€ C 38 Guam Power Authority fail to pay in full any installment of interest or principal when due on the bondsor other obliga- tions guaranteed under this section, the Secretary of the Treasury, upon notice from the Secretary, shall deduct and ay to the Federal Financing Bank.or the Secretary, according to their respective interests, such unpaid amounts from sumscollected and payable pursuant to section 30 of this Act (48 U.S.C. 1421h). Notwithstanding any other provisions of law, Acts making appropriations mayprovide for the with- holding of any payments from the United States to the Gov- ernment of Guamwhich may be or may become duc pursuant to any law andoffset the amount of such withheld payments against any claim the United States may have against the Government of Guamor the Guam Power Authority pursuant to this guarantee. For the purposes of this Act, under section 3166 of the Revised Statutes (31 U.S.C. 191) the term “person”includes the Government of Guam and Guain Power Authority. The Secretary may place such stipulations as he deems appropriate on the bonds or other obligations he guarantees. _ SECTION 401 Section 401 would extend the guaranteed borrowing authority ' granted to the Virgin Islands under P.L. 94-392 from the October 1, 1979 deadline to October 1, 1989. The purpose of P.L. 94-3892 was to provide construction funds for econoinic stimulation in 1976 and for’ urgently needed public facilitics. The Government of the Virgin Is‘lands has not, however, used much of this guaranteed borrowing authority granted the Virgin Islands under the above-cited Public Law, only $22,000,000 had been drawn down by June 1, 1979. An additional $10,000,000 is available to be drawn down for projects approved by this Department. Of the $22,000,000 in cash transferred to the Virgin Islands, only $5,000,000 has been obligated, leaving 517,000,000 unused, Only $3,000,000 has been actually paid out for construction. The Virgin Islands is paying interest and principal to the Federal) Finane- ing Bank on the $22,000,000 but also receiving interest on its deposits. The Administration recommends a three year extension, until 1982, and we further recommendthat all funds borrowed, but not obligated by that time, be returned to the lending institution from which they were borrowed. Such a plan would encourage the early obligation of funds with the benefit of meeting some of the urged capital improve- ment needs of the territory. SECTION 403 Section 403 would transfer to the Virgin Islands property that was acquired from Denmark by the United States and that was not re- served or retained by the United States in accordance with provisions In addition, a Committee amendment to the original Administration proposals includes parcels of land on St. Croix purchased by the Government of the Virgin Islands from the General Services Administration (GSA), subject to a mortgage. It is our understanding that Poe ae of P.L. 93-435.