By Gemma Q. Casas
Variety News Staff

NORTHERN Marianas College’s proposal to borrow $250,000 from a commercial bank to finance renovation projects has gotten the approval of the House of Representatives and now awaits the Senate’s nod.
The Senate, however, did not act on House Bill 15-222 during its session on March 8.
The measure was authored by House Minority Leader Arnold I. Palacios, R-Saipan, and 10 other lawmakers,
The loan will be repaid through the proceeds of tuition collections and not through the general fund.
“NMC has…identified from internal revenue sources its own cash deposits to secure the loan,” the bill stated. “NMC has further identified its own revenue sources to repay the loan so it will not require legislative appropriation from the general fund. The Legislature concludes therefore that the contemplated loan is in the public interest and should be approved.”
As an autonomous agency, NMC can secure loans provided it does not oblige the central government to pay the debt.
“This authorization specifies that repayment of the loan shall be made from the college’s revenue sources and not from funds appropriated by the Legislature under the Planning and Budgeting Act,” the bill stated.