Guam § 10236 - Payment Agreements.

§ 10236. Payment Agreements.

In addition to and in amplification of the powers conferred upon the

Board by the Jose D. Leon Guerrero Commercial Port Act, this Article or

any other law of Guam or of the United States, the Board has power and

is hereby authorized to cause the Authority to enter into any contracts in

connection with, or incidental to, the issuance of bonds or other

indebtedness, or the carrying of any investment or program of investment

or entering into or maintaining any agreement which secures bonds or

other indebtedness (each, a “payment agreement”), which the Board

determines to be necessary or appropriate to place the obligation or

investment of the Authority, as represented by the bonds or such

indebtedness, investment, program of investment or agreement and the

COL1312018

contract or contracts, in whole or in part, on the interest rate, currency,

cash-flow, or other basis desired by the Board in furtherance of the

purposes of this Chapter, including, without limitation, contracts

commonly known as interest rate swap agreements or contracts

providing for payments based on levels of, or changes in, interest rates,

or contracts to exchange cash flows or a series of payments, or contracts,

including, without limitation, interest rate floors or caps, options, put or

call to hedge payment, rate, spread, or similar exposure with the parties,

selected by the means, and containing the payment, security, default,

remedy, and other terms and conditions, authorized by the Board, after

giving due consideration for the creditworthiness of the counterparties,

where applicable, including any rating by a nationally recognized rating

agency or any other criteria as may be appropriate; provided, that any

amounts received by the Authority pursuant to any payment agreement

shall constitute revenues and that any obligation of the Authority under

any payment agreement shall be payable solely from, and secured solely

by a pledge of, revenues in accordance with 12 GCA § 10237. Any

payment agreement may include a provision that any obligation of the

Authority under any such payment agreement shall be secured by all or

by part of revenues; provided that, at the time of execution and delivery

of each payment agreement, any such provision shall be in compliance

with and shall not violate or breach any provision of any indenture then

in effect with respect to the bonds.