An Act to amend the Commonwealth Development Authority Act of 1984 (P.L. 5-27)

3 The Honorable Jose R. , H o u s e of Representatives F i f th Northern Marianas 96950 Legislature and The Honorable S. Senate President F i f t h Northern Saipan, 96950 M r . Speaker and President: This i s to inform you I have l a w House B i l l No. 5-148, e n t i t l e d , "To P.L. 4-49, was passed by the Fifth Northern Marianas . House B i l l 5-148 Law No. 5-27. my signature are forwarded for your ready reference. Legislature Copies Sincerely, 0 0 0 0 0 £) 0 0 ~ommontuealtb of tbt .J}ortf)rrn .fflariana Jslanbs ®f ftct of tbr ®obrrnor ~111pa11. Jflarinnn lil:rnd, 969:,0 Lifoifoi Speaker Ccmronwealth Saipan, 01 Julian Marianas Ccmronweal th Qv1 Mr. calvo that amend D::veloprent Autl.ority," wi).ich camonwealth Legislature 20 FEB 1987 signed into No. Ccmronv.eal th No. becom2s Public bearing ~---7=7-IT~-:------ PEL~V.?ENORIO Acting Governor CC: Special Assistant for Programs and Legislative Review i '..{' ( -~ .. FOR OFFICIAL l"SE CABLE ADDRESS GOV ?-,':\1! SAiPA\ REPLY ro 5-27 HOUSE OF REPRESENTATIVES F IFTH LEGISLATURE THIRD REGULAR AN A TO AMEND P.L. NO. 4-49, DEVELOPMENT AUTHORITY. Offered by Representatives : Jose R. B . Sablan, T. Attao, Vicente M. Sablan and Edward Guerrero Date: November 14, 1986 HOUSE ACTION First and Final Reading: November 14, 1986 SENATE ACTION First Reading: January 15, 1987 Second and Final Reading: January 20, 1987 Chief Clerk House o f Representatives a Maximo PUBLIC LAW 00. HOUSE BILL NO. 5-148 NORTHERN MARIANAS COMr-t1ftlEAL TH S~SSION, 1986 • tl ,,. ~ ~ j i' COMt()t-MEJl. TH lifoifoi, Gregorio M. Deleon PUBLIC LAW 5-27 FIFTH M A R I A N A S LEGISLATURE HOUSE B I L L NO. 5-148 REGULAR SESSION, 1986 AN ACT To amend P.L. No. 4-49, Authority. B E I T ENACTED BY THE FIFTH NORTHERN MARIANAS LEGISLATURE: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 17 18 19 20 Section 1. Findings. (a ) I n furtherance of the legis lat ive of the t h Development Authority ( the "Authority") t o underwrite, purchase, own, s e l l , mortgage, or otherwise depose of stocks, debentures, securi t ies or other evidences of indebtedness i n furtherance o f the purposes o f Public Law No. 4-49 ( the "Act"), including t o stimulate the of the the Authority i s t o be authorized a n d t o make and issue bonds, notes or other obligations in furtherance o f the purposes nvest prudently al l or any portion of bonds, notes or other obligations, i n cu r i t i e s (as defined in the Act) o r i n one or insurance or policies or annuity or t y contracts, including without tation certain f u n d i n g or guaranteed contracts, a n d t o secure such bonds , notes or other obligations by such proceeds, such reinvestment or such other guarantees a n d collateral as may be required by the Authority. o f the Act and t o re the proceeds o f such cer tain S fHIRD i 15 i 1 16 I Ii NORTHERN COM ti) ~ E AL TH Canrronweal th Devel oprrent COMt-ot-MEAL TH mandate Canrronwea 1 1:x)nds, econanic development Cooirro nwe al th, empov.ered Inves trrent more endowment contracts optional annui 1 imi investrrent ag reene nts 00. PUBLIC LAW NO. 5-27 House Bill No. 5-148 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2 1 I I ! (b) I n connection w i t h the making and issuance by the Authority of such bonds, notes o r other obligations, the Authority i s t o be authorized and empowered t o waive expressly, a t or before the of the issuance o f such bonds, notes o r other obligations, any r i g h t of the Authority to issue such bonds, notes or other obligations exempt as t o principal and interest , from taxation by the possession of on of any of States, or by any s t a t e , t e r r i to ry or ted States, or any political subdivis United the (c ) The Authority i s t o be authorized a n d t o use al l o r any portion o f the proceeds o f such bonds, notes or other obligations, the reinvestment of such proceeds o f such bonds, notes or other obligations a n d earnings derived such reinvestment t o provide fo r the timely repayment o f such bonds, notes or other obligations in accordance w i t h the i r respective and the payment o f costs and expenses incidental t o such bonds, notes a n d other obligations, a n d t o use any excess earnings or other moneys derived therefrun i n of purposes of the Act , a n d t o secure bonds, notes or o ther obligations by such proceeds, such o r and l a t e ra l t h e ( d ) The t o Section t h e A c t i s f i nanc ia l advisor and w i t h respect Page . 