48 U.S.C. § 1574a — Revenue bonds or other obligations

Page 148 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1574–1 ‘‘(B) shall continue to apply to those instruments of indebtedness issued by the Government of the Virgin Islands after the date of the enactment of this Act and before December 31, 1999.’’ EFFECTIVE DATE OF 1968 AMENDMENT Pub. L. 90–496, § 15, Aug. 23, 1968, 82 Stat. 842, provided that the amendment made by section 15 is effective on the date of enactment of Pub. L. 90–496, which was ap- proved Aug. 23, 1968. CONSTRUCTION Pub. L. 106–84, § 4, Oct. 28, 1999, 113 Stat. 1296, provided that: ‘‘These amendments to the Revised Organic Act of the Virgin Islands [amending this section] are not in- tended to modify the internal revenue laws. Thus, the bonds authorized by this bill must comply with sub- section (c) of section 149 of the Internal Revenue Code of 1986 [26 U.S.C. 149(c)] (which requires the new bonds comply with the appropriate requirements of the Inter- nal Revenue Code).’’ LEVYING AND COLLECTION OF EXCISE TAXES BY LEGISLATURE OF THE VIRGIN ISLANDS Pub. L. 96–205, title IV, § 405, Mar. 12, 1980, 94 Stat. 89, as amended by Pub. L. 97–357, title III, § 302, Oct. 19, 1982, 96 Stat. 1709, provided that: ‘‘Any excise taxes lev- ied by the Legislature of the Virgin Islands may be lev- ied and collected as the Legislature of the Virgin Is- lands may direct as soon as the articles, goods, mer- chandise, and commodities subject to said tax are brought into the Virgin Islands. The officials of the Customs and Postal Services of the United States are directed to assist the appropriate officials of the United States Virgin Islands in the collection of these taxes.’’ § 1574–1. Applicability of laws referred to in sec- tion 502(a)(1) of Covenant to Establish a Commonwealth of the Northern Mariana Is- lands Effective on the date when section 502 of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America, approved by joint resolution approved on March 24, 1976 (90 Stat. 263) goes into force those laws which are referred to in section 502(a)(1) of said Covenant, except for any laws administered by the Social Security Administration, except for medicaid which is now administered by the Centers for Medicare & Medicaid Services, and except the Micronesian Claims Act of 1971 (85 Stat. 96) shall be applicable to the territories of Guam and the Virgin Islands on the same terms and conditions as such laws are applied to the Northern Mar- iana Islands. (Pub. L. 95–134, title IV, § 403, Oct. 15, 1977, 91 Stat. 1163; Pub. L. 95–135, § 1, Oct. 15, 1977, 91 Stat. 1166; Pub. L. 108–173, title IX, § 900(e)(7), Dec. 8, 2003, 117 Stat. 2374.) Editorial Notes REFERENCES IN TEXT The Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America, referred to in text, is con- tained in section 1 of Pub. L. 94–241, set out as a note under section 1801 of this title. For Jan. 9, 1978, as the date section 502 of the Covenant came into force, see Proc. No. 4534, § 2, set out as a note under section 1801 of this title. The joint resolution approved on March 24, 1976, re- ferred to in text, is Pub. L. 94–241, Mar. 24, 1976, 90 Stat. 263, which is classified generally to subchapter I (§ 1801 et seq.) of chapter 17 of this title. For complete classi- fication of this Act to the Code, see Tables. The Micronesian Claims Act of 1971, referred to in text, is Pub. L. 92–39, July 1, 1971, 85 Stat. 92, as amend- ed, which was classified generally to section 2018 et seq. of the former Appendix to Title 50, War and National Defense, and which was omitted from the Code as ter- minated Aug. 3, 1976. CODIFICATION Section is also classified to section 1421q–1 of this title. Section was formerly set out as a note under section 1681 of this title. Section was not enacted as part of the Revised Or- ganic Act of the Virgin Islands which comprises this chapter. AMENDMENTS 2003—Pub. L. 108–173 substituted ‘‘Centers for Medi- care & Medicaid Services’’ for ‘‘Health Care Financing Administration’’. 1977—Pub. L. 95–135 amended section generally. Prior to amendment, section read as follows: ‘‘Effective on October 15, 1977, those laws, except for any laws admin- istered by the Social Security Administration and ex- cept for medicaid which is now administered by the Health Care Financing Administration, which are re- ferred to in section 502(a)(1) (except for the reference to the Micronesian Claims Act of 1971 (85 Stat. 96)) of the Covenant to Establish a Commonwealth of the North- ern Mariana Islands in Political Union With the United States of America, approved by joint resolution ap- proved on March 24, 1976 (90 Stat. 263), and 502(a)(2) of said Covenant shall be applicable to the territories of Guam and the Virgin Islands on the same terms and conditions as such laws are applied to the Common- wealth of the Northern Mariana Islands.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–135 effective as of Oct. 15, 1977, see section 2 of Pub. L. 95–135, set out as a note under section 1421q–1 of this title. § 1574a. Revenue bonds or other obligations (a) Authorization for issuance; use of proceeds; legislative initiative and binding referendum vote In addition to the authority conferred by sec- tion 1574(b) of this title, the legislature of the government of the Virgin Islands is authorized to cause to be issued bonds or other obligations of such government in anticipation of revenues to be received under section 7652(b)(3) of title 26. The proceeds of such bonds or other obligations may be used for any purpose authorized by an act of the legislature. The legislature of the gov- ernment of the Virgin Islands may initiate, by majority vote of the members, a binding ref- erendum vote to approve or disapprove the amount of any such bond or other obligation and/or any purpose for which such bond or other obligation is authorized. (b) Federal guarantee The legislature of the government of the Vir- gin Islands may provide, in connection with any issue of bonds or other obligations authorized to be issued under subsection (a) the proceeds of which are to be used for public works or other capital projects, that a guarantee of such bonds or obligations by the United States should be applied for under section 1574b of this title. Page 149 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1574b (c) Limitations on issuance Except to the extent inconsistent with the provisions of this Act, the provisions of section 1574(b)(ii) of this title (other than the limitation contained in the proviso to the first sentence of subparagraph (A)) shall apply to bonds and other obligations authorized to be issued under sub- section (a). (Pub. L. 94–392, § 1, Aug. 19, 1976, 90 Stat. 1193; Pub. L. 105–83, title I, § 124(c), Nov. 14, 1997, 111 Stat. 1567; Pub. L. 106–84, § 1(b)(3), Oct. 28, 1999, 113 Stat. 1295.