(a) American Samoa Medical Center (ASMC), on behalf of ASMC, are authorized to enter into a credit facility whereby the government will lend and ASMC will borrow an amount not t exceed $5,000,000.00 for the purpose of providing immediate financial assistance to ASMC. The Governor, or his designee, and the Board of Directors, or its designee, are authorized to negotiate the terms of the credit, including and interest rate, repayment terms and such other terms and conditions as may be required to obtain the credit facility. The Governor and the Board are further authorized to execute all instruments and documents necessary to conclude the transactions, including promissory notes which evidence indebtedness of the ASMC.
(b) Proceeds of the loan shall be expended to satisfy, or partially satisfy to the extent f the proceeds, current indebtedness of the ASMC in the following priorities:
(i) U.S. FICA and Medicare taxes;
(ii) Employee and employer contributions owing t the American Samoa Employees’ Retirement Fund;
(iii) Utility payables;
(iv) Pharmaceutical company payables;
(v) Other vendor payables incurred for essential operational services; and
(vi) ASG withholding taxes.
(c) A.S.C.A., Section 13.0109 notwithstanding, the loan shall be repaid to the government from revenues appropriated by the Legislature for ASMC on such terms as negotiated.
(d) As a condition of the loan, ASMC shall enter into a fiscal and operations reform plan with the government, acceptable to the Governor, whereby ASMC will implement procedures to increase its revenues, reduce its expenditures, achieve a balanced budget and improve operations of L.B.J. Tropical Medical Center. Plans to reduce expenditures shall specifically address reduction of personnel costs.
(e) Within 30 days f the end of each fiscal quarter, the Treasurer shall provide a report to the Governor and the Legislature detailing the status of the credit facility and all transactions related thereto which occurred during the prior fiscal quarter.History: 2003, PL 28-10.