(a) The Board has the power and is hereby authorized to cause the Authority to enter into such contracts or agreements with such banks, insurance companies or other financial institutions as it determines are necessary or desirable to improve the security and marketability of the bonds or the security of the government’s obligations under any contract or agreement entered into under 12 Guam Code Ann. § 10236.

(b) Such contracts or agreements may contain an obligation to reimburse, with interest, any such banks, insurance companies or other financial institutions for advances used to pay principal of or interest on the bonds and to indemnify any such banks, insurance companies or

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

other financial institutions for costs and expenses incurred in connection with any such advance; provided, that any obligation of the Authority under any reimbursement agreement shall be payable solely from revenues.

(c) Any reimbursement agreement may include a provision that the obligations of the Authority under the agreement shall be secured by all or by part of revenues; provided, that at the time of execution and delivery of each such agreement, any such provision shall be in compliance with and shall not violate or breach any provision of any indenture then in effect with respect to bonds.

SOURCE: Added by P.L. 13-087:1 (Oct. 31, 1975) as GC § 14086. Codified as
12 Guam Code Ann. § 10237 entitled Short Term Borrowing. Repealed and reenacted by P.L.
34-070:2 (Dec. 7, 2017).

2017 NOTE: Subsection designations added pursuant to the authority granted by
1 Guam Code Ann. § 1606.