Guam § 22952 - Source of and Security for Payment of the Bonds.

§ 22952. Source of and Security for Payment of the Bonds.

The bonds of the new issue shall be limited obligations of the

Government payable from and secured by a pledge of all or any

part of the hotel tax revenues. Any pledge made to secure the

bonds shall be valid and binding from the time the pledge is made.

The hotel tax revenues received by the Government or any trustee,

depository and custodian shall be deposited in a separate account

and shall be immediately subject to the lien of such pledge without

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 Government of such

trustee, depository or custodian, irrespective of whether the parties

have notice thereof. The indenture by which such pledge is created

need not be recorded. Hotel tax revenues pledged for the purpose

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of paying the bonds are hereby continuously appropriated for such

purpose and for the purposes of paying the charges of any trustee,

custodian, depository, auditor or credit enhancement provider for

the bonds and any other necessary bond expenses under the

indenture. All such revenues not needed for such purpose or for

the purpose of paying any bonds issued pursuant to § 1515 of Title

5, Guam Code Annotated, and any expenses relating thereto shall

be transferred periodically by any trustee or other fiduciary under

the indenture as provided by said § 1515. The obligation to make

such transfers shall not be a part of the contract with the

bondholders, and shall be subject to the modification by

amendment of this § 22952 by I Liheslaturan Guåhan (the Guam

Legislature).