(a) The Authority shall have the power to issue bonds, from time to time, in its discretion, for any of its corporate purposes. The Authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it. The Authority may issue such types of bonds as it may determine, including (without limiting the generality of the foregoing) bonds on which the principal and interest are payable

(1) exclusively from the income and revenues of a project financed with the proceeds of such bonds;

(2) exclusively from the income and revenues of certain designated projects, whether or not they are financed in whole or in part with the proceeds of such bonds; or

(3) from its revenues generally.

(b) Any such bonds may be additionally secured by a pledge of any loan, grant or contribution, or parts thereof, from the Federal Government or other sources, or a pledge of any income or revenue of the Authority, or a mortgage of any project, or part thereof, or other property of the Authority.

(c) None of the proceeds of bonds issued for urban renewal projects, and no proceeds or revenues from any urban renewal project shall be used to pay the bonds or costs of, or to make contributions or loans to any housing project, nor shall the proceeds of bonds issued for housing projects, nor proceeds or revenues from any housing project be used to pay the bonds or costs of, or to make contributions or loans to any urban

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renewal project, unless specifically authorized by law, or permitted by the Federal Government in the instance of federally-aided projects.

(d) Neither the Commissioners of the Authority nor any person executing the bonds shall be personally liable on the bonds by reason of the issuance of the bonds.

(e) The bonds and other obligations of the Authority shall not be a debt of the territory of Guam and in no event shall such bonds or obligations be payable out of any funds or properties other than those of the Authority, and they shall not constitute an indebtedness within the meaning of any debt limitation or restriction.

(f) Bonds of the Authority are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, are exempt from all taxes. The provisions of this Article exempting from taxation the Authority, its property, and its bonds and interest thereon and income therefrom, shall be considered part of the security for the repayment of the bonds and shall constitute, by virtue of this Article and without necessity of being restated in the bonds, a contract between the bondholders, and each and everyone of them, including all transferees of said bonds from time to time, on the one hand, and the Authority and Guam on the other.

SOURCE: GC § 13913.

§ 5116. Maturity of Bonds; Interest; Sale; Validity; Actions
Involving Bonds.

(a) Bonds of the Authority shall be authorized by its resolution, may be issued in one or more series and shall be offered, awarded and executed in such manner, bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding the most recently published rate at which the U.S. Department of Treasury sells its treasury bills per annum, be in such denomination or denominations, be in such form, bearer, order, coupon or registered, carry such conversion or registration privileges, have such rank or priority, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption (with or without premium), as such resolution of the Authority, trust indenture or mortgage may provide, and shall be fully negotiable.

(b) The bonds may be sold at public or private sale at not less than
par.

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(c) In case any of the Commissioners or officers of the Authority whose signatures appear on any bonds or coupons shall cease to be such Commissioners or officers before the delivery of the bonds, their signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the Commissioners or officers had remained in office until such delivery.

(d) In any suit, action or proceeding involving the validity or enforceability of any bond of the Authority or the security therefor, any such bond reciting in substance that it has been issued by the Authority to aid in financing a project as defined in this Article, shall be conclusively deemed to have been issued for such purpose, and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the purposes and provisions of this Article.

(e) (1) When the Authority sells bonds at a private sale, no person standing in a fiduciary relationship with the Authority shall purchase any of the bonds.

(2) As used in this Subsection, “person” means a natural person, corporation, partnership, trust or the employer of a natural person.

(3) If the provisions of this Subsection are violated then the sale of the bonds to the violating person shall be deemed null and void ab initio.

SOURCE: GC § 13914; Subsection (a) amended by P.L. 16-42; Subsection (e)
added by P.L. 16-42.