Guam § 5117 - Powers of Authority With Respect to Bonds or Obligations.

§ 5117. Powers of Authority With Respect to Bonds or Obligations.

In connection with the issuance of bonds or the incurring of

obligations, and in order to secure the payment of such bonds or

obligations, the Authority, in addition to its other powers, may:

(a) Pledge all or any part of its gross or net rents, fees or

revenues, to which its right then exists or may thereafter come into

existence;

(b) Mortgage all or any part of its real or personal property,

then owned or thereafter acquired;

(c) Covenant against pledging all or any part of its rents, fees

and revenues, or against mortgaging all or any part of its real or

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personal property, to which its right or title then exists or may

thereafter come into existence or against permitting or suffering any

lien on such revenues or property; covenant with respect to

limitations on its right to sell, lease or otherwise dispose of any

project or any part thereof; and covenant as to what other, or

additional debts or obligations may be incurred by it;

(d) Covenant as to the bonds to be issued and as to the issuance

of such bonds in escrow or otherwise, and as to the use and

disposition of the proceeds thereof; provide for the replacement of

lost, destroyed or mutilated bonds; covenant against extending the

time for the payment of its bonds or interest thereon; and to

covenant for redemption of the bonds and to provide the term and

conditions thereof;

(e) Covenant subject to the limitations contained in this Article,

as to the rents and fees to be charged in the operation of projects, the

amount to be raised each year or other period of time by rents, fees

and other revenues, and as to the use and disposition to be made

thereof; create or authorize the creation of special funds for moneys

held for construction or operating costs, debt services, reserves or

other purposes, and covenant as to the use and disposition of the

moneys held in such funds;

(f) Prescribe the procedure, if any, by which the terms of any

contract with bondholders may be amended or abrogated, the

amount of bonds the holders of which must consent thereto and the

manner in which such consent may be given;

(g) Covenant as to the use, maintenance and replacement of

any or all of its real or personal property, the insurance to be carried

thereon, and the use and disposition of insurance moneys;

(h) Covenant as to the rights, liabilities, powers and duties

arising upon the breach by it of any covenant, condition or obliga-

tion; and covenant and prescribe as to events of default and terms

and conditions upon which any or all of its bonds or obligations

shall become or may be declared due before maturity, and as to the

terms and conditions upon which such declaration and its

consequences may be waived;

(i) Vest in any obligee of the Authority the right to enforce the

payment of the bonds or any covenants securing or relating to the

bonds; vest in an obligee or obligees holding a specified amount in

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bonds the right, in the event of a default by the Authority, to take

possession of and use, operate and manage any project or any part

thereof or any funds connected therewith, and to collect the rents

and revenues arising therefrom, and to dispose of such moneys in

accordance with the agreement of the Authority with said obligees;

provide for the powers and duties of such obligees and limit the

liabilities thereof; and provide the terms and conditions upon which

such obligees may enforce any covenant or rights securing or

relating to the bonds; and

(j) Exercise all or any part or combination of the powers herein

granted; make covenants and do any and all such acts and things as

may be necessary or convenient or desirable in order to secure its

bonds, or in the absolute discretion of the Authority, as will tend to

make the bonds more marketable notwithstanding that such

covenants, acts or things may not be enumerated herein.