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Title 48, Territories and Insular PossessionsRelease 119-102

§1428a Submission of Plan for Use of Funds; Contents of Plan; Term, Interest Rate, and Premium Charge of Loan

Title 48 › CHAPTER 8A — GUAM › SUBCHAPTER VI — GUAM DEVELOPMENT FUND › § 1428a

Last updated Aug 21, 2026|Official source

Summary

Before Guam can get any money under this law, its government must send the Secretary of the Interior a plan and get it approved. The plan must name the agency or agencies that will run the program and explain the rules and steps for using a revolving fund to help Guam’s economy through loans and loan guarantees for private businesses. Any loan made under the plan can be no longer than 25 years. Interest (not counting insurance premiums or service fees) must be a rate the Secretary approves, but never lower than the average yield on U.S. marketable government securities as of the last day of the month before the loan, rounded to the nearest one‑eighth of 1 percent. The Secretary of the Treasury sets that yield when asked by Guam’s authorized agency. Insurance or guarantee premiums must match the expenses and risks, as decided by the agency running the fund.

Full Legal Text

Title 48, §1428a

Territories and Insular Possessions, Source: USLM XML via OLRC

Prior to receiving any funds pursuant to this subchapter the government of Guam shall submit to the Secretary of the Interior a plan for the use of such funds which meets the requirements of this section and is approved by the Secretary. The plan shall designate an agency or agencies of such government as the agency or agencies for the administration of the plan and shall set forth the policies and procedures to be followed in furthering the economic development of Guam through a program which shall include and make provision for loans and loan guarantees to promote the development of private enterprise and private industry in Guam through a revolving fund for such purposes: Provided, That the term of any loan made pursuant to the plan shall not exceed twenty-five years; that such loans shall bear interest (exclusive of premium charges for insurance, and service charges, if any) at such rate per annum as is determined to be reasonable and as approved by the Secretary, but in no event less than a rate equal to the average yield on outstanding marketable obligations of the United States as of the last day of the month preceding the date of the loan, adjusted to the nearest one-eighth of 1 per centum, which rate shall be determined by the Secretary of the Treasury upon the request of the authorized agency or agencies of the government of Guam; and that premium charges for the insurance and guarantee of loans shall be commensurate, in the judgment of the agency or agencies administering the fund, with expenses and risks covered.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was not enacted as part of the Organic Act of Guam which comprises this chapter.

Reference

Citations & Metadata

Citation

48 U.S.C. § 1428a

Title 48, Territories and Insular Possessions

Last Updated

Aug 21, 2026

Release point: 119-102