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’ 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;

(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 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 of not to exceed three (3) years thereafter;

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

(g) For the payment of the principal of and interest on any indebtedness incurred pursuant to 12 Guam Code Ann. § 14235 that
is by its terms repayable from the proceeds of sale of bonds;
or

(h) For the payment of any prior bonds or other obligations of the Authority.

SOURCE: Added by P.L. 28-071:2 (Nov 3, 2005).

2013 NOTE: Lower case roman numerals in subsection (b) were altered to adhere to the Compiler’s alpha-numeric scheme in accordance to 1 Guam Code Ann.
§ 1606.