Guam § 1216 - Refunding of Bonds.

§ 1216. Refunding of Bonds.

(a) The Board may authorize the issuance of refunding bonds for the purpose of refunding any or a

portion of bonds then outstanding and issued under this Article, whether or not such outstanding bonds

have matured or are then subject to redemption. The Board may provide for the issuance of a single issue

of bonds for the combined purposes of (1) financing the cost of improvement or expansion of the airport;

and (2) refunding bonds which shall therefore have been issued by the Authority and shall then be

outstanding, whether or not such outstanding bonds have matured or are then subject to redemption.

Nothing in this Section shall require or be deemed to require the Authority to elect to redeem or prepay

bonds being refunded, or to redeem or repay bonds being refunded which were issued in the form

customarily known as term bonds in accordance with any sinking fund installment schedule specified in

the bond resolution authorizing the issuance thereof, or, in the event the Authority elects to redeem or

prepay any such bonds, to redeem or prepay as of any particular date or dates. The issuance of such bonds,

the maturities and other details thereof, the rights and remedies of the holders thereof, and powers,

privileges, duties and obligations of the Authority with respect to the bonds shall be governed by the

provisions of this Article insofar as those provisions may be applicable.

(b) I Liheslaturan Guåhan, pursuant to § 1208(a) of this Article and 12 GCA § 50103(k) hereby

approves the terms and conditions of the issuance of general revenue bonds by the Authority for the purpose

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of refunding all or a portion of the Authority’s outstanding General Revenue Bonds, 2013 Series C (herein

the “2013 C Bonds”) in accordance with the following requirements, limitations, terms and conditions:

(1) All obligation of the Authority to pay debt service on, and the redemption price of, the 2013

C Bonds refunded shall be discharged concurrently with the issuance of the refunding bonds.

Thereafter, such 2013 C Bonds shall be payable solely from and secured solely by an escrow

established for such purpose in accordance with the Authority’s existing bond indenture.

(2) Such bonds shall be issued and sold in compliance with the provisions of Article 2 of Chapter

1, Title 12, Guam Code Annotated, including approval of the bond resolution by the Board of Directors

of the Authority and by I Maga’hågan/Maga’låhen Guåhan as provided therein.

(3) The sale of the bonds shall be approved by the Board of Directors of GEDA as provided by

Chapter 50 of Title 12, Guam Code Annotated.

(4) The debt service savings resulting from the issuance of the refunding bonds shall be not less

than an amount equal to two percent (2%) of the principal amount of the 2013 C Bonds refunded.

“Debt service savings” is defined for this purpose to be the amount by which the present value of debt

service on the 2013 C Bonds exceeds the present value of debt service on the refunding bonds, using

the yield on the refunding bonds as the discount rate for purposes of calculating present value.

(5) Such refunding bonds shall have a principal amount or principal amounts sufficient to provide

funds for the payment of all or a portion of the 2013 C Bonds refunded, and in addition, for the payment

of all expenses incident to the calling, retiring, or paying of such 2013 C Bonds and the issuance of

such refunding bonds, including:

(A) the difference in amount between the par value of the refunding bonds and any amount

less than par for which the refunding bonds are sold;

(B) any amount necessary to be made available for the payment of interest upon such

refunding bonds from the date of sale thereof to the date of payment of the 2013 C Bonds or to

the date upon which the 2013 C Bonds will be paid pursuant to the call thereof or agreement with

the holders thereof;

(C) the premium, if any, necessary to be paid in order to call or retire the 2013 C Bonds and

the interest accruing thereon to the date of the call or retirement; and

(D) any additional amount needed to provide for a deposit to the debt service reserve in

connection with the issuance of the refunding bonds.

(c) Reporting Requirements.

(1) The Authority shall submit a Notice of Intent to issue and sell such bonds as authorized in this

Section to I Liheslaturan Guåhan no less than ten (10) working days before the consideration of the

bond resolution by the Board of Directors of the Authority. The notice shall include a determination

by the Authority on how the savings, which will be derived upon the issuance of the refunding bonds,

will be used and expended.

(2) GEDA shall submit a report to I Liheslatura no less than five (5) working days after the

issuance and sale of such bonds, which shall include:

(A) the debt service savings resulting from the issuance of the refunding bonds;

(B) the principal amounts of the refunding bonds;

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(C) the expenses incident to the calling, retiring, or paying of such prior bonds as enumerated

in Subsection (b)(5)(A)-(D) of this Section;

(D) a determination by the Authority on how the savings, which will be derived upon the

issuance of the refunding bonds, will be used and expended; and

(E) an analysis of the use of debt savings to fund additional projects as it relates to the

Authority’s total debt outstanding. The analysis shall include the impact the projects will have on

the Authority’s financial health.

