7.1444.3 Loans to the American Samoa Government.

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(a) In accordance with the provisions of section 7.1444(g)(3), which limits any investment in obligations or other instruments issued or guaranteed by the government to no more than ten percent of Fund assets at cost, and in addition to section 7.1444.2, which authorized borrowing by the government of five million dollars ($5,000,000), the Fund is authorized to lend to the American Samoa Government and the American Samoa Government is authorized to borrow from the Retirement Fund the sum of thirteen million dollars ($13,000,000) on the following conditions:

(1) interest on the loan would be set at a rate equal to the then current market rate of United States Government bonds or notes of similar term;

(2) interest and principal payments on such loan would be amortized over a ten-year term and payments made quarterly;

(3) repayment of the loan would be guaranteed and paid for, directly to the fund, by earmarked revenue measures passed by the Legislature and approved by the Governor in installments as required by paragraph (2) above, or as agreed upon by the board of trustees and the government;

(4) collateral, in the form of a pledge of specific real property with a marketable commercial value equal to the amount of the obligation must be furnished to guarantee the ultimate satisfaction of any such obligation; and

(5) other terms and conditions as determined jointly by the trustees of the fund and the government.

(b) The loan proceeds shall be placed in an earmarked fund and used exclusively for the following purposes and in the following priority:

(1) fund payroll for Fiscal Year 1998 for government employees, $4,500,000;

(2) pay individual tax refund, $3,500,000; and

(3) pay government’s accounts payables to vendors, $5,000,000.

Funds from the said loan proceeds that remain unexpended on October 1, 1998, in any one of the three categories above shall not be expended for any other purpose unless resubmitted to the Legislature for further appropriation.

(c) Employees of the government will be restored to and guaranteed a minimum 40-hour work week.

History: 1998, PL 25-30 § 1.