Chapter 66

COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 1CHAPTER 66 MORTGAGE REVENUE BONDS § 66101. Short Title. § 66102. Definitions. § 66103. Powers of the Board; Incurring Indebtedness and Issuing Bonds; Special Obligations and Not In debtedness; Pledge, Lien, Priority and Trust Fund. § 66104. Amounts and R ates of Charges; Refunds. § 66105. Maximum Amount, Purpose of and Term of Bonds. § 66106. Form of and Recitals in Bonds. § 66107. Indenture Providing Terms and Conditions of Bonds. § 66108. Issues, Series and Divisions of Bonds. § 66109. Inter est on Bon ds. § 66110. Issuance and Interchange of Coupon and Regis tered Bonds. § 66111. Redemption of Bonds Prior to Maturity. § 66112. Places and Manner of Payment. § 66113. Covenants and Agreements That May be Contained in Indenture. § 66114. Bonds Negotiable Ex cept When Registered. § 66115. Trustee for Board and Holders of Bonds. § 66116. Duties and Powers of Trustee. § 66117. Guam Economic Development Authority Mortgage Fund. § 66118. Use of Balances of Funds and of Surplus Money in Funds. § 66119. Preparatio n of Bonds and Documents. § 66120. Execution and Authentication of Bonds. § 66121.

opment Authority Mortgage Fund. § 66118. Use of Balances of Funds and of Surplus Money in Funds. § 66119. Preparatio n of Bonds and Documents. § 66120. Execution and Authentication of Bonds. § 66121. Sale of Bonds; Maximum Discount. § 66122. Payment of Bonds From Sources Other Than Revenues. § 66123. Payments Which May be Made Out of Proceeds of Sale of Bonds. § 66124. Temporary Bonds. § 66125. Replacement of Bonds or Coupons. § 66126. Tax Exemptions. § 66127. Bonds as Legal Investments and as Security for Performance of Any Act. § 66128. Refunding Bonds. § 66129. Principal Amount in Which Refunding Bonds May be Issue d. § 66130. Title in Authority Subject to Trust in Favor of Bondholders.COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 2§ 66131. Use of Other Funds for Mortgage Acquisition. § 66132. Insurance. § 66133. Right of Bondholders to Bring Action. § 66134. Appropriation of Money in Funds. § 66135. Validity of Bonds, Recital or Issuance Pursuant to Chapter. § 66136. Publication of Notice of Adoption of Resolution; Statute of Limitations on Actions Involving Bonds. § 66101. Short Title.

§ 66135. Validity of Bonds, Recital or Issuance Pursuant to Chapter. § 66136. Publication of Notice of Adoption of Resolution; Statute of Limitations on Actions Involving Bonds. § 66101. Short Title. This Chapter may be cited as the Guam Economic Development Authority Mort gage Reve nue Bond Act of 1971. SOURCE: GC §53607, as added by P.L. 11 -18. § 66102. Definitions. The following terms, wherever used or referred to in this Chapter, or in any indentur e ent ered into pursuant thereto, shall have the following meanings, respec tively, unless a different meaning appears from the context: (a) Authority means the Guam Economic Development Authority, created by P.L. 8 -80, Eighth Guam Legislature. (b)Board means the Board of Directors of the Authori ty. (c)Bonds or revenue bonds means the indentur e provid ing for the issuance of revenue bonds pursuant to this Chapter. (d) Bondholder or holder of bonds or any similar terms means: (i) the bearer of any outstanding bond registered to bearer or not registered; or (ii) registered owne r of any outstanding bond. (e)Governmental instrumentality means the United States, the territory of Guam, or any public corporation, political

ed to bearer or not registered; or (ii) registered owne r of any outstanding bond. (e)Governmental instrumentality means the United States, the territory of Guam, or any public corporation, political subdivision, state, county, city, district or any instrumentality of either the United States or this Territor y. (f)Governor means the Governor of Guam. (g) Gross revenues mean all of the revenues prior to deducting operational costs. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 3(h)Indenture means a resolution or trust agreement adopted or approved by a majority of all members of the Board providing for the issuance of bonds pursuant to this Chapter. (i) Legislature means the Legislature of Guam. (j) Net revenues means the gross revenues after having deducted therefrom the operational costs. (k) Operational costs mean all costs of administration of th e mortgages, contracts, indentures, revenues and funds for which bonds are issued. (l) Organic Act means the Organic Act of Guam as amended and in effect on the effective date of this Chapter. (64 Stat. 384, Title 43, §1421 et seq., U.S.

