Authorization of Issuance of Limited Obligation

Infrastructure Improvement Bonds. The Governor of Guam is authorized to issue on behalf of the Government an issue of bonds of the Government consisting of refunding bonds and new money bonds, subject to the following requirements and limitations:

(a)The issuance of the bonds shall not cause a violation of the debt limitation provision of Title 48 U.S.C. § 1423a (§ 11 of the Organic Act of Guam). COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS

(b)All obligation of the Government to pay debt service on the prior obligations shall be discharged concurrently with the issuance of the refunding bonds. Thereafter, any remaining debt service on the prior obligations shall be payable solely from and secured solely by a refunding escrow established for such purpose.

(c)The aggregate principal amount of refunding bonds issued shall not exceed the amount necessary to pay the prior obligations, including by funding the refunding escrow, establish a bond reserve fund allocable to the refunding bonds, and pay expenses incurred in connection with the issuance of the refunding bonds.

(d)The aggregate principal amount of new money bonds issued shall not exceed the amount necessary to fund the projects in § 22958, establish a bond reserve fund allocable to the new money bonds and to pay expenses incurred in connection with the issuance of the new money bonds.

(e)The aggregate principal amount of the bonds issued shall not exceed Eighty Million Dollars ($80,000,000).