Guam § 22409 - Capital Improvement Highway Debt.

§ 22409. Capital Improvement Highway Debt.

(a) The Governor of Guam is authorized to create a debt or

debts of the government of Guam in aggregate principal amount

not to exceed Thirty-five Million Dollars for the purposes of

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implementing capital improvement highway projects; provided,

however, that the terms and conditions of the debt or debts shall

be approved by the Legislature by Resolution. The sentence

contained in 12 GCA § 2103(k) stating: The failure of the

Legislature to adopt a resolution rejecting the terms and conditions

of the issuance of the bonds for forty-five (45) calendar days of

the date of its submission to the Legislative Secretary shall be

concurrence to the issuance of the bonds, shall not apply to the

provisions of this Section and § 22409 of this Article.

(b) Such debt or debts may be created by a loan or other

agreement executed by the Governor containing such terms as are

consistent with this Section and § 22409 of this Article or may be

created by the issuance of bonds in one or more series sold at such

terms as are consistent with this Section and § 22409 of this

Article.

(c) Any bonds authorized by this Section shall be issued

pursuant to an indenture executed by the Governor on behalf of

the government of Guam, which indenture shall specify the forms,

amounts, maturity dates, interest rates, interest payment dates,

denominations, places of payment, registration provisions, rights

of exchange, redemption dates and default provisions for such

bonds and shall otherwise provide for the use of proceeds of such

bonds and the security for such bonds, including the pledge

authorized by § 22409 of this Article, in a manner not inconsistent

with this Section and § 22409 of this Article.

(d) Any debt or debts authorized by this Section shall

constitute the valid and legally binding limited obligation of the

government of Guam payable from and secured by a pledge of the

revenues described in § 22409 of this Article, as amended. The

validity of any such debt or debts shall not be affected by the

validity or regularity of any proceedings for the implementation

of capital improvement highway projects funded by the debt or

debts.