venues and funds for which bonds are issued. (l) Organic Act means the Organic Act of Guam as amended and in effect on the effective date of this Chapter. (64 Stat. 384, Title 43, §1421 et seq., U.S. Code.) (m)Person includes any individual, firm, corporation, association, copartnership, trust, receiver, trustee or conser vator for any thereof, and also includes the United States, the territo ry of Guam, a public corporation, political subdivision, city, county, state , district or any instrumental ity of the United States or of the Territory. (n)Revenue means and includes: (i) All income, receipts and receivables derived by the Authority from mortgages acquired by it; (ii) All income, receipts and receivables derived by the Authority from contracts entered into by it; (iii) All moneys in redemption, sinking and reserve funds or other funds created to secure the bonds and to provide for the payment of the principal of and the interest and premiums thereon; (iv) All con tributions and appropriations made to the Authority, to the extent not limited in the making thereof; and (v) All earnings on any invested funds of the Authori ty, excepting as limited in contri butions and

ons and appropriations made to the Authority, to the extent not limited in the making thereof; and (v) All earnings on any invested funds of the Authori ty, excepting as limited in contri butions and appropria tions. (o) Territory means the territo ryof Guam. (p) Trustee means the trustee appointed pursuant to §2512. (q) United States means the United States of Amer ica. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 4SOURCE: GC §53607.01, as added by P.L. 11 -18; Subsec tions (h) and (p) amended by P.L. 15 -147. § 66103. Powers of the Board; In curring Indebtedness and Issuing Bonds; Special Obliga tions and Not Indebtedness; Pledge, Lien, Priority and Trust Fund. (a) The Board has power and is hereby authorized, in addition to all other powers conferred upon it by law to exercise any or all of t he powers granted to the Board by this Chapter. The Board may incur indebtedness and issue bonds to represent same for the purposes of and within the limitations provided in this Chapter. (b) All indebtedness incurred and bonds issued by the Board are special obligations of the Authority, and are secured by a pledge of and charge upon and shall be payable, as to the

d in this Chapter. (b) All indebtedness incurred and bonds issued by the Board are special obligations of the Authority, and are secured by a pledge of and charge upon and shall be payable, as to the principal thereof, interest thereon, a nd any premiums upon the redemption of any thereof, solely from and secured by a lien upon the revenues and such other funds as are described in the indenture. (c) The indenture may provide that the bonds are secured by a pledge upon the gross revenues or the net revenues, for the making of other funds available therefor, and for the priority of the bond s. Nothing herein or in an indentur e shall prevent the issuance of bonds subordinate to the lien of other bonds specified in an indenture. (d) The revenues and other funds provided in the indenture shall constitute a trust fund for the security and paym ent of the bonds and the interest and premiums thereon. SOURCE: GC §53607.02, added by P.L. 11 -18; amended by P.L. 11 -34; Subsection (a) further amended by P.L. 17-39. § 66104. Am ounts and Rates of Charges; Refunds. Payments and charges shall be fixed to yield annual revenues not less than the aggregate of the annual payments to the bond,

er amended by P.L. 17-39. § 66104. Am ounts and Rates of Charges; Refunds. Payments and charges shall be fixed to yield annual revenues not less than the aggregate of the annual payments to the bond, sinking, reserve and other funds provided in an indenture for the bonds and operational costs. Provided, however, the total payments and charges shall not exceed one and three quarters percent (1 3/4%) over interest on the bonds. SOURCE: GC §53607.03, as added by P.L. 11 -18; amend ed by P.L. 15 -141. § 66105. Maximum Amount, Purpose of and Term ofBonds.COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 5Befor e issuing any bond or bonds, the Board shall, by indenture approved by the Governor, declare the purpose for which the proceeds of the bonds proposed to be issued shall be expended and shall specify the maximumamount of bonds to be issued or sold for such purpose, and their maximum term which shall not exceed the li fe of the Authority. Bonds shall not be issued or sold for such purpose in an amount or for a term exceeding that speci fied. SOURCE: GC §53607.04, as added by P.L. 11 -18. § 66106. Form ofand Recitals in Bonds.

