Notwithstanding any restriction on investments contained in any laws of Guam, the government of Guam, all public officers and other public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies and other persons carrying on a banking or investment business, all insurance companies or organizations, and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries, may legally invest any moneys or funds belonging to them or within their control in any bonds or other obligations issued by the Authority or issued by any public housing or urban renewal or redevelopment authority or agency in the United States, its territories and possessions or in the Commonwealth of Puerto Rico, when such bonds or other obligations are secured by a pledge of annual contributions or other

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CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY

financial assistance to be paid by the Federal Government, or when such bonds or other obligations are secured by an agreement between the Federal Government and the public housing or urban renewal or redevelopment authority or agency in which the Federal Government agrees to lend to such authority or agency, prior to the maturity of the bonds or other obligations, moneys in an amount which, together with any other moneys irrevocably committed to the payment of principal and interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity, which moneys under the terms of the agreement are required to be used for that purpose; and such bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this Section to authorize any of the foregoing to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations; provided, however, that nothing herein be construed as relieving any person from any duty of exercising reasonable care in selecting securities.

SOURCE: GC § 13918.

§ 5121. Provisions Permitted in Contracts With Federal
Government.

In any contract with the Federal Government for financial assistance to the Authority, the Authority may obligate itself, which obligation shall be specifically enforceable and shall not constitute a mortgage, notwithstanding any other laws, to convey to the Federal Government possession of or title to the project to which such contract relates, upon the occurrence of a substantial default with respect to the covenants or conditions to which the Authority is subject. The contract may further provide that in the case of such conveyance the Federal Government may complete, operate, manage, lease, convey or otherwise deal with the project in accordance with the terms of such contract; provided, that the contract requires that, as soon as practicable after the Federal Government is satisfied that all defaults with respect to the project have been cured and that the project will thereafter be operated in accordance with the terms of the contract, the Federal Government shall reconvey to the Authority the project as then constituted.

SOURCE: GC § 13919.