YSC, Title 20.  Planning & Economic Development
Chapter 20.  Yap
Investment Trust of 1994

2001.   Title.
2002.   Purpose.
2003.   Definitions.
2004.   Yap Investment Trust.
2005.   Exempt from Taxation.
2006.   Immunity.
2007.   No financial interest by members.
2008.   Trust has powers to borrow.
2009.   Bonds of Trust are declared authorized investments.
2010.   State may assist Trust in carrying out its functions.
2011.   Composition of the Board.
2012.   Meetings of the Board.
2013.   Organization of the Board.
2014.   Appointment of Manager; duties.
2015.   Duties of Treasurer and Attorney.
2016.   Contract letting by the Board.
2017.   Accounting and reporting; establishment of fund.
2018.   Trust exempt from execution and bond requirements.
2019.   Trust may invest surplus funds.
2020.   Employee rights.
2021.   Penalties.
2022.   Severability.

     2001.  Title.
     This chapter shall be known and may be cited as the "Yap Investment Trust of 1994".

Source:  YSL 3-84 1, modified.

     2002.  Purpose.
     The purpose of this chapter is to promote and support economic development in the State of Yap.

Source:  YSL 3-84 2, modified.

     2003.  Definitions.
     As used in this chapter, unless the context clearly indicates otherwise, the following definitions shall apply:

            (a)  "Trust" shall mean the Yap Investment Trust.

     (b)  "Board" shall mean the Board of the Yap Investment Trust created pursuant to this chapter.
     (c)  "State" means the State of Yap.

Source:  YSL 3-84 3, modified.

     2004.  Yap Investment Trust.
     A Yap Investment Trust is hereby created.  The Trust's functions shall be governmental and public in nature and it shall have the following powers and duties, in addition to the powers and duties elsewhere imposed:

     (a)  The Trust is empowered to identify, promote, and support new development projects and expand existing areas of development for the purpose of increasing the economic productivity of the State;

     (b)  The Trust shall serve as a conduit for public funds for start-up development projects, including joint ventures and related activities which are not suitable for investment by the private sector;

     (c)  The Trust shall establish, subsidize, advise on, assist or promote, or participate in the establishment or promotion of, any enterprise, and manage or participate in the management, supervision, conduct or control of the business, or affairs of, any enterprise;

     (d)  The Trust shall expend funds for the study or implementation of projects determined by the Board to be of social or economic benefit to the inhabitants of the State;

     (e)  The Trust shall provide advisory extension services for the benefit of any enterprise;

     (f)  The Trust shall make or guarantee loans to assist the acquisition, construction, development, administration or extension of any enterprise;

     (g)  The Trust shall act as trustee for Deed of Trust guarantees as provided for under Yap State Deed of Trust Act;

     (h)  The Trust shall acquire property, or any interest in, or related to, property, and own, hold, improve or develop, conserve or rehabilitate any property, or prepare any property for development, conservation or rehabilitation;

     (i)  The Trust shall form, or assist or participate in forming companies, corporations and joint ventures for the purpose of carrying on business enterprises;

     (j)  The Trust shall borrow money and accept advances, contributions and other assistance in accordance with this chapter;

     (k)  The Trust shall make contracts and other instruments that the Board considers necessary or convenient for the exercise and performance of its powers and functions;

     (l)  The Trust may insure, or provide for the insurance of, any property, project or operation against all or any risks with an insurer approved by the Board;

     (m)  The Trust shall obtain from any governmental or other authority any license, concession, right, power or privilege that may be useful for the purposes of the Authority;

     (n)  The Trust may appoint agents or attorneys, whether in the State or elsewhere;

     (o)  The Trust shall cooperate with other persons and authorities with regard to any of the above-mentioned matters;

     (p)  The Trust may issue necessary rules and regulations pursuant to the State Administrative Procedure Act, Title 10 of the Yap State Code, concerning its operations;

     (q)  The Trust shall have free use of State government pouch mails; and

     (r)  The Trust shall file an annual report on its operations with the Governor and the Speaker of the Legislature.

Source:  YSL 3-84 4, modified.

Cross-reference:  The statutory provisions of the State Administrative Procedure Act are found in chapter 1 of Title 10 of this Code.

