Guam § 81105 - Powers of the Board.

§ 81105. Powers of the Board.

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(a) In addition to the powers contained elsewhere in this Division,

the board has all power necessary, useful or appropriate to administer the

functions of the Authority under this Chapter and to effectuate the

purposes of this Chapter, including, but not limited to, the power to:

(1) have perpetual succession, subject to termination by

amendment of this Division only after the date on which no bonds

issued under this Chapter are outstanding, plus one (1) year and one

(1) day thereafter;

(2) sue and be sued in its own name;

(3) adopt, promulgate, amend and repeal bylaws, not

inconsistent with provisions in this Chapter;

(4) enter into contracts, arrangements, agreements and other

instruments necessary or convenient to the exercise of the powers

granted in this Chapter;

(5) enter into agreements relating to the tobacco trust funds

for the purpose of managing and controlling the transfer of funds

between the Authority and the tobacco trust funds, and governing

the investment and the monitoring and record keeping of these

funds, for purposes of maintaining the exemption from Federal

income tax of interest on bonds and for other purposes;

(6) enter into, amend and terminate agreements in the nature

of interest rate swaps, forward security supply contracts, agreements

for the management of interest rate risks, agreements for the

management of cash flow, and other agreements of a similar nature,

with respect to bonds issued pursuant to this Chapter;

(7) arrange for insurance, guarantees, letters of credit, and

other forms of collateral or security, or credit support from any

public or private entity for the payment of any bonds, including the

power to pay premiums or fees on any insurance, guarantees, letters

of credit, and other forms of collateral or security, or credit support;

provided, however, that any reimbursement obligation of the

Authority under such arrangement shall be payable solely from the

same sources as debt service on the bonds is payable;

(8) enter into contracts and expend funds to obtain

accounting, management, legal, financial consulting, trusteeship and

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other professional services necessary or convenient to the operations

of the Authority;

(9) direct the escrow agent with respect to the disbursement to

the Authority, or its designee, of the tobacco receipts, and receive

and accept the tobacco receipts;

(10) invest funds held by the Authority under this Chapter in

any investment permitted by the indenture under which the bonds

are issued;

(11) direct the Attorney General of the government to enforce

in the name of the government or the Authority, and if permissible,

to enforce directly through the Authority=s own attorneys in the

name of the government or the Authority, the Master Settlement

Agreement, but the board may not give any approval of any

amendment to the Master Settlement Agreement without the

approval of I Liheslaturan Guåhan [Guam Legislature]; and

(12) do all other things necessary or convenient to exercise

powers granted or reasonably implied by this Chapter.

(b) The Authority is an independent public instrumentality of the

government, and the exercise of its powers pursuant to this Chapter is an

essential governmental function. Notwithstanding any other provision of

law, the Authority is not authorized, and no public officer, organization,

entity or other person shall authorize the Authority, to become a debtor

in a case under the United States Bankruptcy Code (Title 11 of the

United States Code), to make an assignment for the benefit of creditors,

or to become the subject of any similar case or proceeding. The

provisions of this Subsection (b) are for the benefit of the holders of any

bonds and are a part of the contractual obligation owed to such

bondholders, and the government shall not modify or delete the

provisions of this Subsection (b) before the date, which is one (1) year

and one (1) day after the Authority no longer has any bonds outstanding.