20 : I Ii I • 22 i 2" ! -t I 25 Un then. fran furtherance such t irne enpowe red temis the reinvest~nts such other guarantees col cs may be detenni ned or pledged by Authority pursuant of 2 Authority. existing coordinator 5(a) (27} NO. 5-27 House Rill No. 5-143 House Rill No. 5-143 10 11 12 13 14 17 19 t o any i c borrowing by the t h , i t s departments, public agencies, municipalities and public corporations, and as such, the Authority has special expertise, capability a n d u n d e r s t a n d i n g and experience o f the and i t s investment potential and climate, i t s corporate a n d capital market s t ructure, t o evaluate the propriety a n d prudence o f the making a n d issuing such notes or other obligations i n furtherance o f the purposes o f the Act a n d t o reinvest prudently a l l o r any portions of the proceeds o f such bonds, notes o r other obligations, a n d t o secure such bonds a s aforesaid, subject t o t h e c o n t i n u i n g authority o f the Authority t o defer the exercise of such power pursuant t o Section of the Act. (e ) The Authority i s t o be authorized a n d empowered t o enter in to in t e res t rate exchange transactions and other financial w i t h public or private or cooperatives a n d t o l e t t e r s o f credit, pol ic ies , surety or from foreign o r i or soci a t i ons , i the m a k i n g by o f such bonds , notes o r i Page 3 ~~~'""' --, ,~"f' " PUBLIC U\W ' l, 1 publ Ccxnrronwea1 2 autonorrous 3 4 management 5 econany 6 7 8 oonds, i: 9 1 · 15 16 lO(n) similar accanmdations ir,dividuals, corporations, agencies 19 purchase insurance · 20 bJnds other similar financial guara.ntees 21 d:,111estic hank ng corporations nsu ranee 2'2 companies, sureties or 'lthe"" private individuals, 23 COl~oorationst agencies or cooperatives .. 24 25 (f) ,t,fter due ccinsid2ratic'.", the Aut heirity and issuance other obligations, I NO. 5-27 House Bill No. 5-148 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 16 17 3 25 the reinvestment o f the proceeds thereof and the use of a l l or any portion of the proceeds and earnings and any excess earnings or other moneys derived therefran i n such furtherance o f the purposes o f the Act and the entering into in t e res t ra te exchange transactions and other similar financial and the by the Authority o f l e t t e r s of credi t, insurance pol es, surety bonds and other similar f i n a n c i a l guarantees o r col la teral are defined t o be, f o r the purposes of t h i s Act, public purposes in accordance with Constitution, Article X, Section 1 a n d laws of the and found t o be consistent w i t h the public o f the Authori ty and t o sa t i s fy the general guidelines and financial prudence s e t forth i n Sections and 11 of the Act. Section 2 . Section o f P.L. 4-49 i s amended to add new subparagraphs 3 3 and 34 t o read as follows: t o and issue notes or other i n of t h i s Act, rot t o , in accordance t h i s A c t . exchange t r a n s a c t i o n s Page 4 15 18 i. 19 i 20 21 2 PUBLIC LAS~ accanrrodations the Comrro nweal th purposes JT,3 nagernent 10 11 ( 33) make !Xlrchas i ng i ci 6(a) bends, ob l i gc. ti on s furtherance of the purposes including, but limited (34) tJ e1~er into interest rate requi renents 1 • ~:,. pri\1 0te individuals, corporations, agencies or cooperatives : 24 and to purchase lftters of credit, insurance policies, i sure:.y bonds, or othc-r similar financial guarantees or . · :.