(d) I Liheslaturan Guåhan, pursuant to § 1208(a) of this Article and 12 GCA § 50103(k), hereby

approves the terms and conditions of the issuance of one or more series of general revenue bonds by the

Authority for the purpose of refunding all or a portion of the Authority’s outstanding General Revenue

Bonds, 2013 Series A, General Revenue Bonds, 2013 Series B, General Revenue Bonds, 2013 Series C,

General Revenue Bonds, 2019 Series A, and/or General Revenue Bonds, 2019 Series B (Taxable),

(hereinafter collectively, “Prior Bonds”), in accordance with the requirements, limitations, terms and

conditions:

(1) All obligations of the Authority to pay debt service on, and the redemption price of, the Prior

Bonds refunded shall be discharged concurrently with the issuance of the refunding bonds. Thereafter,

such Prior Bonds shall be payable solely from and secured solely by an escrow established for such

purpose in accordance with the Authority’s existing bond indenture or otherwise shall be redeemed on

the closing date of the refunding bonds.

(2) Such bonds shall be issued and sold in compliance with the provisions of Article 2 of Chapter

1, Title 12, Guam Code Annotated, including approval of the bond resolution by the Board of Directors

of the Authority and by I Maga’hågan/Maga’låhen Guåhan as provided therein.

(3) The sale of the bonds shall be approved by the Board of Directors of GEDA as provided by

Chapter 50 of Title 12, Guam Code Annotated.

(4) The debt service savings resulting from the issuance of the refunding bonds shall be not less

than an amount equal to two percent (2%) of the principal amount of the Prior Bonds refunded. “Debt

service savings” is defined for this purpose to be the amount by which the present value of debt service

on the Prior Bonds exceeds the present value of debt service on the refunding bonds, using the yield

on the refunding bonds as the discount rate for purposes of calculating present value.

(5) Such refunding bonds shall have a principal amount or principal amounts sufficient to provide

funds for the payment of all or a portion of the Prior Bonds refunded, and in addition, for the payment

of all expenses incident to the calling, retiring or paying of such Prior Bonds and the issuance of such

refunding bonds, including:

(A) the difference in amount between the par value of the refunding bonds and any amount

less than par for which the refunding bonds are sold;

(B) any amount necessary to be made available for the payment of interest upon such

refunding bonds from the date of sale thereof to the date of payment of the Prior Bonds or to the

date upon which the Prior Bonds will be paid pursuant to the call thereof or agreement with the

holders thereof;

(C) the premium, if any, necessary to be paid in order to call or retire the Prior Bonds and

the interest accruing thereon to the date of the call or retirement; and

(D) any additional amount needed to provide for a deposit to the debt service reserve in

connection with the issuance of the refunding bonds.

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(6) Such refunding bonds may be issued on a federally taxable or tax-exempt basis.

(e) I Liheslaturan Guåhan, pursuant to § 1208(a) and § 50103(k) of Title 12, Guam Code Annotated,

hereby approves the terms and conditions of the issuance of one or more series of general revenue bonds

by the Authority for the purpose of refunding all or a portion of the bonds authorized by Subsection (d)

hereof, in accordance with the following requirements, limitations, terms and conditions:

(1) All obligations of the Authority to pay debt service on, and the redemption price of, such

bonds refunded shall be discharged concurrently with the issuance of the refunding bonds. Thereafter,

such bonds shall be payable solely from and secured solely by an escrow established for such purpose

in accordance with the Authority’s existing bond indenture or otherwise shall be redeemed on the

closing date of the refunding bonds.

(2) Such bonds shall be issued and sold in compliance with the provisions of Article 2 of Chapter

1, Title 12, Guam Code Annotated, including approval of the bond resolution by the Board of Directors

of the Authority and by I Maga’hågan/Maga’låhen Guåhan as provided therein.

(3) The sale of the bonds shall be approved by the Board of Directors of GEDA as provided by

Chapter 50 of Title 12, Guam Code Annotated.

(4) The debt service savings resulting from the issuance of the refunding bonds shall be not less

than an amount equal to two percent (2%) of the principal amount of such bonds refunded. “Debt

service savings” is defined for this purpose to be the amount by which the present value of debt service

on such bonds exceeds the present value of debt service on the refunding bonds, using the yield on the

refunding bonds as the discount rate for purposes of calculating present value.

(5) Such refunding bonds shall have a principal amount or principal amounts sufficient to provide

funds for the payment of all or a portion of such bonds refunded, and in addition, for the payment of

all expenses incident to the calling, retiring or paying of such bonds and the issuance of such refunding

bonds, including:

(A) the difference in amount between the par value of the refunding bonds and any amount

less than par for which the refunding bonds are sold;

(B) any amount necessary to be made available for the payment of interest upon such

refunding bonds from the date of sale thereof to the date of payment of such bonds or to the date

upon which such bonds will be paid pursuant to the call thereof or agreement with the holders

thereof;

(C) the premium, if any, necessary to be paid in order to call or retire such bonds and the

interest accruing thereon to the date of the call or retirement; and

(D) any additional amount needed to provide for a deposit to the debt service reserve in

connection with the issuance of the refunding bonds.

(6) Such refunding bonds may be issued on a federally tax-exempt basis.