Guam § 64108 - Covenants With Bondholders.

§ 64108. Covenants With Bondholders.

In order to secure the payment of such bonds and in addition to its

other powers, the Authority shall have power by resolution to covenant

and agree with the several holders of such bonds, as to:

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(a) The custody, security, use, expenditure or application of the

proceeds of the bonds;

(b) The use, regulation, operation, maintenance, insurance or

disposition of all or any part of any project or projects;

(c) Payment of the principal of or interest on the bonds, or any

other obligations, and the sources and methods thereof, the rank or

priority of any such bonds or obligations as to any lien or security,

or the acceleration of the maturity of any such bonds or obligations;

(d) The use and disposition of any money of the Authority,

including all revenues or other money derived or to be derived from

any project or projects;

(e) Pledging, setting aside, depositing or trusteeing all or any

part of the proceeds, revenues or other money of the Authority to

secure the payment of the principal of or interest on the bonds or

any other obligations and the power and duties of any trustee with

regard thereto;

(f) The setting aside out of the proceeds, revenues or other

money of the Authority of reserves and sinking funds, and the

source, custody, security, regulation application and disposition

thereof;

(g) The rents, fees or other charges for the use of any project or

projects, including any parts thereof theretofore constructed or

acquired and any parts, replacements or improvements thereof

thereafter constructed or acquired, and the fixing, establishment,

collection and enforcement of the same;

(h) Limitation on the issuance of additional bonds or any other

obligations or on the incurrence of indebtedness of the Authority;

(i) Vesting in a trustee or trustees, fiscal or escrow agent or

agents within or without the Territory such property, rights, powers

and duties in trust as the Authority may determine and limiting the

rights, duties and powers of such trustee or agent;

(j) Payment of costs or expenses incident to the enforcement of

the bonds or of the provisions of the resolution or of any covenant

or contract with the holders of the bonds;

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(k) The procedure, if any, by which the terms of any covenant

or contract with, or duty to, the holders of bonds may be amended or

abrogated, the amount of bonds the holders of which must consent

thereto, and the manner in which such consent may be given or

evidenced; or

(l) Any other matter or course of conduct which, by recital in

the resolution is declared to further secure the payment of the

principal of or interest on the bonds.

All such provisions of the resolution and all such covenants and

agreements shall constitute valid and legally binding contracts between

the Authority and the several holders of the bonds, regardless of the time

of issuance of such bonds, and shall be enforceable by any such holder or

holders by appropriate action, suit or proceeding in any court of

competent jurisdiction, or by proceeding in lieu of prerogative writ.