§1425b — Title 48 Territories and Insular Possessions | U.S. Code

Summary

Guam’s Legislature can pass a law letting a Guam authority borrow money and sell notes, bonds, or other IOUs with whatever terms, security, and length the Legislature allows, even if the Organic Act of Guam or other federal laws would normally stop it. Those notes, bonds, and IOUs are only the responsibility of that authority, not the United States or Guam itself, and they do not count as Guam or U.S. government debt under federal limits on borrowing.

Title 48, §1425b

Territories and Insular Possessions — Source: USLM XML via OLRC

The Legislature of Guam may by law authorize such authority, any provision of the Organic Act of Guam [48 U.S.C. 1421 et seq.], or any other Act of Congress to the contrary notwithstanding, to borrow money and to issue notes, bonds, and other obligations of such character and maturity, with such security, and in such manner as the legislature may provide. Such notes, bonds, and other obligations shall not be a debt of the United States, or of Guam other than such authority, nor constitute a debt, indebtedness, or the borrowing of money within the meaning of any limitation or restriction on the issuance of notes, bonds, or other obligations contained in any laws of the United States applicable to Guam or to any agency thereof.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Organic Act of Guam, referred to in text, is act Aug. 1, 1950, ch. 512, 64 Stat. 384, which is classified generally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 1421 of this title and Tables. Codification Section was not enacted as part of the Organic Act of Guam which comprises this chapter.

§1425b Issuance of notes, bonds, and obligations