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11/17/2025 - A bill that would conditionally authorize the Marianas Public Land Trust to open a margin account solely to facilitate the $29-million loan approved under Public Law 24-13 is now on its way to Gov. David M. Apatang.
This follows the Senate’s passage of House Bill 24-68, HD1, during its Nov. 14 session at the Tinian Public Library in San Jose, Tinian.
Voting in favor were Senate President Karl R. King-Nabors and Sens. Jude U. Hofschneider, Donald M. Manglona, Paul A. Manglona, Francisco Q. Cruz, and Ronnie M. Calvo. Sen. Manny T. Castro did not register a vote, while Senate vice president Sen. Corina L. Magofna and Sen. Celina R. Babauta were absent.
Regarding the $1 million previously intended for Nutrition Assistance Program recipients, Hofschneider told Marianas Press that the matter was referred to the Senate Fiscal Affairs Committee and will be taken up at its next meeting with the Department of Finance.
King-Nabors also clarified that the bill enabling the $29-million MPLT loan passed without amendments.
“The food stamps are currently being given out, which prompted the Senate to hold action on that,” King-Nabors said, referring to the separate $1-million loan for food stamp recipients.
Earlier on Nov. 14, Apatang announced that full November 2025 food stamp benefits would be available to all participating households on Saipan, Tinian, Rota, and the Northern Islands as early as Nov. 15 and no later than Nov. 17.
Introduced in the House on Oct. 24, House Bill 24-68 would allow MPLT to open a margin account with a licensed U.S. broker-dealer. The measure grants the trust narrow, temporary authority to borrow against its assets to finance the CNMI government’s $29-million Settlement Fund loan under PL 24-13, while ensuring fiduciary safeguards and legislative oversight.
Under the bill, MPLT may establish a margin account solely for facilitating the $29-million loan—not for any other investment or trading purpose. The legislation stresses that MPLT’s constitutional fiduciary duties of prudence, loyalty, and care remain fully intact.
Trustees would only be allowed to pledge investment-grade securities as collateral, and only up to the cash value equivalent of $29 million. The bill also notes that such borrowing carries inherent risk and does not automatically qualify as a “prudent” investment.
The measure further imposes strict reporting requirements. MPLT must submit a report to the governor and Legislature within 30 days of opening any margin account, detailing the collateral pledged, borrowing terms, and asset-protection safeguards. Quarterly updates would then be required until the account is closed.
Signed into law last Sept. 23, PL 24-13 authorizes the CNMI government to borrow $29 million from MPLT to meet annual retiree obligations.
Report by Mark Rabago
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