Guam § 5115 - Issuance of Bonds, Terms and Conditions Generally.

§ 5115. Issuance of Bonds, Terms and Conditions Generally.

(a) The Authority shall have the power to issue bonds, from time to

time, in its discretion, for any of its corporate purposes. The Authority

shall also have power to issue refunding bonds for the purpose of paying

or retiring bonds previously issued by it. The Authority may issue such

types of bonds as it may determine, including (without limiting the

generality of the foregoing) bonds on which the principal and interest are

payable

(1) exclusively from the income and revenues of a project

financed with the proceeds of such bonds;

(2) exclusively from the income and revenues of certain

designated projects, whether or not they are financed in whole or in

part with the proceeds of such bonds; or

(3) from its revenues generally.

(b) Any such bonds may be additionally secured by a pledge of any

loan, grant or contribution, or parts thereof, from the Federal

Government or other sources, or a pledge of any income or revenue of

the Authority, or a mortgage of any project, or part thereof, or other

property of the Authority.

(c) None of the proceeds of bonds issued for urban renewal projects,

and no proceeds or revenues from any urban renewal project shall be

used to pay the bonds or costs of, or to make contributions or loans to

any housing project, nor shall the proceeds of bonds issued for housing

projects, nor proceeds or revenues from any housing project be used to

pay the bonds or costs of, or to make contributions or loans to any urban

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renewal project, unless specifically authorized by law, or permitted by

the Federal Government in the instance of federally-aided projects.

(d) Neither the Commissioners of the Authority nor any person

executing the bonds shall be personally liable on the bonds by reason of

the issuance of the bonds.

(e) The bonds and other obligations of the Authority shall not be a

debt of the territory of Guam and in no event shall such bonds or

obligations be payable out of any funds or properties other than those of

the Authority, and they shall not constitute an indebtedness within the

meaning of any debt limitation or restriction.

(f) Bonds of the Authority are declared to be issued for an essential

public and governmental purpose and, together with interest thereon and

income therefrom, are exempt from all taxes. The provisions of this

Article exempting from taxation the Authority, its property, and its bonds

and interest thereon and income therefrom, shall be considered part of

the security for the repayment of the bonds and shall constitute, by virtue

of this Article and without necessity of being restated in the bonds, a

contract between the bondholders, and each and everyone of them,

including all transferees of said bonds from time to time, on the one

hand, and the Authority and Guam on the other.