(a) Notwithstanding any other provisions of law, the Board of Trustees of the Employees Retirement System of the Government of the United States Virgin Islands, upon the request of the Governor of the Virgin Islands pursuant to the provisions of section 191h of this title, is authorized to loan, out of the reserves of the said System, exclusive of reserves for cash requirements for current operations, a sum or sums which shall not at any one time exceed $2,000,000 for the purpose of financing moderate income housing projects within the meaning and scope of this subchapter. The loan may be made of the whole amount authorized, or in parts thereof as requested by the Governor. The said Board, upon the request of the Governor, is further authorized to convert reserves of the System currently invested in United States Treasury bonds into cash to the required amount.
(b) The loan authorized hereunder shall be made upon appropriate evidence of indebtedness given by the Executive Director of the Virgin Islands Housing Finance Authority to the Employees Retirement System, secured, to the amount outstanding on such loan at any time, by a first priority mortgage or mortgages upon the real property of the Government of the United States Virgin Islands utilized or held for purposes of housing under the provisions of this subchapter, and chapter 2 of this title, including all housing constructed thereon pursuant to the said provisions of law.
(c) The principal amount of the loan, together with interest thereon at the rate of 5 percent per annum, shall be repaid to the Employees Retirement System within a period of ten years, in ten equal installments; Provided, That prepayments may be made on all or any part of the balance of the loan at any time on the authorization of the Governor; And, provided further, That partial releases of the mortgaged property will be permitted upon the request of the Governor setting forth the details and circumstances of such requested releases, and upon receipt of payment for property released and in consideration of the relative amount by which the total amount of the loan has been reduced, the Employees Retirement System shall deliver an appropriate release therefor.