thority. Bonds shall not be issued or sold for such purpose in an amount or for a term exceeding that speci fied. SOURCE: GC §53607.04, as added by P.L. 11 -18. § 66106. Form ofand Recitals in Bonds. (a) All bonds shall be issued in the name of the Agency. (b) The Board shall determine the time, form and manner of issuance of bonds. (c) Ever y bond shall recite that it is not a general indebtedness of the Authority, but rather is a special obliga tion of the Authority payable solely from therevenues specified in the indenture providing for its issuance. Every bond shall recite that it is not public indebted ness of the territory of Guam as that term is used in § 11 of the Organic Act. (d) Ever y bond shall recite that it is issued pursu ant to an indenture of the Board, describ ing it by title and date. By such recital, all of the provisions of the indenture and this Chapter are incorporated into the bonds and coupons. (e) Each taker and subsequent holder of the bonds or coupons, wheth erthe coupons are attached to or detached from the bonds, has recourse to all the provisions of the indenture and of this Chapter and is bound thereby. SOURCE: GC §53607.05 as added by P.L.

ns, wheth erthe coupons are attached to or detached from the bonds, has recourse to all the provisions of the indenture and of this Chapter and is bound thereby. SOURCE: GC §53607.05 as added by P.L. 11 -18; amend ed by P.L. 15 -147. § 66107. Indenture Providing Te rms and Con ditions of Bonds. The indentures shall provide for the date or dates of issuances and maturities, interest rates, denominations, form, regis tration, transfer and interchange of any bonds and coupons to be issued, and the terms and conditions on which the same shall be executed, issued, secured, sold, paid, redeemed, funded and refunded. SOURCE: GC §53607.06, as added by P.L. 11 -18. § 66108. Issues, Series and Divisions of Bonds.COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 6An inden ture ma y provide for one or several issues of bonds an d that bonds may be issued in series or that any issue may be divid ed into one or more divisions with different maturities or dates of issue, different rates of inter est, or different terms and conditions for the bonds of the several series or divi sions. It is not necessary that all bonds of the same autho rized issue be of the same kind or charac ter,

of inter est, or different terms and conditions for the bonds of the several series or divi sions. It is not necessary that all bonds of the same autho rized issue be of the same kind or charac ter, have the same security, or be of the same inter est rate, but the terms thereof shall in each case b e provided for by the Board, with the approval of the Go vernor, at or prior to the issue thereof. SOURCE: GC §53607.07, as added by P.L. 11 -18; amend ed by P.L. 11 -34. § 66109. Interest on Bonds. (a) Bonds shall bear interest payable annually or semi -annually or in part annually and in part semi -annually, exce pt that the first coupon on any bond may be payable twelve (12) months or any number of months less than twelve (12) after the date of such bond. (b) If, upon presentation at maturity, or if redeemable and duly called for redemption, payment of the bond s or any interest coupon thereof is not ma de in accordance with the indenture of issuance, said bonds or coupons, or both, shall continue to bear interest at the rate stated in the bond until fully paid. SOURCE: GC §53607.08, as added by P.L. 11 -18; Subse ction (a) amended by P.L. 15 -141. § 66110.

or coupons, or both, shall continue to bear interest at the rate stated in the bond until fully paid. SOURCE: GC §53607.08, as added by P.L. 11 -18; Subse ction (a) amended by P.L. 15 -141. § 66110. Issuance and Interchange of Coupon and Regis tered Bonds. An indenture may pro vide that bonds may be issued as coupon bonds or as registered bonds and for the interchange of coupon bonds for the r egister ed bond s and registered bonds for coupon bonds, and may provide that bonds shall be registered as to principal only, or as to both principal and interest, or otherwise as the Board may determine. SOURCE: GC §53607.09, as added by P.L. 11 -18. § 66111. Redemption ofBonds Prior to Maturi ty. An indentur e ma y provide that bonds may be redeemed prior to maturity upon such terms, conditions and upon such notice as are stated in the indenture and upon payment of such premium as may be fixed by the indenture. No bond is subject to call or redemption prior to its fixed maturity date unless the right to exercise such call is expressly stated on the face of the bond. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 7SOURCE: GC §53607.10, as added by P.L. 11 -18. § 66112.

