Authorization to Enter into Long-Term Leases

For the purpose of facilitating the financing of the design, construction and maintenance of an Education Facility encompassed by this Act, the government of Guam or an Education Agency, as the case may be, is authorized to lease, if required, to the Contractor sufficient government of Guam real property on which to construct, convert or rehabilitate an Education Facility; provided, such property is in the inventory of the Education Agency or the government of Guam. The property may be the site of an existing Education Facility under the control of an Education Agency, which existing facility may be COL5/19/2021 CH. 58A - Ma Kåhat Act of 2008 converted, rehabilitated or demolished and rebuilt under the provisions of this Act. The Education Agency is also authorized to lease back from the Contractor the property for a period mutually agreed upon between the Education Agency and the Contractor as may be reasonably necessary to amortize over the Lease-Back Period the costs associated with the financing, design and construction of the Education Facility. In no event shall the end of such Lease-Back Period be later than the date thirty

(30)years from the scheduled date of completion of the Education Facility. The Lease-Back may be structured as an annually renewable lease with provision for automatic renewals to the extent that pledged revenue under Section 58A109 is available. The Lease-Back shall not be construed as a debt under any applicable debt limitation under the Guam Organic Act or Guam law.