Guam § 68110 - Bonds and Notes.

§ 68110. Bonds and Notes.

The Board is hereby authorized to provide for the issuance, at one

time or from time to time, of bonds or notes in anticipation of the

issuance of bonds, useful or necessary in carrying out and effectuating

the purposes provided in the indenture authorizing the issuance of such

bonds. The principal of and the interest on such bonds or notes shall be

payable solely from funds provided under this Chapter for such payment.

Any such notes may be made payable from the proceeds of bonds or

renewal notes or, in the event bond or renewal note proceeds are not

available, such notes may be paid from any available revenues or other

funds provided therefor. The bonds or notes of each issue shall be dated

and may be made redeemable before maturity at the option of the Board

at such price or prices and upon such terms and conditions as may be

determined by the Board. Any such bonds or notes shall bear interest at

such rate or rates as may be determined by the Board. Notes shall mature

at such time or times not exceeding five (5) years from their date or dates

and bonds shall mature at such time or times not exceeding forty (40)

years from their date or dates, as may be determined by the Board. The

Board shall further determine the form and manner of execution of the

bonds or notes, including any interest coupons to be attached thereto, and

shall fix the denomination or denominations and the place or places of

payment of principal and interest, which shall be a Federal Reserve

member trustee bank within or without the Territory. In case any officer

whose signature or a facsimile of whose signature shall appear on any

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bonds or notes or coupons attached thereto shall cease to be such officer

before the delivery thereof, such signature or such facsimile shall

nevertheless be valid and sufficient for all purposes the same as if he had

remained in office until such delivery. The Board may also provide for

the authentication of the bonds or notes by a trustee or fiscal agent. The

bonds or notes may be issued in coupon or in registered form, or both as

the Board may determine, and provision may be made for the registration

of any coupon bonds or notes as to principal alone and also as to both

principal and interest, and for the reconversion into coupon bonds or

notes of any bonds or notes registered as to both principal and interest:

and for the interchange of registered and coupon bonds or notes.

Such bonds or notes may be sold in such manner, either at public or

private sale, and for such price as the Board shall determine to be for the

best interests of the Corporation and effectuate best the purposes of this

Chapter, except that the discount of any bonds so sold shall not exceed

five percent (5%) without the written consent of the Governor.

The proceeds of any bonds or notes shall be used solely for the

purposes for which issued and shall be disbursed in such manner and

under such restrictions, if any, as the Board may provide in the indenture

authorizing and securing the issuance of such bonds or notes.

Prior to the preparation of definitive bonds, the Board may, under

like restrictions, issue interim receipts or temporary bonds, with or

without coupons, exchangeable for definitive bonds when such bonds

shall have been executed and are available for delivery. The Board may

also provide for the replacement of any bonds or notes which shall

become mutilated or shall be destroyed or lost.

Bonds or notes may be issued under the provisions of this Chapter

without obtaining, except as otherwise expressly provided in this

Chapter, the consent of any department, division, commission, board,

body, bureau or agency of the Territory, and without any other proceed-

ings or the happening of any conditions or things other than those

proceedings, conditions or things which are specifically required by this

Chapter and the provisions of the indenture authorizing and securing the

issuance of, such bonds or notes.