Guam § 3 - Issuance of Additional Series of Bonds.

§ 3. Issuance of Additional Series of Bonds.

(A) In addition to the 1997 Series A Bonds, the Government

may by supplemental Indenture establish one or more other Series

of Bonds, payable from and secured by the assets pledged by

THIS Indenture on a parity with Bonds previously issued, and the

Government may issue, and the Registrar may authenticate and

deliver to the purchasers thereof Bonds of any Series so

established, in such principal amount as shall be determined by

the Government but only upon compliance by the Government

with the provisions of § 3.05 and any additional requirements set

forth in said Supplemental Indenture, and subject to the following

specific conditions, which are hereby made conditions precedent

to the issuance of any such additional Series of Bonds:

(1) No Event of Default shall have occurred and then be

continuing.

(2) The Supplemental Indenture providing for the

issuance of such additional Series of Bonds shall specify the

purposes for which such Series is being issued, which shall

be one or both of the following (a) to provide moneys for

deposit into the Construction Fund and withdrawal therefrom

in accordance with law for purposes other than the refunding

of Bonds, or (b) to refund all or part of the Bonds of any one

or more Series then Outstanding, by depositing with the

Trustee, in trust, moneys or noncallable Investment

Securities constituting direct obligations of the United States

in the necessary amount to discharge all liability of the

Government with respect to the Bonds to be refunded as

provided in § 10.02.

(3) The Supplemental Indenture providing for the

issuance of such additional Series of Bonds also shall provide

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for such deposit as may be necessary to increase the balance

in the Bond Reserve Fund to an amount at least equal to the

Bond Reserve Fund Requirement with respect to all Series of

which any Bonds will be Outstanding upon the issuance of

such additional Series of Bonds. Said deposit may be made

from the proceeds of sale of such additional Series of Bonds

or any other lawful source, as provided in said Supplemental

Indenture.

(4) Fixed serial maturities or Mandatory Sinking

Account Payments, or any combination thereof, shall be

established in amounts sufficient to provide for the retirement

of all of the Bonds of such additional Series on or before their

respective maturity dates.

(5) The aggregate principal amount of Bonds issued

hereunder shall not exceed any limitation imposed by law or

by any Supplemental Indenture.

(6) Interest payment dates for such additional Series

shall be on either or both Interest Payment Dates, and

maturity dates and Mandatory Sinking Account Payment

dates shall be on Principal Payment Dates.

(7) The amount of Hotel Room Taxes for any

consecutive twelve month period out of the eighteen months

next preceding the date of execution of the Supplemental

Indenture providing for the issuance of such additional Series

of Bonds, as shown by a Certificate of the Government (and,

if appropriate, making the assumption set forth in the

following sentence), have been (or would have been) an

amount equal to at least the sum of (a) annual Bond Expenses

projected to be budgeted to be paid from Revenues, plus (b)

one hundred fifty percent (150%) of Annual Debt Service on

the Bonds; all as computed for the Bond Year in which such

sum shall be largest upon and after the issuance of such

additional Series of Bonds. If the rate or rates at which Hotel

Taxes are levied has been modified since the commencement

of such twelve month period, the Certificate of the

Government shall assume that Hotel Room Taxes were

collected at such rates as have been enacted and are effective

as of the date of execution of such Supplemental Indenture.

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(B) Nothing in this Section or in this Indenture contained

shall prevent or be construed to prevent the Supplemental

Indenture providing for the issuance of an additional Series of

Bonds from pledging or otherwise providing, in addition to the

security given or intended to be given by this Indenture, additional

security for the benefit of all Bonds, such additional Series of

Bonds or any portion of such additional Series of Bonds.

(C) Nothing in this Section or in this Indenture shall affect

any provision of any Credit Agreement requiring the Government

to obtain the consent of the Credit Provider or to satisfy any other

conditions before issuing an additional Series of Bonds.