Guam § 10237 - Credit Enhancement.

§ 10237. Credit Enhancement.

(a) The Board has the power and is hereby authorized to cause the

Authority to enter into such contracts or agreements with such banks,

insurance companies or other financial institutions as it determines are

necessary or desirable to improve the security and marketability of the

bonds or the security of the government’s obligations under any contract

or agreement entered into under 12 GCA § 10236.

(b) Such contracts or agreements may contain an obligation to

reimburse, with interest, any such banks, insurance companies or other

financial institutions for advances used to pay principal of or interest on

the bonds and to indemnify any such banks, insurance companies or

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other financial institutions for costs and expenses incurred in connection

with any such advance; provided, that any obligation of the Authority

under any reimbursement agreement shall be payable solely from

revenues.

(c) Any reimbursement agreement may include a provision that the

obligations of the Authority under the agreement shall be secured by all

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

delivery of each such 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 bonds.