2005.  Exempt from Taxation.

     (a)  As an instrumentality of the State Government, the Trust and all property acquired by or for it or used by it, and all revenues and income therefrom, are exempt from taxation and business regulation by the State or by any political subdivision or public corporation thereof.

     (b)  Subsection (a) of this section does not apply to any business entity referred to in section 4(c) or 4(i) of this chapter.

Source:  YSL 3-84 5, modified.

Cross-reference:  The statutory provisions on Taxation and Finance are found in Title 13 of this Code.  The statutory provisions on Business and Professions are found in Title 22 of this Code.  The statutory provisions on Corporations, Partnerships and Associations are found in Title 23 of this Code.

2006.  Immunity.
      All the provisions of chapter 1 of Title 31 of the Yap State Code shall apply to the Trust.

Source:  YSL 3-84 6, modified.

Cross-reference:  Chapter 1 of Title 31 of this Code is on Government Liability.

2007.  No financial interest by members.
      No director, officer, or employee of the Trust, either for himself or as agent for anyone else, shall benefit by reason of any sale, purchase, contract or transaction entered into by the Trust except as otherwise provided by this chapter.  Any person who shall have any direct financial interest in any such sale, purchase, contract or transaction while serving as a director, officer, or employee of the Trust shall be guilty of a misdemeanor.  Immediately upon conviction of a violation thereof, said person shall forfeit his office or position.  Upon the filing of a complaint of such misdemeanor, the Board in its judgment may suspend the services of the charged person pending final determination thereof.  Upon conviction thereof, he shall be punished by a fine not to exceed $2,000.00, or by imprisonment not to exceed one year, or both.

Source:  YSL 3-84 7, modified.

2008.  Trust has powers to borrow.

     (a)  The Trust may issue bonds, and other evidences of indebtedness, subject to the approval of the Governor, and may hold or sell any securities or obligations upon such terms as it may fix, and may borrow on the security of any real or personal property owned by it, or on the security of some or all revenues to be derived therefrom, and may use the proceeds of such loans for the purposes of this chapter.

     (b)  All bonds issued hereunder and their transfer and the income therefrom, including deposits made on the sale thereof, shall, at all times, be free from taxation by the State or any of its political subdivisions.

Source:  YSL 3-84 8, modified.

     2009.  Bonds of Trust are declared authorized investments.
     All bonds issued under this chapter shall be and are hereby declared to be legal and authorized investments for banks, saving banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees and guardians, and for any sinking funds of all political corporations, agencies, and other subdivisions of the State.  Such bonds shall be eligible to secure the deposit of any and all public funds of the State, political corporations, agencies, and other subdivisions of the State, and such bonds shall be lawful and sufficient security for said deposits at their face value when accompanied by all unmatured coupons appurtenant thereto.

Source:  YSL 3-84 9, modified.

     2010.  State may assist Trust in carrying out its functions.
     For the purpose of aiding in the planning, undertaking or carrying out of the provisions of this chapter and of the projects contemplated herein, and subsequent operation of the Trust, if the Governor determines that such project will benefit and further the public purposes of the State, the State or any agency of the State may:

     (a)  Dedicate, sell, convey, or lease any of its interest in any real or personal properties, rights, or privileges that it may have, to the Trust;

     (b)  Incur expenses on behalf of the Trust subject to reimbursement under such terms and conditions as may be agreed upon with the Trust;

     (c)  Do any and all things necessary to aid or cooperate in the planning or carrying out of the duties, powers and obligations of the Trust;

     (d)  Lend or advance, grant or contribute funds to the Trust, and provide for or waive the repayment of any such funds loaned or advanced;

     (e)  Contract with or furnish services to the Trust upon the terms and conditions as may be agreed upon; and

     (f)  Enter into any agreements which may extend over any period of time.

Source:  YSL 3-84 10, modified.

2011.  Composition of the Board.

     (a)  All powers vested in the Trust shall be exercised by the Board, which shall consist of eight members, called Directors.  The Directors shall be the Director of the Department of Resources and Development; the Director of Office of Administrative Services; one representative appointed by the Council of Pilung; one representative appointed by the Council of Tamol; two representatives from the public sector appointed by the Governor; and two representatives from the private sector appointed by the Governor.

