Guam § 81104 - Tobacco Receipts; Assignment to Authority.

§ 81104. Tobacco Receipts; Assignment to Authority.

(a) The tobacco receipts due to the government after April 10,

2001 under the Master Settlement Agreement, and the government=s right

to be paid tobacco receipts after April 10, 2001, under the Master

Settlement Agreement, are hereby irrevocably and absolutely assigned to

the Authority. On and after the date of enactment of this Chapter, the

government shall have no right, title, or interest in or to the tobacco

receipts and other rights described in the first sentence of this Section,

and such tobacco receipts and other rights are property of the Authority

and not of the government. The government hereby directs the

independent auditor and the escrow agent to make all these payments to

the Authority, or its designee, in accordance with instructions that may

be given by the Authority from time to time.

The assignment and direction made in this Subsection are

irrevocable and are a part of the contractual obligation owed to the

bondholders. The government, through the Director of the Department

of Administration, shall within thirty (30) days of the enactment of this

Chapter, notify the independent auditor and the escrow agent that the

tobacco receipts have been assigned to the Authority and shall instruct

the independent auditor and the escrow agent that all tobacco receipts

due after April 10, 2001 are to be paid directly to the Authority, or its

designee.

(b) In consideration of the assignment by the government to the

Authority pursuant to Subsection (a), the Authority shall:

(1) cause all proceeds of bonds issued under this Chapter

(other than bonds issued to refund bonds previously issued under

this Chapter) to be delivered promptly to the respective tobacco

trust funds, except as needed to pay costs of issuance of the bonds

or to establish any required reserve fund for the bonds; and

(2) cause all amounts released from the lien of the indenture

for bonds issued under this Chapter to be delivered promptly to the

respective tobacco trust funds.