12 Guam Code Ann. § 1203
Terms Used In 12 Guam Code Ann. § 1203
- Contract: A legal written agreement that becomes binding when signed.
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(a) Sue and be sued in all actions and proceedings in all court and tribunals of competent jurisdiction.
(b) Adopt a seal and alter it at its pleasure.
(c) Provide, develop, expand and maintain airports and landing places for aircraft of any kind and the support facilities it determines to be incidental or necessary to the proper utilization of such airports and landing places.
(d) Acquire by purchase, condemnation, donation, lease, or otherwise, real or personal property necessary to the full or convenient exercise of any of its powers of purposes.
(e) Operate and maintain the airports, landing places and support facilities under its jurisdiction for public and private use.
(f) Improve, construct or reconstruct, lease, furnish or refurnish, use, repair, maintain, control, sell or dispose of its property, including any buildings, structures, lighting equipment and all other equipment and facilities necessary therefor; and notwithstanding any other provision of law, make and enter into contracts, leases and permits for the use
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of airport facilities and properties for airport purposes, and visitor related activities, and make and enter into airline agreements, without prior approval of I Liheslaturan Guåhan, [Legislature] as long as these agreements are in conformity with the provisions of § 1203.1 of this Title.
(g) Issue special revenue or general revenue bonds to finance in whole or in part the cost of acquisition, purchase, construction, reconstruction, improvement, betterment or extension of the airports.
(h) Impose, prescribe and collect rates, rentals, fees and charges for the use and services of, and the facilities and commodities furnished by the Authority for public and private use.
(i) Pledge for the punctual payment of the general revenue bonds and interest thereon all or part of the revenue of the airports (including improvements, betterments or extension thereto thereafter constructed or acquired), which shall be sufficient to pay the principal of and interest on such bonds as they shall become due and to create and maintain reasonable reserves to pay the principal thereof and interest thereon, and pledge for the punctual payment of special revenue bonds and interest thereon all or part of the income and receipts derived by the Authority from agreements relating to the loan of the proceeds of such bonds or the lease of facilities financed from the proceeds of such bonds and the rights and interest of the Authority in such agreement or lease, which shall be sufficient to pay the principal of and interest on such bonds as they shall become due and to create and maintain reasonable reserves to pay the principal thereof and the interest thereon.
(j) Make and enter into agreements with one (1) or more banks or other credit enhancement providers for the issuance of letters of credit or such other banking or credit enhancement arrangements as the Authority deems necessary to improve the security and marketability of general revenue or special revenue bonds; provided, that the terms and provisions of any such letter of credit or other banking or credit enhancement arrangement shall be approved in the
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bond resolution; and provided, further, that the fees for any such letter of credit or other banking or credit enhancement arrangements may be included as a cost of issuance of such bonds.
(k) enter into any contracts in connection with, or incidental to, the issuance of bonds, or the carrying of any investment or program of investment or entering into or maintaining any agreement which secures bonds, which the Authority determines to be necessary or appropriate to place the obligation or investment of the Authority, as represented by the bonds, investment, program of investment or agreement and the contract or contracts, in whole or in part, on the interest rate, currency, cash-flow, or other basis desired by the Authority in furtherance of the purposes of this Chapter, including, without limitation, contracts commonly known as interest rate swap agreements or contracts providing for payments based on levels of, or changes in, interest rates, or contracts to exchange cash flows or a series of payments, or contracts, including, without limitation, interest rate floors or caps, options, put or call to hedge payment, rate, spread, or similar exposure with the parties, selected by the means, and containing the payment, security, default, remedy, and other terms and conditions, determined by the Authority, after giving due consideration for the creditworthiness of the counter parties, where applicable, including any rating by a nationally recognized rating agency or any other criteria as may be appropriate; provided, that any amounts received by the Authority pursuant to any such contract shall constitute Revenues and that any obligation of the Authority under any such contract shall be payable solely from, and secured solely by a pledge of, Revenues; and provided further that for purposes of § 1206 of this Chapter, such obligations shall constitute costs relating to the ownership, use and operation of the Airport.
Such contracts may include contracts pursuant to which the Authority receives an up-front payment in exchanges for which the Authority agrees to make payments based upon a fixed rate which is greater than the fixed rate that the counterparty to such agreement would require in order to
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agree to make payments based upon the variable rate to be used to calculate the payments of such counterparty pursuant to such agreement.
SOURCE: GC § 62102, as reenacted by P.L. 16-093 (June 15, 1982). Amended by P.L. 21-135:5 (Sept. 24, 1992). Subsection (f) amended by P.L. 25-139:2 (May 22, 2000). Subsection (k) added by P.L. 25-127:2 (May 22, 2000). Subsection (k) amended by P.L. 26-153:6 (Oct. 31, 2002).
NOTE: P.L. 26-127 contains additional, uncodified conditions governing the issuance of the bonds authorized by this subsection.