THE Marianas Public Land Trust has asked the House of Representatives to include in House Bill 24-50 a provision allowing flexibility to collateralize securities.
Authored by Rep. John Paul Sablan, H.B. 24-50 proposes to authorize the CNMI government to borrow $29 million from MPLT. The bill also seeks to authorize MPLT to withhold the public land net income annually distributable to the general fund as loan payment.
In her letter to Speaker Edmund S. Villagomez, acting MPLT Chair Rita A. Sablan said the trustees are requesting that the bill include a provision giving MPLT discretion to enter into margin transactions with a brokerage firm to collateralize securities.
Sablan explained that this flexibility is needed to secure financial instruments deemed to be in the best interest of MPLT. She said the arrangement would mitigate the need to liquidate assets and help preserve the fund’s corpus.
She also stated that margin authorization would support continued investment while sustaining potential income and capital gains.
H.B. 24-50 was on the bill calendar during Friday’s House session. However, according to the speaker, acting on it requires a two-thirds vote (14 House members), and only 12 members were present. House Floor Leader Marissa Flores, Reps. Roy Ada, Julie Marie Ogo, Thomas John Manglona, Malcolm Omar, Joseph Flores, Elias Rangamar, and Raymond U. Palacios were excused.
The speaker said H.B. 24-50 will be taken up in the next session.
In addition, Rep. Sablan said MPLT has also requested a meeting to discuss the trustees’ request to include the new language allowing flexibility to collateralize securities.
