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Fund offers new terms for Judicial Building loan
Because of the challenges Saipan has experienced in the aftermath of Typhoon Soudelor, the CNMI Settlement Fund is offering the CNMI government a proposal to extend the repayment terms of the Judicial Building loan.
Settlement Fund trustee attorney Joyce C. H. Tang has informed Gov. Eloy S. Inos that the Judicial Building loan matured in March 2015, and the entire principal balance of $4,503,660.86 is now due, together with accrued interest of $80,501.89 calculated through Nov. 2, 2015.
This year, Tang said, the Settlement Fund received a total of seven payments totaling $704,931.19 from the NMI government starting from March 2015.
Tang discussed the Settlement Fund’s proposal for extension of the loan’s repayment plan in her letter to Inos last Nov. 2 and in her report that was filed last week in federal court.
Tang said Inos had asked at an earlier meeting if the loan could be refinanced. She said the Settlement Fund is willing to extend the repayment terms provided that the principal amount of $4.5 million will be amortized over a 10-year period at the stated rate of interest under the note of 7.7 percent interest.
Tang said monthly payment should be $52,014.55 and that the first payment will be due on Dec. 1, 2015.
Tang said the other condition is that the CNMI government should pay $250,000 to be applied first to the outstanding accrued interest and then to the principal by no later than Dec. 1, 2015.
Tang said the other condition is that the federal court must approve the amendments to the loan.
Tang said upon reaching agreement on the terms, they will provide the amendment to the loan documents for the governor’s review.
Tang said other than the Judiciary Building loan and Northern Marianas College debt, the CNMI government is current on all of its payment obligations to the Settlement Fund.
The CNMI government was allowed to secure a loan from the NMI Retirement Fund through a Judicial Building Financing Act of 1994 in order to build the Judicial Complex in Susupe. Construction began in 1995 and was completed in May 1998. The revenues generated by the Judiciary are the primary sources of repayment of the loan.
