§1428a — Title 48 Territories and Insular Possessions | U.S. Code

Summary

Before Guam can get money under this law, its government must send a plan to the Secretary of the Interior and get it approved. The plan must name one or more Guam agencies to run the program and explain how the money will be used to boost the economy, including loans and loan guarantees through a revolving fund to help private businesses. Any loan under the plan can be for up to 25 years. Interest (not counting insurance or service fees) must be a reasonable rate approved by the Secretary, but never less than the average yield on U.S. marketable obligations on the last day of the month before the loan, rounded to the nearest one-eighth of 1 percent (rate set by the Treasury on request). Insurance or guarantee fees should match the expected costs and risks, as decided by the agency running the fund.

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.

Editorial Notes

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

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

Summary

Title 48, §1428a

Notes & Related Subsidiaries

Editorial Notes

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