Economic Development Fund

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  • (a) There is established in the Treasury of the Government of the Virgin Islands a fund to be known as the “Economic Development Fund” (hereinafter the “Fund”). The Governing Board of the Authority shall provide for the administration of the Fund, and no amounts therein shall be available for expenditures except as provided under this section.

  • (b) The fund shall consist of the following:

    • (1) Notwithstanding any other law, all funds currently existing in the Insurance Guaranty Fund as established under title 33, section 3061 of this Code as of the enactment date of this Act up to $30,000,000 which amount shall be substituted in the Insurance Guaranty Fund with a financial instrument of equivalent value including a standby letter of credit, surety bond, re-insurance certificate or any other such instrument as deemed appropriate by the Governor;

    • (2) Any amounts transferred as a result of the authorization that is hereby given for the Governor to seek federal approval of a one-time transfer of up to $10,000,000 from the Unemployment Insurance Trust Fund, as established under title 24, section 310, of this Code;

    • (3) Low-interest loans of up to $50,000,000 attained through the authorization that is hereby given to the governing board to secure from the United States Department of Commerce and the United States Department of Agriculture;

    • (4) The proceeds from the refinancing and refunding of the 1999 series A revenue bonds in the amount of $300,000,000 for working capital or advance interest rate swap as contemplated through the authorization that is hereby granted to the Governor;

    • (5) As much as permitted by law, Community Development Block Grant funds;

    • (6) Any money appropriated thereto, from time to time, by the Legislature; and

    • (7) gifts and contributions.

  • (c) Money in the Fund shall be leveraged and utilized for the following purposes: promoting the economic development of the Virgin Islands as provided for and is within the authority of the Economic Development Authority as provided under this Code. The Authority shall also provide a guarantee for project financing of not more than $10,000,000 to establish an airline hub on St. Croix. For the purposes of this section leveraging shall mean increasing the value of the principal amount to finance debt.

  • (d) The maximum amount of the debt to be guaranteed shall not exceed $600,000,000.

  • (e) The Fund should be rated by a nationally recognized rating entity such as; Moody's, Standard and Poor's or Fitch.

  • (f) The Authority shall make available to the Legislature and the Governor at least twice a year, a detailed description of the expenditures and money available in the Fund.


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