Chapter 49

COL 11060917GCA EDUCATION CH.49SCHOOL FINANCING 1CHAPTER 49 SCHOOL FINANCING SOURCE: Chapter 49 added by P.L. 28 -068:II:I:18 (Sept. 30, 2005). § 49001. 2005 Revenue School Improvement Bonds. § 49001. 2005 Revenue School Improvement Bonds. (a) Authorization of Issuance of Revenue School Improvement Bo nds. IMaga’lahen Guåhan is authorized to issue new bonds of the government of Guam in an aggregate principal amount not to exceed Seventeen Million Dollars ($17,000,000) to fund all or a portion of the capital outlay and capital improvement projects desc ribed herein, and paying expenses incurred in connection with the issuance of such new bonds; provided, however, that the issuance of the new bonds shall not violate the debt limitation provisions of 48 U.S.C. §1423a. (b) Terms and Conditions Determined by Indenture. The terms and conditions of the bonds shall be as determined by I Maga’lahi bythe execution of an indenture securing the bonds upon or before the issuance of the bonds. The indenture shall contain such terms and conditions as are consistent w ith this Section. (c) Valid and Binding Obligation. Tothe extent that the debt limitation provisions of 48 U.S.C.

the bonds. The indenture shall contain such terms and conditions as are consistent w ith this Section. (c) Valid and Binding Obligation. Tothe extent that the debt limitation provisions of 48 U.S.C. §1423a are not violated, any bonds authorized by this Section shall constitute the valid and legally binding limited obligations of the gover nment of Guam payable solely from and secured by a pledge of the revenues pledged pursuant to Subsection (d) of this Section. (d) Pledge of Revenues; Not a General Obligation. There is hereby established the School Improvement Fund, hereinafter known as th e ‛SIF’. Any and all revenues derived from the issuance of new and renewal licenses issued by the Business License Branch of the Department of Revenue and Taxation in Guam, and all fees and penalties collected by the Department of Education , except as res tricted by federal law, shall be deposited in the SI F. All funds held in the SIF may be pledged to secure the repayment of any bonds issued under this Section and to pay costs incurred in the issuance or administration of the bonds. Any pledge made to sec ure the bonds shall be valid and binding from the time the pledge is made.

s issued under this Section and to pay costs incurred in the issuance or administration of the bonds. Any pledge made to sec ure the bonds shall be valid and binding from the time the pledge is made. The revenues pledged and thereafter received by the government of Guam or by any trustee, depository or custodian shall be deposited in a separate account and shall be COL 11060917GCA EDUCATION CH.49SCHOOL FINANCING 2immediately s ubject to the lien of such pledge without any physic al delivery thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the government of Guam or su ch trustee, depository or custodian, regardless of whether the parties have notice thereof. The indenture or agreement by which such pledge is created need not be recorded. All such fees and penalties, to the extent so pledged, are hereby continuously appropriated for such purpose. The bonds shall not be, and shall state on their face that they are not, general obligations of the government of Guam. (e) Waiver of Immunity.

are hereby continuously appropriated for such purpose. The bonds shall not be, and shall state on their face that they are not, general obligations of the government of Guam. (e) 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 bonds, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam. (f) 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 conditi ons not inconsistent with this Section, including covenants relating to the maintenance of revenues, shall be as specified in the indenture approved by I Maga’lahi authorizing the issuance of the bonds. The indenture may appoint one or more trustees or ot her fiduciaries authorized to receive and hold in trust the proceeds of the bonds and revenues relating thereto, to protect the rights of

e bonds. The indenture may appoint one or more trustees or ot her fiduciaries authorized to receive and hold in trust the proceeds of the bonds and revenues relating thereto, to protect the rights of bondholders and to perform such other duties as m ay be specified in the indenture. I Maga’lahi is also authorized to execute, on behalf of the government of Guam, any appropriate agreements, certificate s or other instruments relating to the bonds, the sale of the bonds and payment of the bonds being refunded. The indenture shall be subject to the approval of I Liheslatu ran Guåhan . (g) Authorization for Credit Enhancement. I Maga’lahi 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 secur ity 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 or int erest on the bonds.

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 or int erest on the bonds. Any such reimbursement obligation shall be payable solely from, COL 11060917GCA EDUCATION CH.49SCHOOL FINANCING 3and may be secured by a pledge of, the revenues described in Subsection (d) of this Section. (h) Use of Proceeds from the Sale of the Bonds. Proceeds from the sale of the bonds shall be used solely to fund all or a portion of the projects enumerated in Subsection (j) of this Section, and to pay expenses relating to the authorization, sale and issuance of the bonds and the payment of the bonds being refunded, including, with out limitation, printing costs, costs of reproducing documents, bond 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, escrow agent fees and other costs, charges and fees in connection with the issuance, sale and delivery of the bonds and the payment of

charges for execution, transportation and safekeeping of bonds, escrow agent fees and other costs, charges and fees in connection with the issuance, sale and delivery of the bonds and the payment of the bonds being refunded. (i) No Personal Liability Exce pt for Failure to Perform Ministerial Duty. 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 i n 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. (j) Proceeds. The proceeds shall be expended for the following schoo l improvement projects: (1) design, repair, renovation and reconstruction of facilities that are part of public schools in Guam, inclusive of restrooms, classrooms, cafeterias, labs and other such facilities as determined by the Superintendent of Education , provided that no such work may be performed on a facility that is not a school; and (2) purchase and upgrading of school air conditioning systems, school fire alarm and

Superintendent of Education , provided that no such work may be performed on a facility that is not a school; and (2) purchase and upgrading of school air conditioning systems, school fire alarm and safety systems and classroom computers, as determined by the Superintendent of Educat ion. (k) Alternative Financing. Should I Maga’lahi determine that 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 Federal G overnment will better serve the needs of the school system and the people of Guam, I Maga’lahi is authorized to pursue such financing by pledging the revenues detailed in this Section, provided that the proceeds of such alternative financing shall COL 11060917GCA EDUCATION CH.49SCHOOL FINANCING 4be as au thorized by this Section and provided further that any instrument of such financing shall be subject to the approval of ILiheslaturan Guåhan before execution. (l) Assistance by GEDCA. The Guam Economic Development and Commerce Authority shall provide su ch assistance as I Maga’lahi requires or requests in fulfilling the purpose of this Section.

execution. (l) Assistance by GEDCA. The Guam Economic Development and Commerce Authority shall provide su ch assistance as I Maga’lahi requires or requests in fulfilling the purpose of this Section. Such assistance will be provided without fee or compensation of any kind. 2009 NOTE: P.L. 28 -045:10 (June 6, 2005) changed the name of the Department of Educatio n to the Guam Public School System. P.L. 30 -050:2 (July 14, 2009) reverted the name of the Guam Public School System to the Department of Education. References to Guam Public School System have been changed to Department of Education pursuant to P.L. 30 -050:3. ----------