ss the right to exercise such call is expressly stated on the face of the bond. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 7SOURCE: GC §53607.10, as added by P.L. 11 -18. § 66112. Places and Manner of Payment. An indenture may provi de for the payment of the principal and interest of bonds at one or more places in the Territory or in the United States and in any specified coin or currency of the United States. SOURCE: §53607.11 GC, as added by P.L. 11 -18; amend ed by P.L. 15 -147. § 66113. Covenants and Agreements That May be Con tained in Indenture. An indenture may include any and all such covenants and agree - ments on the part of Authority as are authorized by this Chapter or as the Board deems neces sary or advisable for the better security of the bonds issued thereunder, including, without limiting the generality of the foregoing, any one or more of the following provisions: (a) That payments of principal and interest of bonds shall be secured by all or by part of revenue; (b) Cre ating one or mor e funds or accounts into which all or any part of the revenue shall be deposited (i) for payment of the principal of and interest on bonds at or prior to

by part of revenue; (b) Cre ating one or mor e funds or accounts into which all or any part of the revenue shall be deposited (i) for payment of the principal of and interest on bonds at or prior to maturity, or (ii) for reserve or sinking funds for the further security of bonds. All moneys in any such fund or account shall be paid out by the trustee to pay the principal of and interest and premiums on the bonds when due or when r edeemed or purchased prior to maturity, as provid ed in any indenture. (c) Requiring the Authority to caus e to be paid punctu ally the principal of an interest and premiums on the bonds on their du e dates from funds in the account or accounts provided therefore. (d) Requiring the Board to preserve and protect the security of the bonds and the rights of the h olders thereof and to warrant and defend such rights. (e) Requiring the Board and the trustee to hold or cause to be held in trust the revenues or any part of revenues pledged to the payment of such bonds and the interest and premiums thereon, and any fun d or account created there for, and to apply and cause to be applied such revenues or any part of revenues only as pro vided in the indenture.

bonds and the interest and premiums thereon, and any fun d or account created there for, and to apply and cause to be applied such revenues or any part of revenues only as pro vided in the indenture. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 8(f) To invest all or any part of such reve nues pending such application in such securities and subject to such limitations as are specified in the indenture. (g) Against entering into any agreement which would impair the security of the bonds, the revenues or the mort gages or other contract obligations acquired by it and from which the revenues are derived. (h) Against mortgaging or otherwise encum bering, selling, leasing, pledging, placing a charge upon or dispos ing of any of the revenues, mortgages or contract obliga tions from which the revenues are derived, detrimental to the security of the bonds. (i) Sp ecifying the events of default and the terms and conditions upon which any or all of the bonds may be declared du e and payable prior to maturity, and the terms and conditions upon which such declaration and its conse quenc es ma y be waived.

s and conditions upon which any or all of the bonds may be declared du e and payable prior to maturity, and the terms and conditions upon which such declaration and its conse quenc es ma y be waived. (j) For the ri ghts, liabilities, powers and duties arising upon the Agency’s breach of any covenants, conditions or obligations. (k) For vesting in the trustee the right to or duty to enforce covenants to secure payment of or in relation to the bonds and the trustees p owers, duties and limitations of its liabilities, and for the conditions upon and manner in which a substitute trustee may be appointed. (l) For the terms upon which the bondhold ers or a percentage of them ma y enforce cove nants and duties prescribed in the indenture and this Chapter. (m) The procedure by which the terms and conditions of the indenture or the bonds may be subsequently amend ed or modified with the consent of the Board, subject to the approval of the Governor, and the vote or written cons ent of the holders of a specified principal amount or specified proportion of the bonds issued and outstanding, including provisions for meetings of bondholders and for the manner in which the consent of the

he holders of a specified principal amount or specified proportion of the bonds issued and outstanding, including provisions for meetings of bondholders and for the manner in which the consent of the bondholders may be given. (n) The effect of any modification or amend ment upon the rights of the holders of all or a specified portion of any outstanding COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 9bonds and interest coupons pertaining thereto, whether attached thereto or detached ther efrom. (o) With respect to a modification or amend ment of a n indenture that bonds held by the Authority, the Territory, the United States or any instrumentality of either thereof (including every public corporation, political subdivision, city, county, district, board, agency or instru mentality of any kind or cla ss) shall not be counted as outstanding bonds, or be entitled to vote or assent, but shall, neverthe less, be subject to any such modification or amendment. (p) For the purchase out of any available funds of any outstanding bonds or other obliga tions, an d the price at and manner in which the purchase may be made.

