Use of Qualified School Construction Bonds

To minimize the financing cost to the Education Agency, financing utilized by the Contractor to fund the design and construction of the Education Facility shall be through the use of Qualified School Construction Bonds in an amount not to exceed Twenty-One Million Eight Hundred Eighteen Thousand Dollars ($21,818,000) as authorized under Section 1521 of P.L. 111-5 (The American Recovery and Reinvestment Act of 2009) and the issuance of tax exempt bonds or lease certificates, provided such financing is available at an interest rate of no more than eight and a half percent (8.5%). Alternatively, the Contractor may use an alternative method of financing, including, but not limited to, a short term debt, mortgage, loan, federally guaranteed loan or loan by an instrumentality of the United States of America, if such financing will better serve the needs of the people of Guam. Such alternative financing shall be approved by I Liheslaturan Guåhan. The purpose for the requirements of this Section is to assure the Education Agency pays the lowest possible net interest rate so that the cost to the Education Agency of financing the design and construction of an Education Facility, amortized through the Lease-Back payments from the Education Agency to the Contractor, will be lower than regular commercial rates.