Use of Tax-Exempt Bond, Taxable Bond, and Other

Financing Instruments for Financing.

(a)To minimize the financing cost to the Government of Guam, financing utilized by the contractor/developer to fund the design, construction, and maintenance of the Department of Corrections shall be through tax-exempt obligations, taxable bond obligation, or other financial instruments; provided, such financing is available at interest rates determined by the Guam Economic Development Authority to be reasonable and competitive. The Guam Economic Development Authority shall be the issuer of any financial instruments or obligations unless the Guam Economic Development Authority waives its right to serve as the issuer of financial instruments or obligations. 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 that the Government of Guam pays the lowest possible interest rate so that the cost of the Government of Guam’s financing of the design and construction of the Department of Corrections, amortized through the leaseback payments from the Government of Guam to GEDA and or the contractor/developer, will be lower than regular commercial rates.

(b)I Liheslaturan Guahan, pursuant to § 50103(k) of Chapter 50, Title 12, Guam Code Annotated, hereby authorizes the Guam Economic Development Authority to issue one or more additional series of tax-exempt and/or taxable obligations (in any case, the “bonds”) for the purpose of financing the Department of COL11/30/2021 CH. 90 CORRECTIONS Corrections Adult Correctional Facility, in an aggregate principal amount not to exceed Eighty Million Dollars ($80,000,000) for the following purposes:

(1)to finance the design, construction, and/or the maintenance of the Department of Corrections Adult Correctional Facility;

(2)to fund a deposit to a debt service reserve fund;

(3)to fund capitalized interest with respect to the bonds; and

(4)to pay expenses relating to the authorization, sale, and issuance of the bonds, including without limitation, printing costs, costs of reproducing documents, credit enhancement fees, underwriting, legal, feasibility, financial advisory and accounting fees and charges, fees paid to banks, or other financial institutions providing credit enhancement fees, costs of credit ratings and other costs, charges and fees in connection with the issuance, sale, and delivery of the bonds, subject to the following additional conditions:

(A)The terms and conditions of the bonds shall be as determined by the Guam Economic Development Authority by the execution of a certificate, trust agreement or indenture authorizing the issuance of the bonds; provided, however, that such terms and conditions shall be consistent with this Section, that the bonds shall have a final maturity not to exceed thirty

(30)years; and an interest rate not to exceed seven percent (7%).

(B)No bonds authorized by this Section shall be sold until the Board of Directors of Guam Economic Development Authority has approved the sale by resolution, as provided in Chapter 50 of Title 12, Guam Code Annotated.

(C)The issuance of bonds pursuant to this Section shall not be subject to the approval of the voters of Guam. COL11/30/2021 CH. 90 CORRECTIONS