Senators in American Samoa have rejected the governor's bill to borrow eight million US dollars from the Retirement Fund for the LBJ Hospital.
The decision follows the approval of a final reading of their own bill to help the hospital.
The senators' bill which passed on Thursday refinances a 20 million dollar loan the Government made from the Retirement Fund in 2007 and sets out to borrow another two million from the fund for the hospital.
The Chairman of the Retirement Fund Board, Aleki Sene, says it supports the refinancing bill but not the eight-million-dollar loan request because it will break a law which caps the amount it can loan to the Government.
The House is expected to vote on a second reading of the bill and have it passed on Friday, the last day of the current Fono session.