to any such modification or amendment. (p) For the purchase out of any available funds of any outstanding bonds or other obliga tions, an d the price at and manner in which the purchase may be made. (q) That the Governor and the Director of Revenue and Taxation and all other officers and agencies of the Territory shall (i) be bound by all of the covenants and agreements on the part of the Board set forth in such indenture, and (ii) perform all such cove - nants and agreements which, under the Organic Act or any provision of this Division or any other statute of the Territo ry, can be taken for or on behalf or in lieu of the Board only by the Governor and the Director of Revenue and Taxation or such other officer or agency. (r) Capitalizing any working capital fund or interest or account or contingency fund or account. (s) Provision for the refunding of all or any bonds authorized by such inde nture, subject to the provisions and limitations as herein described. (t) Such other acts and matters as may be necessary or convenient or desirable in order to better secure the bonds or to make the bonds more marketable. SOURCE: GC §53607.12, as added by P.L.

cribed. (t) Such other acts and matters as may be necessary or convenient or desirable in order to better secure the bonds or to make the bonds more marketable. SOURCE: GC §53607.12, as added by P.L. 11 -18; Subsec tions (b) and (c) amended by P.L. 15 -147. § 66114. Bonds Negotiable Except When Regis tered. All bonds issued under the provisions of this Chapter are negotia ble instruments transfer able by physical delivery, except when regis tered in the na me of a registered owner. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 10SOURCE: GC §53607.13, as added by P.L. 11 -18. § 66115. Trustee for Board and Holders of Bonds. (a) The authority shall appoint a bank or trust company to act as trustee for the Board and the holders of the bonds issued hereunder, and the Board ma y authorize the trustee to act on behalf of the holders of the bonds, or any stated percent age ther eof, and to exercise and prosecute on behalf of the holders of the bonds such rights and remedies as may b e available to the hol ders. (b) The indenture shall provide (i) for the deposit of all revenues with the trustee and for the holding thereof by the trustee in one or more separate funds or

as may b e available to the hol ders. (b) The indenture shall provide (i) for the deposit of all revenues with the trustee and for the holding thereof by the trustee in one or more separate funds or accounts in the Guam Economic Development Authority Mortgage Reve nue Fund and (ii) fo r the transfer to such trustee of such portions of revenues as are provided as security for the bonds and for the holding thereof by such trustee in one or more separate funds or accounts in said Revenue Fund. All money in each such fund or account shall b e disbursed only as provided her ein and in the indenture. SOURCE: GC §53607.14, as added by P.L. 11 -18; amend ed by P.L. 15 -147. § 66116. Duties and Powers of Trustee. The duties and powers of the trustee may be pre scribed in an indenture with respect t o the issuance, authentication, sale and delivery of the bonds provided for therein and with respect to the payment of principal of and interest on such bonds, the redemption thereof, the registration and discharge from registration thereof, and the manage ment of any and all funds provided as security therefor. SOURCE: GC §53607.15, as added by P.L. 11 -18. § 66117.

tion thereof, the registration and discharge from registration thereof, and the manage ment of any and all funds provided as security therefor. SOURCE: GC §53607.15, as added by P.L. 11 -18. § 66117. Guam Economic Development Authority Mort gage Fund. The proceeds from the sale of all bonds autho rized by this Chapter shall be deposited for thwith to the credit of a fund to be designated as the Guam Economic Develop ment Authority Mortgage Fund, which fund is hereby created, and shall be expended for the purposes authorized by this Chapter and the indenture, subject to any limitations provide d therein. SOURCE: GC §53607.16, as added by P.L. 11 -18; amend ed by P.L. 11 -34. § 66118. Use of Balances of Funds and of Surplus Money in Funds. After payment of all operating costs and expenses and after providing for all charges required or authorized to be expended from any COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 11fund, the Board may, subject to legislative appropriation, use any surplus remaining in any fund or account for such purposes as the Board may deter mine, subject to any and all limitations or restriction con tained in any indenture .

