A BILL FOR AN ACT 

TO AMEND SECflO S 3, 4, AND 5 OF P.L. 13-17, AS AMENDED BY P.L. 13-25; AND 

FOR OTHER PURPOSES .. 

BE IT ENACTED BY THE THIRTEENTH NORTHERN MARIANAS 

COMMONWEALTH LEGISLATURE: 

Section 1. Intent and Purpose. Interim financing is needed to secw-e ~public 

debt mandated under PL 13-17, as amended. The purpose of this Act is to clarify existing 

language that, through the Commonwealth Development Authority, the Marianas Public 

Lands Authority, in fulfilling its statutory mandate, may arrange for interim financing of 

the public debt to ftmd the retirement of land compensation claims against the 

Commonwealth. 

Section 2. Repeal and Reenactment. Section 3 of PL 13-17, as amended by PL 

13-25, is repealed and reenacted to read as follows: 

Section 3. Public Debt Authorization. 

a) This Act is a Bond Authorization Act within the meaning of PL 11-3. 

The Commonwealth Development Authority (CDA) for and in the name and on 

behalf of the Commonwealth is hereby authorized, at the request and after 

consultation with the Marianas Public Lands Authority (lv1PLA), to issue in one 

or more series up to $40,000,000 in principal amount of general obligation bonds 

of the Commonwealth for the pwpose of completing the acquisition of various 

parcels of real property through funding the retirement of land compensation 

claims against the Commonwealth for land taking by eminent domain or other 

legal process. The CDA, at the request of and after consultation with the MPLA, 

is also authorized to secw-e on behalf of the Commonwealth bond proceeds 

anticipation financing for such pwposes from a financial institution in a principal 

amount up to $40,000,000. In consultation with MPLA, CDA is further 
Section 4 hereof, and on such priority and terms as CDA in consultation with 

MPLA detennines to be in the best interest of the Commonwealth. The funds 

borrowed under the interim financing shall be retired from funds generated by the 

bond issuance or from other sources, including pledged collateral, provided herein 

for payment of the bonds. 

(b) The public debt authorized herein shall be issued pursuant to and as 

"bonds" within the meaning of Public Law 11-3 ( 4 CMC § 1 0451-1 0466) and 

payable in United States currency and not in the equivalent amount of any foreign 

cun·ency. 

c) The authorization for public debt hereunder is made only for the 

pwpose of acquisition of real prope.tty through funding the retirement of land 

compensation claims against the Commonwealth, and only to a total principal 

amount of indebtedness not to exceed $40,000,000 outstanding at any time, 

inclusive of any commission or fee, and costs of issuance, reserves, credit 

enhancement or other similar expenses. 

(d) The public debt authorized herein is only authorized with a true 

interest rate not exceeding 7% per annwn simple interest on the principal amount 

remaining outstanding and unpaid and with repayment terms not exceeding 30 

years for payment in full of principal and interest 

(e) The public debt authorized herein shall be backed by the full faith and 

credit of the Commonwealth Government and shall be a debt of the 

Commonwealth. 

Section 3. Amendment. Section 4 of PL 13-17 is amended by modifYing 

existing subsection (b), by adding a new subsection (c), by revising existing subsection 

(c) to be redesignated as "(d)", and by redesignating affected subsections accordingly: 

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the retirement of land compensation claims against the Commonwealth as authorized by 

this Act. 

(c) The CDA, for and in the name and on behalf of the Commonwealth, may 

pledge as additional security for, and provide for payment of, principal and interest on the 

bonds and any interim financing from amounts in the Fund, and covenant not to amend 

subparagraph (ii) of 4 CMC 1 1403(e) as amended in Section 4 of this act in any manner 

that would impair the sectui.ty for the bonds or interim financing. 

(d) Transfer of Bond Proceeds to NIP LA. After satisfying any commission or fee, 

costs of issuance, rese1ves, credit enhancement or other similar expenses, CDA shall 

transfer the remaining balance of the bond proceeds to MPLA which shall deposit these 

funds into an account separate from its operational accounts. The funds in such account 

are hereby appropriated, without requiring further legislative appropriation, for the 

purpose of paying out land compensation claims subject to conditions necessary to 

maintain tax exemption of the bonds or any interim financing. The Commissioner of 

MPLA shall have expenditure authority over the funds in the account subject to approval 

of claims by the Board. 

Section 4. Repeal and Reenactment. Subparagraph 

(ii) of 4 CMC 1 1403(e), as enacted by PL 13-17, and subsequently amended by PL 13-25, 

is repealed and reenacted to read as follows: 

(ii) After the amount in subparagraph (i) has been transferred, and 

notwithstanding any law to the contrruy, and beginning when the Commonwealth 

initially obtains the interim or other financing authorized by this Act, the 

Department of Finance shall deposit the balance of the amount of the liquid fuel 

tax collected under 4 CMC 1 1403(a) and the entire amount of the aviation tax 

collected under 4 CMC 1 1403(b) into the Land Compensation Fund to the extent 

necessary to maintain a balance in such Fund at all times sufficient to pay all 

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the principal and interest on any financing, including any interim financing, 

authorized by this Act. Provided, that, in the event the amount in the Land 

Compensation Fund is insufficient to cover any requisite payment upon such 

financing, the Governor shall, notwithstanding any law to the contrary, pay the 

remaining balance of such payment from the general fund. The funds in the Land 

Compensation Fund shall be nonlapsing except, upon certification by the 

Secretary of Finance that all principal and interest on all financing has been paid 

in full and discharged, any funds remaining in the Land Compensation Fund shall 

lapse to the general fund. 

Section 5. Severability. If any provisions of this Act or the application of any 

such provision to any person or circumstance should be held invalid by a court of 

competent jurisdiction, the remainder of this Act or the application of its provisions to 

persons or circumstances other than those to which it is held invalid shall not be affected 

thereby. 

Section 6. Savings Clause. Ibis Act and any repealer contained herein shall not 

be construed as affecting any existing right acquired under contract or acquired under 

statutes repealed or under any rule, regulation or order adopted under the statutes. 

Repealers contained in this Act shall not affect any proceeding instituted under or 

pursuant to prior law. The enactment of the Act shall not have the effect of tenninating, 

or in any way modifYing, any liability, civil or criminal, which shall already be in 

existence on the date this Act becomes effective. 

Section 7. Article X, Section 3 Certification. Upon passage cf this bill by the 

Legislature, by a vote of at least two-thirds of the members in each house, the Speaker of 

the House of Representatives and the President shall certify and the House Clerk and the 

Senate Legislative Secretary shall attest to the passage of this bill by such two-thirds 

vote, in accordance with Article X, Section 3 of the Commonwealth Constitution. Such 

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Government with respect to this bond issuance. 

Section 8. Effective Date. This Act shall take effect upon its approval by the 

Governor, or it becoming law without such approval. 

Passed by the House of Representatives and by the Senate with the affirmative vote of 

two-thirds of the members in each house. 

CERTIFIED BY: 

lSI 

_________ _ 

HEINZ S. HOFSCHNEIDER 

SPEAKER OF THE HOUSE 

lSI _________ _ 

PAULA.MANGLON 

PRESIDENT OF THE SENATE 

ATTESTED TO BY: 

lSI _________ _ 

EVELYN C. FLEMING 

HOUSE CLERK 

lSI 

_________ _ 

THOMAS P. VILLAGOMEZ 

SENATE L EGISLATIVE SECRETARY 

Approved this 13th day of December, 2002 

lSI ___________ _ 

JUAN N. BABAUTA 

GoVERNOR 

COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS 

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