11.3009 Retirement fund quarantine of American Samoa Government refunding bonds.

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(a) The American Samoa Government Employees Retirement Fund is authorized by A.S.C.A., Section 7.1444 to undertake, by action of its Board of Trustees, to guarantee the payment of the principal of and interest on bonds issued by the American Samoa finance committee for the purpose of refunding outstanding obligations of American Samoa Government which refunding bonds may be issued in the amount of not to exceed $19,000,000. The payment of amounts due, if any, under such a guarantee will be made out of any assets of the Retirement Fund and the Retirement Fund is authorized to secure its guarantee by the pledge of any of its assets. The making of any advance of funds by the Retirement Fund pursuant to such guaranty shall be deemed a loan to American Samoa Government to be repaid on such terms as shall be agreed upon between the finance committee and the Retirement Fund. The Board of Trustees may authorize the execution of, and entry by the Retirement Fund into, such agreements, conveyances, guarantees, assignments, pledges and all other documents as are necessary or useful for the making and implementation of such a guarantee.

(b) That part of any loan so made which bears the same ratio to the total amount of such loan as the ratio the refunded obligations of the American Samoa Government to the Retirement Fund bears to the original principal amount of refunding bonds shall not be counted as an “obligation issued by the Government” for purposes of the limitation imposed by A.S.C.A., Section 7.1444(g)(3).

(c) The Finance Committee is authorized to so contract and to secure any loan so made by the Retirement Fund to American Samoa Government by the mortgage or pledge of any physical asset of American Samoa Government, including, but not limited to, its interest in the Executive Office Building.

(d) Such a guarantee, once executed and relied upon by the purchaser of such refunding bonds wholly or partially secured thereby, shall be deemed valid and enforceable under the laws of American Samoa and no part of the authorization or authority for such refunding bonds, such a guarantee or any other security therefor shall be repealed or modified in a manner detrimental to the owners of such bonds so long as such bonds remain outstanding.

History: 2000, PL 26-24.