islative appropriation, use any surplus remaining in any fund or account for such purposes as the Board may deter mine, subject to any and all limitations or restriction con tained in any indenture . After all bonds shall have been fully paid and dis charged or provisions for their payment or discharge having been irrevocably made, any moneys in any fund or account created by this Chapter or by any indenture created hereunder shall, subject to the limitation and restrictions in any inden ture, be transferred to the Authority to be used only in accordance with legislative appropriations. SOURCE: GC §53607.17, as added by P.L. 11 -18. § 66119. Preparation of Bonds and Documents. The Authority shall p repare or procure the requisite number of suitable bonds and appurte nant coupons of the denomina tions and in accor dance with the specifications contained in the indenture. The Authority shall prepare or procure the printing, engrossing or publication ofany indentures, notices, contracts, agree ments or other documents required or convenient for or pertaining to the issuance or sale of bonds. SOURCE: GC §53607.18, as added by P.L. 11 -18. § 66120.

ofany indentures, notices, contracts, agree ments or other documents required or convenient for or pertaining to the issuance or sale of bonds. SOURCE: GC §53607.18, as added by P.L. 11 -18. § 66120. Execution and Authentication of Bonds. An indentur e ma y provide for the execution and authentication of bonds and cou pons by the ma nual, lithographed or printed facsimile signature of any one or mor e officers of the Board and by additional authentication by endorsement by the manual signature or a signa ture stamp of any agent designated as trustee, and for a like impressing of the seal of the Authority. If any officer or agent whose signa ture, countersignature or endorsement appears upon the bonds or coupons ceases to be an officer or agent before the delivery of the bonds or coupons his signature, counter signature or endorsement is nevertheless valid and of the same force and effect as if he had remained such officer or agent until the delivery of the bonds and coupons. SOURCE: GC §53607.19, as added by P.L. 11-18. § 66121. Sale of Bonds; Maximum Discount. Bonds authorized to be issued under the Chapter shall be sold by the Board for cash, in accor dance with the provisions

GC §53607.19, as added by P.L. 11-18. § 66121. Sale of Bonds; Maximum Discount. Bonds authorized to be issued under the Chapter shall be sold by the Board for cash, in accor dance with the provisions of a resolution provid - ing for such sale adopted by the Board and approved by the Gov ernor. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 12Such resolution by the Board may provide that the bonds shall be sold at either public or private sale upon such notice as shall be specified in such resolution, may fix terms and conditions for the sale or other disposition of the bonds and may pro vide that the bonds shall be sold at less than their par or face value, except that the discount on any bonds so sold shall not exceed five percent (5%) of the par value thereof without the written consent of the Governor. Before any bonds are delivered to the purchaser thereof, all coupons, if any, which have matured on or before the date of such delivery shall be detached there from and cancelled. SOURCE: GC §53607.20, as added by P.L. 11 -18; amend ed by P.L. 11 -34. § 66122. Payment of Bonds From Sources Other Than Revenues.

e date of such delivery shall be detached there from and cancelled. SOURCE: GC §53607.20, as added by P.L. 11 -18; amend ed by P.L. 11 -34. § 66122. Payment of Bonds From Sources Other Than Revenues. The Board may use and expend all or any part of any funds other than revenues or proceeds of any property owned by it, whether received by gift, appropria tion or otherwise (if not restricted as to the use of such funds or proceeds of property by the terms of gift or trust or provi sion of law) for the pay ment of bonds issued pursuant to the provisions of this Chapter and of inter est due ther eon. SOURCE: GC §53607.21, as added by P.L. 11 -18. § 66123. Payments Which May be Made Out of Proceeds of Sale o f Bonds. The proceeds of sale of any bonds may be expended for any one or more of the following purposes, all as provided in the indenture relating to such bonds: (a) For the acquisition of notes of any person secured by a mortgage d escribed in §2103(i) of this Title to accom plish any lawful purpose of the Authority; (b) For the payment of legal and fiscal fees and costs relating to the issuance and sale of the bonds; (c) For payment of any other costs or expenses relating to the

