Changes

In ''Limtiaco v. Camacho'', 127 S. Ct. 1413 (2007), the [[United States Supreme Court]] considered the issuance of bonds by [[Guam]] to cover a [[deficit]] in its [[budget]]:

In '''''Limtiaco v. Camacho''''', 127 S. Ct. 1413 (2007), the [[United States Supreme Court]] considered the issuance of bonds by [[Guam]] to cover a [[deficit]] in its [[budget]]:

:The Legislature of Guam authorized Guam's Governor to issue bonds to fund the Territory's continuing obligations. Concluding that the bonds would violate the debt-limitation provision of the Organic Act of Guam, § 11, 64 Stat. 387, as amended, 48 U.S.C. § 1423a, the attorney general 1 of Guam refused to sign contracts necessary to issue the bonds. In response, the Governor sought a declaration from the Guam Supreme Court that issuance of the bonds would not violate the Organic Act's debt limitation. The Guam Supreme Court held that § 1423a limits Guam's allowed indebtedness to 10 percent of the appraised valuation, not the assessed valuation, of taxable property in Guam.  

:The Legislature of Guam authorized Guam's Governor to issue bonds to fund the Territory's continuing obligations. Concluding that the bonds would violate the debt-limitation provision of the Organic Act of Guam, § 11, 64 Stat. 387, as amended, 48 U.S.C. § 1423a, the attorney general 1 of Guam refused to sign contracts necessary to issue the bonds. In response, the Governor sought a declaration from the Guam Supreme Court that issuance of the bonds would not violate the Organic Act's debt limitation. The Guam Supreme Court held that § 1423a limits Guam's allowed indebtedness to 10 percent of the appraised valuation, not the assessed valuation, of taxable property in Guam.