Guam § 10221 - Bonds Shall Be Secured by Revenues of System.

§ 10221. Bonds Shall Be Secured by Revenues of System.

(a) All bonds authorized by this Article shall be secured by a

statutory lien on revenues of the system.

(1) This lien shall arise automatically without the need for any

action or authorization by I Maga’låhen Guåhan, the government of

Guam, the Authority or any other person or entity.

(2) Such lien shall be valid and binding from the time bonds

are issued.

(3) The revenues of the system shall immediately be subject to

such lien, and the lien shall automatically attach to the revenues of

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the system and be effective, binding, and enforceable against the

Authority, its successors, assignees, and creditors, and all others

asserting rights therein, irrespective of whether those parties have

notice of the lien and without the need for any physical delivery,

recordation, filing, or further act.

(4) Revenues of the system that are not required to make

payments on the bonds shall automatically, and without the need for

any further action, be released from such lien and shall be available

for appropriation for any other lawful purpose of the government.

(5) The statutory lien described in this Section shall not be

subject to Division 9 of Title 13, Guam Code Annotated, or any

successor statute.

(b) In addition to the statutory lien provided for in this Section, an

indenture may provide that payment of the bonds and the interest thereon

shall be secured by a pledge of and lien upon all or a portion of the

revenues of the system.

(1) Any such pledge and lien shall be valid and binding from

the time the pledge is made without any further act.

(2) The revenues pledged and thereafter received by the

Authority or by any trustee, depository or custodian shall be

deposited in the Jose D. Leon Guerrero Commercial Port Revenue

Fund and shall be immediately subject to the lien of such pledge

without any physical delivery thereof or further act, and the lien of

such pledge shall be valid and binding against all parties having

claims of any kind in tort, contract or otherwise against the

Authority or such trustee, depository or custodian, irrespective of

whether the parties have notice thereof.

(3) The pledge shall not be subject to Division 9 of Title 13,

Guam Code Annotated, or any successor statute.

(4) The indenture by which such pledge is created need not be

recorded.