I Maga’lahen Guåhan and I Liheslaturan Guåhan on a monthly basis as to the expenditures of the funds following the enactment of this Act, detailing all transactions;

(11)other than the portions designated to be used for in Items (1), (2), (3),

(4)and

(5)of this Subsection, five percent (5%) of the remaining balance shall be lock boxed for the procurement of a unified financial management information system, as recommended by consensus from the Department of Revenue and Taxation, the Department of Administration, the General Services Agency, the Office of Public Accountability, the Office of Technology, the University of Guam, the Guam Community College, the Guam Department of Education, and Guam Memorial Hospital Authority. This amount shall be subject to legislative appropriation.

(12)Other than the portions designated to be used for in Items (1),

(2)

(3)

(4)and

(5)of this Subsection, three percent (3%) of the remaining balance shall be a source of funding for island-wide school bus shelters. The Director of the Department of Public Works shall submit a report to I Maga’lahen Guåhan and I Liheslaturan Guåhan on a COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS monthly basis as to the expenditures of the funds following enactment of this Act, detailing all transactions.

(r)It is the policy of the Guam Legislature to ensure that the projects enumerated in Subsection

(m)of this Section are completed. In this respect, the Guam Legislature gives its consent and authorization to allow the transfer of funds between projects contained in Subsection (m), Items 1, 2, 3, 4, 6, 7 and 9. The Guam Legislature shall be notified in writing prior to any transfer. This Subsection shall take effect immediately.

(s)Interest earned on the bonds authorized by this Section shall be used exclusively for the projects enumerated in Subsection

(m)of this Section.

(t)Authorization of Issuance of General Obligation Loans for the Dededo Precinct and Crime Lab of the Guam Police Department. I Maga’lahen Guåhan is authorized to borrow one

(1)or more general obligation loans of the government of Guam in the aggregate principal amount not to exceed Seven Million Dollars ($7,000,000) to undertake the cost of the design, plans and construction of the Dededo Police Precinct at a cost not to exceed One Million Dollars ($1,000,000.00), and the cost of the design, plans and construction of the Crime Lab at a cost not to exceed Six Million Dollars ($6,000,000), and paying expenses incurred in connection with the issuance and closing of such loans; provided, however, that the incurring of the loans shall not cause a violation of the debt limitations provision of Title 48 U.S.C. § 1423a (§ 11 of the Organic Act of Guam).

(1)Terms and Conditions Determined by Certificate. The terms and conditions of the loans shall be determined by I Maga’lahen Guåhan by the execution of a certificate authorizing the incurring of the loans upon the incurring of the loans; provided, however, that such terms and conditions shall be consistent with this Subsection, and that the loans shall mature not later than December 31, 2013 and shall bear interest at such rates as shall result in a yield to the lending institutions not exceeding nine (9%) percent per annum.

(2)Valid and Binding General Obligation. Any loan or loans authorized by this Section shall constitute the valid and COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS binding general obligation of the government of Guam. The government of Guam pledges its full faith and credit for the punctual payment of both principal of and interest on the loans. There shall be collected annually in the same manner and at the same time as government revenue for other purposes is collected, such sum as is required to pay the principal of and interest on the loans. All officers charged by law with any duty in the collection of the revenues of the government shall do every lawful thing necessary to collect such sum. The validity of any such loans shall not be affected by the validity or regularity of any proceedings for the implementation of the capital projects funded by the loans.

(3)Appropriations from the General Fund. There are hereby appropriated from the General Fund such sums as will equal in each year the amount of money necessary to pay the principal and interest of such loans.

(4)Additional Parity Loans. Nothing in this Section shall be construed to prevent the government of Guam from issuing, after appropriate enabling legislation, other obligations of the government secured by the general obligation of the government on a parity with the loans authorized by this Subsection.

(5)Waiver of Immunity. Notwithstanding any substantive or procedural provision of Chapter 6 of Title 5 of the Guam Code Annotated, the government of Guam waives immunity from any suit or action in contract on the loans, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

(6)No Personal Liability. No employee or elected official of the government of Guam shall be individually or personally liable for the payment of any amounts due on any loans granted under this Subsection, or for any other liability arising in connection with the loans; provided, however, that nothing in this Subsection shall relieve any employee or elected official from the performance of any ministerial duty required by law. COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(7)Guam Police Department Loan Fund. There is hereby created, separate and apart from other funds of the government of Guam, a fund known as the ‘Guam Police Department Loan Fund’ (‘GPD Loan Fund’). The GPD Loan Fund shall not be commingled with either the General Fund or any other fund of the government of Guam. The GPD Loan Fund shall be held in an account or accounts at a Guam financial institution or institutions separate and apart from all other accounts or funds of the government of Guam. Annually, on or before the date payments of the principal and interest on the loan or loans are to become due, the Director of the Department of Administration shall transfer from the GPD Police Services Fund and deposit in the GPD Loan Fund the amounts necessary for the complete payment of the principal and interest then due. In the event the funds transferred from the GPD Police Services Fund is found to be insufficient, the Superior Court of Guam shall transfer from the Superior Court of Guam Building Fund and deposit in the GPD Loan Fund One Hundred Thousand Dollars ($100,000.00) annually, on or before the date payments of the principal and interest on the loan or loans are to become due, to supplement the amounts necessary for the complete payment of the principal and interest then due. If the funds transferred from the GPD Police Services Fund is sufficient for the complete payment of the principal and interest on the loan or loans, then the One Hundred Thousand Dollars ($100,000.00) transferred from the Superior Court of Guam shall be expended by GPD on cost of crime fighting equipment and training. All transfers of revenues from the GPD Police Services Fund and the Superior Court of Guam and received by or on behalf of the Guam Police Department shall be deposited in the GPD Loan Fund and shall be accounted for and used periodically only for the following purpose:

(A)on the dates on which monies are remitted from the General Fund to any lending institution for the purpose of paying the principal and interest due on the loans authorized in this Subsection of this Section, there shall be transferred from the GPD Loan Fund to the COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS General Fund amounts equal to, but not in excess of, the amounts remitted from the General Fund for such purposes.