Guam § 5116 - Maturity of Bonds; Interest; Sale; Validity; Actions

§ 5116. Maturity of Bonds; Interest; Sale; Validity; Actions

Involving Bonds.

(a) Bonds of the Authority shall be authorized by its resolution, may

be issued in one or more series and shall be offered, awarded and

executed in such manner, bear such date or dates, mature at such time or

times, bear interest at such rate or rates, not exceeding the most recently

published rate at which the U.S. Department of Treasury sells its treasury

bills per annum, be in such denomination or denominations, be in such

form, bearer, order, coupon or registered, carry such conversion or

registration privileges, have such rank or priority, be payable in such

medium of payment, at such place or places, and be subject to such terms

of redemption (with or without premium), as such resolution of the

Authority, trust indenture or mortgage may provide, and shall be fully

negotiable.

(b) The bonds may be sold at public or private sale at not less than

par.

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(c) In case any of the Commissioners or officers of the Authority

whose signatures appear on any bonds or coupons shall cease to be such

Commissioners or officers before the delivery of the bonds, their

signatures shall, nevertheless, be valid and sufficient for all purposes, the

same as if the Commissioners or officers had remained in office until

such delivery.

(d) In any suit, action or proceeding involving the validity or

enforceability of any bond of the Authority or the security therefor, any

such bond reciting in substance that it has been issued by the Authority

to aid in financing a project as defined in this Article, shall be

conclusively deemed to have been issued for such purpose, and the

project shall be conclusively deemed to have been planned, located and

carried out in accordance with the purposes and provisions of this

Article.

(e) (1) When the Authority sells bonds at a private sale, no person

standing in a fiduciary relationship with the Authority shall

purchase any of the bonds.

(2) As used in this Subsection, "person" means a natural

person, corporation, partnership, trust or the employer of a natural

person.

(3) If the provisions of this Subsection are violated then the

sale of the bonds to the violating person shall be deemed null and

void ab initio.