     (b)  Appointments by the Governor shall have the advice and consent of the Legislature.  Appointees shall hold membership on the Board for a period of two years, subject to reappointment and until their successors have been appointed and confirmed.

     (c)  Vacancies occurring in offices of appointed directors shall be filled by the Governor for the unexpired term of the director whose vacancy is being filled.

Source:  YSL 3-84 11, modified.

2012.  Meetings of the Board.
      Within 30 days after the nomination of the initial Board, and annually thereafter, the Board shall hold a meeting for the purpose of electing its officers for the ensuing year.  The Board shall meet at least every three months and shall hold public meetings as it may deem necessary for the transaction of its general business.

Source:  YSL 3-84 12, modified.

2013.  Organization of the Board.

     (a)  The Board shall organize by electing one of its members as Chairman and another as Vice-Chairman.  The Director of the Department of Resources and Development shall designate a member of his staff to be a secretary to keep the minutes and records of the Board.  The Director of the Office of Administrative Services shall designate a member of his staff to be Treasurer.  Any five members of the Board shall constitute a quorum and a concurrence of five members shall be necessary for any official action  taken  by the Board, unless otherwise provided herein.

     (b)  No vacancy in the membership of the Board shall impair the right of a quorum to exercise all of the rights and perform all of the duties of the Board.

     (c)  The directors of the Trust shall be entitled to reimbursement for actual expenses incurred in the performance of their official duties, upon approval of such expenses by the Board.

Source:  YSL 3-84 15, modified.

2014.  Appointment of Manager; duties.

     (a)  The Board may appoint a manager as its chief executive officer to serve at its pleasure with a rate of compensation to be fixed by the Board.

     (b)  Such manager shall have the duties and powers identified by the Board.

Source:  YSL 3-84 14, modified.

2015.  Duties of Treasurer and Attorney.

     (a)  The Treasurer shall have custody of all monies of the Trust and shall pay out such money only in accordance with the direction of the Board or as otherwise provided by this chapter.  The Board shall appoint any designated agent as its trustee for payment of bonds issued by it and for related purposes as the Board may provide.

     (b)  An attorney may be appointed by the Board to serve at its pleasure and shall advise the Board and the manager in all legal matters in which the Trust is interested.  The Trust may use the services of the attorneys for the State to serve as attorneys for the Trust, or it may appoint such attorney or attorneys as it may deem necessary and provide for payment of legal services rendered.

     (c)  All official documents, contracts, bonds and other instruments in writing shall be approved as to form and legal sufficiency by the attorneys for the Trust and by the State Attorney General.  Such approval may be conclusively evidenced by the signature thereon of said attorneys.

Source:  YSL 3-84 15, modified.

2016.  Contract letting by the Board.

     (a)  Except as otherwise provided herein, the State Contracts Act, Title 9 of the Yap State Code, shall apply to operation of the Trust.

     (b)  The provisions of this section shall not apply to the procurement of professional, advisory, or technical services.

     (c)  No Director shall have any financial interest, direct or indirect, in any contract awarded by the Board.  This subsection shall not apply to contracts awarded to a corporation in which such director owns less than five percent (5%) of the entire capital stock.  The Board shall establish procedures for the timely verification of this restriction by its attorney.

Source:  YSL 3-84 16, modified.

2017.  Accounting and reporting; establishment of fund.

     (a)  The Board shall insure that financial records are maintained in accordance with generally accepted accounting principles.

     (b)  The Board may employ a firm of independent certified public accountants who shall examine and report to the Board, at least annually, upon the status of the financial records and accounts maintained by the Trust. Copies of any such reports shall be furnished to the Governor and the Legislature.

     (c)  The Board shall report to the Governor and the Legislature of the affairs of the Trust.  It shall present an annual report within 60 days after the end of each fiscal year and, if requested by the Governor or the Legislature, shall present special reports within 30 days after the end of each intervening quarter.

     (d)  All funds and accounting for the Trust will be as an enterprise fund.

     (e)  All monies received by the Trust from whatever source derived shall be deposited in said fund, or in such funds as may be established pursuant to this chapter, in eligible banks as defined in this chapter.

