Guam § 14236 - Payment Agreements.

§ 14236. Payment Agreements.

(a) In addition to and in amplification of the powers conferred upon the Board by the Guam

Waterworks Authority 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,

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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 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 revenues.

(b) 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 bonds.