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (c), is Pub. L. 94–392, Aug. 19, 1976, 90 Stat. 1193, which enacted sections 1574a to 1574d of this title, amended section 1397 of this title, and enacted a provision set out as a note below. For complete classification of this Act to the Code, see Ta- bles. CODIFICATION In subsec. (a), ‘‘section 7652(b)(3) of title 26’’ sub- stituted for ‘‘section 28(b) of such Act (26 U.S.C. 7652)’’, meaning section 28(b) of the Revised Organic Act of the Virgin Islands (68 Stat. 508), which was classified to sec- tion 3350(c) of former Title 26, Internal Revenue Code, on authority of section 7852(b) of Title 26, Internal Rev- enue Code, which provided that any reference in any other law to a provision of the Internal Revenue Code of 1939 shall be deemed a reference to the corresponding provision of the Internal Revenue Code of 1986. Section was not enacted as part of the Revised Or- ganic Act of the Virgin Islands which comprises this chapter. AMENDMENTS 1999—Subsec. (d). Pub. L. 106–84 struck out subsec. (d) which read as follows: ‘‘The legislature of the Govern- ment of the Virgin Islands may cause to be issued notes in anticipation of the collection of the taxes and reve- nues for the current fiscal year. Such notes shall ma- ture and be paid within one year from the date they are issued. No extension of such notes shall be valid and no additional notes shall be issued under this section until all notes issued during a preceding year shall have been paid.’’ 1997—Subsec. (d). Pub. L. 105–83 added subsec. (d). Statutory Notes and Related Subsidiaries AUTHORIZATION OF APPROPRIATIONS Pub. L. 94–392, § 6, Aug. 19, 1976, 90 Stat. 1195, provided that: ‘‘There are hereby authorized to be appropriated such sums as may be necessary to carry out the provi- sions of this Act [enacting this section and sections 1574b to 1574d of this title and amending section 1397 of this title].’’ § 1574b. Federal guarantee for issuance of rev- enue bonds or other obligations (a) Application to Secretary of the Interior; con- tents When authorized under subsection (b) of sec- tion 1574a of this title, the government of the Virgin Islands may apply to the Secretary of the Interior (hereinafter referred to as the ‘‘Sec- retary’’) for a guarantee of any issue of bonds or other obligations authorized to be issued under subsection (a) of section 1574a of this title. Any such application shall contain such information as the Secretary may prescribe. (b) Terms and conditions of guarantee or com- mitment to guarantee; determination by Sec- retary of approval The Secretary is authorized, with the approval of the Secretary of the Treasury, to guarantee and to enter into commitments to guarantee, upon such terms and conditions as he may pre- scribe, payment of principal and interest on bonds and other obligations issued by the gov- ernment of the Virgin Islands under subsection (a) of section 1574a of this title. No guarantee or commitment to guarantee shall be made unless the Secretary determines— (1) that the proceeds of such issue will be used only for public works or other capital projects, except that $28,000,000 of the guaran- teed bonding authority will be used for water producing and power projects, including main- tenance and overhaul of electrical generating and distribution mechanisms, and $12,000,000 of the guaranteed bonding authority will be used for repair and improvements of the water dis- tribution and storage systems; (2) taking into account anticipated expendi- tures by the government of the Virgin Islands while the bonds or other obligations forming a part of such issue will be outstanding, all out- standing obligations of the government of the Virgin Islands which will mature while the bonds or other obligations forming a part of such issue will be outstanding, and such other factors as he deems pertinent, that the reve- nues expected to be received under section 7652(b)(3) of title 26 will be sufficient to pay the principal of, and interest on, the bonds or other obligations forming a part of such issue; (3) that credit is not otherwise available on reasonable terms and conditions and that there is reasonable assurance of repayment, and (4) that the maturity of any obligations to be guaranteed does not exceed thirty years or 90 per centum of the useful life of the physical assets to be financed by the obligation, which- ever is less as determined by the Secretary. (c) Administrative costs; deposit of fees The Secretary shall charge and collect fees in amounts sufficient in his judgment to cover the costs of administering this section. Fees col- lected under this subsection shall be deposited in the revolving fund created under subsection (g). (d) Conclusiveness and incontestability; pledge of full faith and credit Any guarantee made by the Secretary shall be conclusive evidence of the eligibility of the obli- gation for such guarantee, and the validity of any guarantee so made shall be incontestable, except for fraud or material misrepresentation, in the hands of the holder of the guaranteed ob- ligation. Such guarantee shall constitute a pledge of the full faith and credit of the United States for such obligation. (e) Interest on guaranteed obligations taxable The interest on any obligation guaranteed under this section shall be included in gross in- come for purposes of chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.].