lawful purpose of the Authority; (b) For the payment of legal and fiscal fees and costs relating to the issuance and sale of the bonds; (c) For payment of any other costs or expenses relating to the authorization, issuance or sale of bonds; (d) For deposit in any one or more reserve funds or accounts or in any working capital fund or account or contingency fund or account relating to mortgage acquisi tion; (e) For payment of interest on bonds during the period of actual mortgage acquisition;COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 13(f) For payment of trustees’ fees and costs and fees incurred by it; (g) For payment of the principal of and interest on any indebtedness incurred pursuant to this Chapter that is by its terms repayable from the proce eds of sale of bonds. SOURCE: GC §53607.22 as added by P.L. 11 -18; amend ed by P.L. 11 -34, Subsection (a) further amended by P.L. 17 -39. § 66124. Tem porary Bonds. An indenture may provide that pending the actual issuance or delivery of definitive bonds, th e Board may issue temporary or interim bonds, certificates or receipts of any denomination whatsoever, and with or without coupons, to be exchanged for defini

ance or delivery of definitive bonds, th e Board may issue temporary or interim bonds, certificates or receipts of any denomination whatsoever, and with or without coupons, to be exchanged for defini tive bonds when ready for delivery. SOURCE: GC §53607.23, as added by P.L. 11 -18. § 66125. Repl acement of Bonds or Coupons. The inden ture may provide for the replacement of lost, destroyed or mutilated bonds or coupons. SOURCE: GC §53607.24, as added by P.L. 11 -18. § 66126. Tax Exemptions. Bonds issued pursuant to the provisions of this Chapter an d the interest or income there from are exempt from taxation in accordance with the provisions of the last sentence of § 11 of the Organic Act. (§1423a, Title 48, U.S. Code.) SOURCE: GC §53607.25, as added by P.L. 11 -18. § 66127. Bonds as Legal Investments and as Security for Performance of Any Act. Notwith standing any other provi sion of law, all bonds sold and delivered pursuant to the provisions of this Chapter are legal investments for all trust funds and for the funds of all banks, both commercial and savings, and may be deposited as security for the perfor mance of any act whenev erany evidence of indebtedness of the Territory

or all trust funds and for the funds of all banks, both commercial and savings, and may be deposited as security for the perfor mance of any act whenev erany evidence of indebtedness of the Territory may be so deposited, and may also be used as security for the deposit of public moneys in banks in the Territory. SOURCE: GC§53607.26, as added by P.L. 11 -18. § 66128. Refunding Bonds.COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 14The Board, with the approval of the Governor, and the consent of the Legislature by resolution, may provide for the issu ance, sale or exchange of refunding bonds for the purpose of redeeming or retiring any bonds issued under the provisions of this Chapter. All provisions of this Chapter applicable to the issuance of bonds are applicable to the funding or refunding bonds and to the issuance, sale or exchange thereof. SOURCE: GC §53607.27, as ad ded by P.L. 11 -18. § 66129. Principal Amount in Which Refunding Bonds May be Issued. Refunding bonds may be issued in a princi pal amount sufficient to provide funds for the payment of all bonds to be refund ed thereby, and in addition for the payment of all expenses incident to the calling,

g bonds may be issued in a princi pal amount sufficient to provide funds for the payment of all bonds to be refund ed thereby, and in addition for the payment of all expenses incident to the calling, purchasing, retiring or paying of such outstanding bonds, and the issuance of such refunding bonds. These expenses include (i) the differ ence in amount between the par value of the refunding bonds and any a mount less t han par for which the refunding bonds are sold, (ii) any amount necessary to be made available for the payment of the interest upon such refunding bonds from the date of sale thereof to the date of payment of the bonds to be refunded or to the date upon wh ich the bonds to be refunded will be paid pursu ant to the call thereof or agreement with the holders thereof, and (iii) the premium, if any, necessary to be paid in order to call or retire the outstanding bonds and the interest accruing thereon t o the dat e of the call or retire ment. SOURCE: GC §53607.28, as added by P.L. 11 -18. § 66130. Title in Authority Subject to Trust in Favor of Bondholders. Title to the Guam Eco nomic Development Authority Mortgage Fund and the revenues and income therefrom is in the