- . .,,, ~~:~· .... ✓~ <i .:·' · ,;· t ·t' . ... ~- ~ft:~~~:·---~t,(~/;·. ~~}~:--i~:~t· i.?i~-~. :-; -.i-;.) :. PUBLIC NO. 5-27 House Bill No. 5-148 1 collateral foreign or banking corporations or 2 associations, insurance companies, sureties o r other private 3 4 execute a71 necessary or convenient i n the individuals, corporations, agencies o r cooperatives and 5 6 Section 3. Section 11 o f P.L. 4-49 i s amended t o add a exe se of such r. 7 a "(e) Reinvestment by the Authority pursuant t o 9 Section 24 of t h i s Act o f a l l or any portions of the 10 proceeds o f bonds, nates o r other obligations made and 11 issued pursuant t o such Section i s expressly au thor ized ." 1 2 Section 4. P.L. 4-49 i s t o 13 "Section 24. as new "Section 25. Severability." a n d new subsection ( e ) t o read a s follows: 15 16 17 18 ti, existing "'Section 24. Effective as new "Section 26. t o add , the existing Section 23. Vacation o f Executive Section 24 t o read as follows: "Section 24. Revenue Bonds i n of Section not i n l imitation *..A. I- - - ~ - 5 expressly authorized and e or i n by a l l Page 5 14 19 21 22 rci fran i nstrurrents powe Ame ndrre nt. kne.n.drre.n.i. s.evera biJJ:~." renunber Ef1ective Date." and .... ---... -.. ,-~,-~ .. , .. , ........ ,., ... , Order. 11 , ne.v danest1c It amended renunber existing Date" fol lowing ~ y1J)p .rj tv Rein ves trrent (a) fu rth2rance thereof, the Authority i to m;i.k and is~.:,.; e ho nds, notes, 6 and empo...ered other obligations furtherance of the purposes of this Act reinvesting 0:r any poi-tier. c.-" th2 pr,x:eecs of su:::h bonds, notes or (c) of this Section and ta use any or all of the proceeds, rzin.,·sst"f::nt and earnings therefro-n to provide for timely ...> .• 1 2 3 4 5 6 7 8 9 11 12 13 14 15 17 21 24 PUBLIC 5-27 House Bill 5-148 tions o r indebtedness o f any subdivision, 1 be special and limited repayment o f such bonds, notes o r other obligations i n accordance w i t h t h e i r respective and the payment o f any cost and expenses incidental t o such bonds, notes or other obligations, and to use any excess earnings o r other moneys derived therefran i n furtherance o f the purposes o f t h i s Act for one o r public purposes a t the direction o f the Authority w i t h the approval o f the Legislature by Joint Resolution, and which bonds, notes or other obligations shall be secured by such proceeds, such or such other guarantees and col la teral as my o r pledged by the Authority; t h a t , such bonds, notes o r other obligations shall n o t the t h u n i t o r agency i g a tions of Authori ty , solely revenues a n d assets or by kuthority t o provide fo r the o f or any political i s be t o t he f a i t h and credi t n o r the interests i s t o o f , 10 I! , . I l i ( ii 16 I l I; 'I 18 I I '. ! ; 19 1 l ! ! 2" '.. u '. ' rrore reinves 1:m:!nt be detenni ned constitlJte obliga or political thereof, but sha1 the determined payable pl edged the repayment th2reof. Neither tenns governrrent from the taxi ng power the Comnnrr11eal th subdivision thereof or sha11 pledged of the pr-incip:11 of, prmliums, if any, or u-woo. obl No. provided Comrro nwe al the payrrent on expressly author~zej and e:npott::>red in conn2ction with the making and issuance such bonds, notes or other obligations, Page 6 ; ~ ~ - ~ ~ .. :· ... 1 veive expressly NO. 5-27 House Bill No. 5-148 1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 2s 2 1 t i 25 a t or the time o f the issuance o f such bonds , notes or other igations, any r ight o f the Authority t o issue such bonds, notes o r other obligations exempt as t o principal and in te res t , from taxation by the United States or by any state , t e r r i tory or possession of the U n i t e d States, or any pol i t ical subdivision o f any o f t h e m . (c ) I n furtherance o f Section a n d not i n limitation thereof, proceeds o f bonds, notes or other obligations o f the Authority made and pursuant t o t h i s Section shall be reinvested by the Authority, t o the extent permitted by law, i n one or more insurance o r policies or a n n u i ty contracts or optional annui ty contracts, i ncl u d i ng w i t h o u t tation fundi ng and guaranteed contracts, issued foreign insurance such bonds, notes o r other or the paying a b i l i t y o f the insurance a t the o f t h e i r E a such pol icies , cy, i n o r e i n t h e o f t h i s Page 7 ~~s~y!