     (f)  All expenditures, except as otherwise provided by law, shall be made from said fund.

     (g)  Audits of the Trust. s financial funds and reports are hereby authorized to be  conducted by Yap State Public Auditor.

Source:  YSL 3-84 17, modified.

Cross-reference:  The statutory provisions of the Public Auditor Act are found in chapter 7 of Title 13 of this Code.

     2018.  Trust exempt from execution and bond requirements.
     No execution shall be issued or levied by virtue of any judgment that may be recovered against the Trust, but the Board may provide for the payment of judgments from future revenues of the Trust after the final recovery of any judgment or by the payment out of any funds on hand and uncommitted.  Land, improvements, monies, or debts due the Trust, personal  and  real property, and assets of every description, belonging to the same, shall be exempted from execution and sale, and from involuntary liens.  No writ of garnishment or attachment shall issue against the Trust or the directors thereof, or its officers or employees, to subject or cause any debts due, or which may hereafter become due from the Trust, to be paid to any person or corporation, or any claim or demand upon any funds in the hands of the Trust or any of its officers, nor shall the Trust, or the Board or any of its officers or agents be required to answer any writ of garnishment.  The Trust shall not be required to give any bond as security for cost, supersedeas, or any security in any suit or action brought by or against it, or in proceedings to which it may be a party in any court in the State, and the Trust shall have the remedies of appeal and writ or error to all courts without bond, supersedeas, or security of any kind.  No builder's, materialman's, contractor's, laborer's or mechanic's lien of any kind or character shall ever attach to or become a lien upon any property, real or personal, belonging to the Trust.  No assignment of wages shall be binding upon or be recognized by the Board.

Source:  YSL 3-84 18, modified.

2019.  Trust may invest surplus funds.
      Money in any funds of the Trust or any fund established by the Board in connection with the authorization of its bonds, or other evidences of indebtedness, including, but not limited to, proceeds from the sale of bonds, which is not needed to satisfy its denominated purpose for any period of time, may be invested or reinvested from time to time in direct obligation of, or in obligations, the principal and interest of which are guaranteed by the Federated States of Micronesia, the United States of America, or invested in direct obligations of or in participation certificates guaranteed by the United States Federal Intermediate Credit Banks, Federal National Mortgage Association, Federal Home Loan Banks, banks for cooperatives, and the certificates of deposit of any bank or trust company, the deposits of which are secured by a pledge of any of the kind herein above specified. The type and maturity of investments made hereunder shall be determined by the Board which, in the case of funds established in connection with the authorization of bonds, shall provide appropriate recitals with regard thereto in the resolutions relating to the issuance of such bonds.  Income and profits on  such  investments  shall be applied as provided in any such resolution, and, at such provision, shall be applied to the uses herein above specified for bond proceeds.

Source:  YSL 3-84 19, modified.

     2020.  Employee rights.

     (a)  All employees of the Trust shall be exempt from the provisions of the State Public Service System Act, Title 8 of the Yap State Code.

     (b)  The Board shall establish rules and regulations pursuant to the State Administrative Procedure Act governing the selection, promotion, performance evaluation, demotion, suspension, dismissal, and other disciplinary rules for employees of the Trust.

Source:  YSL 3-84 20, modified.

Cross-reference:  The State Administrative Procedure Act is found in Chapter 1 of Title 10 of this Code.

2021.  Penalties.
      Any person who violates any provisions of this chapter, or any valid rule or regulation promulgated under this chapter, concerning the operation of the Trust, unless otherwise provided herein, is punishable by a fine not to exceed $1,000.00, or by imprisonment not to exceed six months, or both, upon conviction by a court of competent jurisdiction of the person or persons charged.

Source:  YSL 3-84 21, modified.

2022.  Severability.
       If any provision of this chapter or any rule, regulation, or order promulgated hereunder, or the application of any such provision, rule, regulation, or order to any person or circumstances shall be held invalid, the remainder of this chapter, or any rules, regulations, or orders promulgated pursuant thereto, or the application of such provisions, rules, regulations, or orders to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.

Source:  YSL 3-84 22, modified.