d by P.L. 11 -18. § 66130. Title in Authority Subject to Trust in Favor of Bondholders. Title to the Guam Eco nomic Development Authority Mortgage Fund and the revenues and income therefrom is in the Authority. The title to any moneys, revenues, bond reserve funds and other funds and ac - counts created by this Chapter or any indenture and the income thereof pledged to the payment of the principal or interest of any bonds is subject to any trusts dec lared in favor of the bondholders. SOURCE: GC §53607.29, as added by P.L. 11 -18; amend ed by P.L. 11 -34. § 66131. Use of Other Funds for Mortgage Acquisition. In addition to the proceeds of any bonds issued and sold pursuant to this Chapter, the Board ma y use for the acquisi tion of mort gages any available money or funds of the Authority and any money or funds made COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 15available to the Authority by any person or provided from any sources which ma y be expended for the accomplishing of the purposes set forth in this Chapter or in this Division. SOURCE: GC §53607.30, as added by P.L. 11 -18. § 66132. Insurance.

rovided from any sources which ma y be expended for the accomplishing of the purposes set forth in this Chapter or in this Division. SOURCE: GC §53607.30, as added by P.L. 11 -18. § 66132. Insurance. The Board may insure against loss of revenues from any cause whatso ever, the proceeds of which shall be used solely for the payment or security of bond s and the interest thereon. An indenture may provide for the carrying of such insurance or any other insurance in such amount and of such character as shall be specified in such indenture, for the payment of the premiums thereon and for the disposition of all proceeds received from any such insurance. At the option of the Board, or as provided in any indenture, any insurance may be provided by funded reserves or any other means. SOURCE: GC §53607.31, as added by P.L. 11 -18. § 66133. Right of Bondholders t o Bring Action. The holder of any bond issued pursuant to this Chapter may by account ing, injunction, mandamus or other appropriate proceeding require and compel the performance of any of the duties imposed upon or assumed by the Authority, the Board, the Governor, the trustee or any other officer or agency of the Authority or the

roceeding require and compel the performance of any of the duties imposed upon or assumed by the Authority, the Board, the Governor, the trustee or any other officer or agency of the Authority or the Board of the Territory, or any employee thereof, or the collection, deposit, investment, application and disbursement of all revenues or in connec tion with the deposit, investme nt and disburse ment of the proceeds received from the sale of bonds issued pursuant to this Chapter. The enumeration of such rights and reme dies does not, however, exclude the exercise or prosecu tion of any other rights or remedies available to the hold ers of bonds issued pursuant to this Chapter. All remedies are alternative and cumu lative and the use of one shall not exclude any other remedy. SOURCE: GC §53607.32, as added by P.L. 11 -18. § 66134. Appropriation of Money in Funds. Except where specifi c appropriation is required by this Chapter, all money in the funds and accounts created by this Chapter or any inden ture is her eby appropriated for expenditure in carrying out the purposes herein and ther ein provided. SOURCE: GC §53607.33, as added by P .L. 11 -18.

d accounts created by this Chapter or any inden ture is her eby appropriated for expenditure in carrying out the purposes herein and ther ein provided. SOURCE: GC §53607.33, as added by P .L. 11 -18. COL12010612GCA AUTONOMOUS AGENCIES CH.66MORTGAGE REVENUE BONDS 16§ 66135. Validity of Bonds, Recital or Issuance Pursu ant to Chapter. Any indenture authorizing bonds may provide that the bonds shall recite that they are issued pursuant to this Chapter and bonds containing such recital are conclu sively dee med valid and issued in conformity with this Chapter. SOURCE: GC §53607.34, as added by P.L. 11 -34. § 66136. Publication of Notice of Adoption of Resolu tion; Statute o f Limitations on Actions Involving Bonds. Within fifteen (15) days of the adoption of a resolution by the Board consti tuting an indenture providing for the issuance of bonds under this Chapter, the Board shall pub lish notice of adoption of the resolution, stating the aggre gate princi pal amount of bonds pro posed to be issued, once in a newspaper of general circulation in Guam. No action attack ing, questioning or affecting in any way the validity of any bonds issued under such a resolution, or seeking to enjoin

be issued, once in a newspaper of general circulation in Guam. No action attack ing, questioning or affecting in any way the validity of any bonds issued under such a resolution, or seeking to enjoin the issuance of such bonds, may be commenced by any person more than sixty (6 0) da ys after the date of publication of the notice of adoption of such resolution. SOURCE: GC §53607.35, as added by P.L. 11 -34. ----------