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 payment of any costs or expenses of the acquisition, construction or improvement of the system or any part thereof or any costs or expenses incidental thereto, including payment to the United States or any other public body for the portion to be borne by the Authority of the cost of any work done by the United States or such public body for or jointly or in conjunction with the Board;

(b) for payment of any engineering, inspection, legal, consultants’, bond trustees’, escrow agents’ or paying agents’ fees relating or incidental to:

(1) the acquisition, construction or improvement of the system or any part thereof; or

(2) the authorization, issue or sale of bonds;

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12 Guam Code Ann. AUTONOMOUS AGENCIES
CH. 10 PORT AUTHORITY OF GUAM

(c) for payment of any costs or expenses relating to the authorization, issuance or sale of bonds;

(d) for deposit in any one or more reserve funds or accounts in lieu of insurance or in any working capital fund or account or contingency fund or reserve account relating to the system;

(e) for payment of interest on bonds during the projected period of acquisition, construction or improvement of the system or any part thereof for the acquisition, construction or improvement of which such bonds have been issued and for a period not to exceed three (3) years thereafter;

(f) for deposit in any reserve or sinking fund;

(g) for payment of the principal of and interest on any indebtedness incurred pursuant to 12 Guam Code Ann. § 10235 that is by its terms repayable from the proceeds of sale of bonds;

(h) for payment of any prior bonds or other obligations of the
Authority; or

(i) The Authority is prohibited from using bond proceeds for any purpose not provided for in this Section without legislative approval in the form of duly enacted legislation.

SOURCE: Added by P.L. 13-087:1 (Oct. 31, 1975) as GC § 14068. Codified as
12 Guam Code Ann. § 10220. Repealed and reenacted by P.L. 34-070:2 (Dec. 7, 2017).

2017 NOTE: This provision was originally enacted as Bonds: Execution and
Authentication, which was reenacted by P.L. 34-070:2 (Dec. 7, 2017) as 12 Guam Code Ann. § 10216, Payments Which May Be Made Out of Proceeds of Sale of Bonds.