The Lender may use as a source of funds to make loans under the LOC, money from tax-free bonds, if such tax free bonds are available for any portion of the loans of the lender. Guam acknowledges and understands that at least as to the LOC loans repaid by FEMA reimbursement, that are not tax exempt, but the lender may obtain tax-exempt funds as a source of loans made and secured by Section 30 funds or other Guam assets, if available, so as to reduce the interest cost on the loans to Guam. However, Guam shall have no responsibility whatsoever for, or in connection with, repayment of the bonds, or any other requirements imposed by the bonds, which shall be the sole responsibility of the lender. There shall be no contractual privity or relation between Guam and the bond holders, or anyone else that has responsibility under the bonds. SOURCE: Added by P.L. 26-174:10 (Jan. 5, 2003); codified by Compiler.
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