Guam § 68111 - Covenants and Agreements That May be Contained in the

§ 68111. Covenants and Agreements That May be Contained in the

Indenture.

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Bonds or notes may be issued in accordance with the provisions of

this Chapter pursuant to an indenture approved or adopted by the Board

and approved as well by the Governor and the Legislature by resolution.

Such indenture, which may be secured by a trust agreement by and

between the Board and a Federal Reserve member trustee bank, may

include any and all covenants and agreements on the part of the

Authority as are authorized by this Chapter or as the Board deems

necessary or advisable for the better security of the bonds issued

thereunder, including, without limiting the generality of the foregoing the

power to pledge or assign all or any part of the revenues of the Board

received pursuant to this Chapter, including, without limitation, fees,

rents, charges, insurance proceeds, condemnation awards and any other

revenues and funds received in connection with any hospital facilities,

and may also mortgage any hospital facility, or part thereof, as additional

security for any bonds issued under this Division. Such indenture may

contain such provisions for protecting and enforcing the rights and

remedies of the holders of any such bonds or notes as may be reasonable

and proper and not in violation of law, including covenants setting forth

the duties of the Board in relation to the purposes to which bond or note

proceeds may be applied, the disposition or pledging of the revenues of

the Board, the duties of the Board with respect to the acquisition,

construction, maintenance, repair and operation of any hospital facilities,

the fees, rents and charges to be fixed and collected in connection

therewith, the terms and conditions for the issuance of additional bonds

or notes, and the custody, safeguarding and application of all moneys. It

shall be lawful for any Federal Reserve member trustee bank which may

act as depositary of the proceeds of bonds or notes, revenues or other

money hereunder to furnish such indemnifying bonds or to pledge such

securities as may be required by the Board. Any such indenture may set

forth the rights and remedies of the holders of any bonds or notes and of

the trustee, and may restrict the individual right of action by any such

holders. Such indenture may also contain such other provisions as the

Board may deem reasonable and proper for the security of the holders of

any bonds or notes. Expenses incurred in carrying out the provisions of

such indenture as well as any service charges to the Corporation may be

treated as a part of the cost of any hospital facilities or paid from the

revenues pledged or assigned to the payment of the principal of and the

interest on bonds or notes or from any other funds available to the Board.

In addition to the foregoing, the indenture may provide that the Governor

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and the Director of Revenue and Taxation and all other officers and

agencies of the Territory shall be bound by all the covenants and

agreements on the part of the Board set forth in such indenture and that

such officers will also perform all such covenants and agreements which,

under the Organic Act or any provision of this Code or any other statute

of the Territory, can be taken for or on behalf or in lieu of the Board only

by the Governor, the Director of Revenue and Taxation, or such other

officer or agency.