~,~t~,T • ., · .. -.;:~~~-[..:'l:~~$:'.4~~~~~:.~~~:~~~-tft'".:.~-~~:•,t~~~~~~~\'~./l~""'~?t', ~·' #;~~,...;,,,, ~-;... ;-~;,IAA,t,S:~1~,··, q d,l(~{ ~~f '!i).V~,,,~~~~Jf,-rl~~,,,,:;;, !' '> ' .. :: ~::-:: --~~ - ; ~~ "~~ ';,"(<~~:.."":,~- ... ~-,;.>;, -.-( - ;. ;,1:"',., ;,~--( ' • • ~ ~-~ ~,.. =~ -< ~ ~-,t\ -•.' ,':., ' ~ ' '. :.:'·-- .. .: ,:;.'""" \,: ... ""' ~ '' , ·~ } , • ' ':, (j>::• <' •i • .,.~ .,.- ' PUBLIC lJ.W 10 18 22 ?'", i....J 24 i 25 ! ~ before obl 11 issued endowrrent 1 im i agreerrents investrrent by tny or do11e s tic corporation, c anpa ny or firm; .£!:OVided t~a!, ob 1 i ga tions claims corporations, c rn"ipani es or fi nns issuing ccntracts, or agreenents ar-e rate,j time iss~ ~ce in either of tne two highest rating categories b, r,atioria11y recc,JniZE!C rating r::er or or.e nXi 1 rn ves tr;12r, t Securities ( as defineC: Section ll(d) ), S2:urities in ,2ach such caE,e mature net later than the dcJ te on 1-i!"i ich mney so reinv:".,sted wil 1 be needed for the pu rp0ses A.ct. I i 5-27 House Bill No. 5-148 i I 1 2 3 4 5 6 7 8 12 13 15 i 17 (d) The implementation o f the Authority reinvestment revenue bonds program pursuant t o subsections ( a ) , (b) and (c) o f this Section i s in w i t h Section 10 of th is Act. not more t h a n 180 days following the in i t i a l issuance d a t e o f bonds, notes or other obligations pursuant t o th i s Section, a n d t o update as necessary, an "Authority revenue bonds program report" f o r delivery t o the legislature and the Governor. such report shall n o t a f f ec t the va l id i ty o f the issuance o f such bonds, notes or o ther obligations pursuant t o subsections ( a ) , and ( c ) o f this Section. The Authority i s requested t o prepare, within Failure t o prepare (e ) The a n d issuance of bonds, notes or other obligations by the Authority pursuant t o this Section i s expressly defined a s a public purpose and i n o f the o f this Act, i n c l u d i n g without t a t i o n t e the c o f the i n o f o f t h e Act and I ' , . by i ssuance i n a or a n o f a principal Page 8 9 10 11 I 14 16 18 19 , 20 i '. '1 21 Z3 24 25 canpl i ance reinves tn-ent hereby furtherance 1 imi ( f) { b) making ~rposes to stimula furtherance econani development Section 6(b)(4) not in linHetion therc:'.'.'Jf, the Legislature may approve joint resolution the authorization, making the by the Authority o:: bonds, notes or other cb1 igations ' + 5,,;. ,.ec~,.,.,,e {=\\ t''D' ,:-1n,.,d (c' .. : "',,+, th-is Sert,·on 0:1~·-sua,.·;: \,,0 v:.. 0 ~ ~ ;\,.:,!...: ,\Cl, , ·/ - .. \ . .I .... - st~ted aggre9ate pri nd pal arount aggregate principa'1 a":1ount not in excess PUBLIC 5-27 House Bill No. 1 2 m o u n t necessary and to earn over the term o f such bonds through the revenue bond program 3 4 moneys derived therefrom. Such approval by the 5 6 7 8 subsection ( f ) shall be deemed t o sa f i s fy the a stated aggregate moun t of excess earnings or other Legislature may be o f a single making and issue of bonds, o r of one or ser ies of such bonds from time t o time. Such approval by the Legislature pursuant t o th i s o f Section o f the Act." Sect ion 5. This Act s h a l l take effect a f t e r i t s 11 approval by the or upon i t s ng law w i t h o u t such approval. l ! 'i 11 ! ! ' ' ! ' 9 10 rrore 6(b)(4) convenient reinves trrent IJ\W NO. 5-148 re qui re1re nts Effective Date. Governor, be can i ATTEST: \ 1/4.-,Y.C-i? f , \.--.... FRANCES P. SABLAN House Clerk