17 Guam Code Ann. § 17107
Terms Used In 17 Guam Code Ann. § 17107
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- Statute: A law passed by a legislature.
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CH. 17 THE UNIVERSITY OF GUAM REVENUE BOND ACT OF 1966
and coupons issued pursuant to this Chapter, and the terms and conditions on which the same shall be executed, issued, secured, sold, paid, redeemed, funded and refunded. Reference on the face of the bonds to such indenture by its date of adoption, or the apparent date on the face thereof, is sufficient to incorporate all of the provisions thereof, and of this Chapter into the body of the bonds and their appurtenant coupons. Each taker and subsequent holder of the attached to or detached from the bonds, has recourse to all of the provisions of the indenture and of this Chapter and is bound thereby.
SOURCE: GC§ 11850.6. Repealed and reenacted by P.L. 24-275:6.
§ 17108. Covenants and Agreements That May Be Contained in
Indenture.
An indenture pursuant to which bonds are issued may, with the approval of the Governor, include any and all such covenants and agreements on the part of the Board, the Territory, the Governor, the Director of Administration or any other officer or agency of the Territory as the Board deems necessary or advisable for the better security of the bonds issued thereunder, including, without limiting the generality of the foregoing, any one or more of the following provisions:
(a) A provision that payments of principal and interest of bonds shall be secured by all or by part of revenues.
(b) A provision requiring the Director of Administration to pay or cause to be paid, punctually, the principal of all such bonds and the interest thereon on the date or dates, or at the place or places, and in the manner mentioned in such bonds and in the coupons appertaining thereto in accordance with such indenture.
(c) A provision requiring the Board to operate the project continuously, to the extent practicable under conditions as they may, from time to time, exist, in an efficient and economical manner.
(d) A provision requiring the Board to make all necessary repairs, renewals and replacements to any project, and to keep the project, at all times, in good repair, working order and condition.
(e) A provision requiring the Board to preserve and protect the security of the bonds and the rights of the holders thereof and to warrant and defend such rights.
(f) A provision requiring the Board to pay and discharge or cause to be paid and discharge all lawful claims for labor, materials and supplies or
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other charges which if unpaid, might become a lien or charge upon the revenues or any part thereof, of any project acquired, constructed or completed from the proceeds of sale of bonds, or upon any physical properties, or which might impair the security of the bonds.
(g) A provision which limits, restricts or prohibits any right, power or privileges of the Board to mortgage or otherwise encumber, sell, lease or dispose of any improvements constructed from the proceeds of sale of bonds or to enter into any lease or agreement which impairs or impedes the operation of a project, or any part thereof, necessary to secure adequate revenues or which otherwise impairs or impedes the rights of the holders of bonds with respect to such revenues.
(h) A provision requiring the Board to fix, prescribe and collect rates, rentals or other charges in connection with the services and facilities furnished from the project acquired, constructed or purchased from part or all of the proceeds of the bonds, sufficient to pay the principal of and interest on the bonds as they become due and payable, together with such additional sums as may be required for any fund created by this Chapter, for the further security of such bonds or as a depreciation charge or other charges in connection with such projects.
(i) A provision that no project acquired, constructed or completed from the proceeds of sale of bonds issued under the provisions of this Chapter shall be used without charge therefor and that no facilities of any such project shall be furnished free of charge to any person, except to the extent permitted by the indenture.
(j) A provision requiring the Board and the Director of Administration to hold or cause to be held in trust the revenues or any part of revenues pledged to the payment of such bonds and the interest thereon, or to any reserve or other fund created by this Chapter or by the indenture relating to such bonds for the further protection of such bonds, and to apply such revenues or any part of revenues or cause them to be applied only as provided in the indenture and to invest all or any part of such revenues pending such application in such securities and subject to such limitations as are specified in the indenture.
(k) A provision defining the power of the Board and the Director of Administration in applying the proceeds of the sale of any issue of bonds for the acquiring, constructing or completing of any project or any part thereof.
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(l) A provision permitting the Board to issue additional bonds or one or more additional series of bonds, equally secured with bonds theretofore issued under the indenture, for the purpose of acquiring, constructing or completing, improving or extending any project or any part thereof; and a provision limiting the power of the Board to issue any additional bonds so secured or any other additional bonds for such purpose.
(m) A provision requiring, specifying or limiting the kind, amount and character of insurance to be maintained by the Board on any project, or any part thereof, and the use and disposition of the proceeds of any such insurance thereafter collected.
(n) A provision specifying the events of default and the terms and conditions upon which any or all of the bonds of the Board then or thereafter issued may become or be declared due and payable prior to maturity, and the terms and conditions upon which such declaration and its consequences may be waived.
(o) A provision designating the rights, limitations, powers and duties arising upon breach by the Board of any of the covenants, conditions or obligations contained in the indenture.
(p) A provision prescribing a procedure by which the terms and conditions of the indenture may be subsequently amended or modified with the consent of the Board, subject to the approval of the Governor, and the vote or written assent of the holders of a specified principal amount or specified proportion of the bonds issued and outstanding, including provisions for meetings of bondholders and for the manner in which the consent of the bondholders may be given, and specifically stating the effect of such amendment or modification upon the rights of the holders of all of the bonds and interest coupons appertaining thereto, whether attached thereto or detached therefrom.
With respect to any provision relating to the modification or amendment of an indenture, the Board, with the approval of the Governor, may agree that bonds held by the Territory, the United States or any instrumentality of either thereof (including every municipal corporation, district, public corporation, board, agency or instrumentality of any kind or class) shall not be counted as outstanding bonds, or be entitled to vote or assent, but shall, nevertheless, be subject to any such modification or amendment.
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(q) A provision that the Governor, the Director of Administration and all other officers and agencies of the Territory shall (i) be bound by all of the covenants and agreements on the part of the Board set forth in such indentures, and (ii) perform all such covenants and agreements which, under the Organic Act or any provision of this Code or any other statute of the Territory, can be taken for or on behalf or in lieu of the Board only by the Governor, the Director of Administration or such other officer or agency.
(r) A provision or provisions relating to such other acts and matters as may be necessary or convenient or desirable in order better to secure the bonds or to make the bonds more marketable.
SOURCE: GC § 11850.7.