An Act to provide assistance to the Government of Guam, to guarantee certain obligations of the Guam Power Authority, and for other purposes.
PL 94-395 (H.R.13679), enacted 09/03/1976

PUBLIC LAW 94-395—SEPT. 3, 1976 
90 STAT. 1199 
Public Law 94-395 
94th Congress 
An Act 
To provide assistance to the Government of Guam, to guarantee certain 
obligations of tlie Guam Power Autliority, and for otlier purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled, That section 11 of 
the Organic Act of Guam (64 Stat. 387, 48 U.S.C. 1423a) is hereby 
amended by adding at the end thereof the following language: "The 
Secretary of the Interior (hereafter in this section referred to as 
'Secretary') is authorized to guarantee for purchase by the Federal 
Financing Bank bonds or other obligations of the Guam Power 
Authority maturing on or before December 31, 1978, which shall be 
issued in order to refinance short-term notes due or existing on June 1, 
1976 and other indebtedness not evidenced by bonds or notes in an 
aggregate amount of not more than $36 million, and such bank, in 
addition to its other powers, is authorized to purchase, receive or other-
wise acquire these same. The interest rate on obligations purchased 
by the Federal Financing Bank shall be not less than a rate deter-
mined by the Secretary of the Treasury taking into consideration the 
current average market yield on outstanding marketable obligations 
of the United States of comparable maturities, adjusted to the nearest 
one-eighth of 1 per centum, plus 1 per centum per annum. The Secre-
tary, with the concurrence of the Secretary of the Treasury, may 
extend the guarantee provision of the previous sentence until Decem-
ber 31, 1980. Such guaranteed bonds or other obligations shall, while 
outstanding, include a provision for semiannual payments of interest 
only. If the Secretary determines that the Guam Power Authority 
will not meet its obligation to pay interest, the Secretary shall request 
the Secretary of the Treasury to deduct such payments from sums col-
lected and paid pursuant to Section 30 of this Act (48 U.S.C. 1421h). 
Should there be default at maturity on the bonds or other obligations 
so guaranteed, (1) the Secretary may withhold such sums as he deter-
mines may be necessary from sums collected by the Secretary of the 
Treasury pursuant to Section 30 of this Act (48 U.S.C. 1421h) until 
losses incurred by the Secretary under the guarantee plus interest at 
the rate specified in this section have been reimbursed to the Secretary 
and (2) notwithstanding any other provision of law. Acts making 
appropriations may provide for the withholding of any payments 
from the United States to the Government of Guam which may be 
Sept. 3, 1976 
[H.R. 13679] 
Guam Power 
Authority. 
Guaranteed 
bonds or other 
obligations. 
Interest rate. 
Semiannual 
interest 
payments. 
Matured bonds, 
default. 
Withholding 
from collected 
Withholding 
payments from 
United States to 
Guam. 
90 STAT. 1200 
PUBLIC LAW 94-395~SEPT. 3, 1976 
or may become due pursuant to any law and offset the amount of such 
withheld payments against any claim the United States may have 
against the Government of Guam or the Guam Power Authority pur-
"Person " 
suant to this guarantee. For the purposes of this Act, under Section 
3466 of the Revised Statutes (31 U.S.C. 191) the term 'person' 
f
V 
includes the Government of Guam and Guam Power Authority. The 
s 
Secretary may place such stipulations as he deems appropriate on the 
' 
bonds or other obligations he guarantees.". 
^
, 
.. 
Approved September 3, 1976. 
LEGISLATIVE HISTORY: 
SENATE REPORT No. 94-1155 accompanying S. 3681 (Comm. on Interior and Insular 
Affairs). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
July 1, considered and passed House. 
Aug. 24, 25, considered and passed Senate, in lieu of S. 3681.