(a) Authorization of Issuance of Limited Obligation Highway Bonds. The Governor of Guam is authorized to issue new bonds of the government of Guam in an aggregate principal amount not

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to exceed Sixty Eight Million Five Hundred Thousand Dollars ($68,500,000) for the purposes of refunding all or a portion of the Government of Guam Limited Obligation Highway Bonds, 1985
Series A, implementing the Capital Improvement Highway Projects enumerated in Subsection (j) of this Section, and paying expenses incurred in connection with the issuance of such new bonds; provided, however, that the issuance of the new bonds shall not cause a violation of the debt limitation provisions of 48 U.S.C.
§1423a.

(b) Terms and Conditions Determined by Indenture. The terms and conditions of the bonds shall be as determined by the Governor by the execution of an indenture securing the bonds upon or prior to the issuance of the bonds. The indenture shall contain such terms and conditions as are consistent with this Section.

(c) Valid and Binding Obligation. To the extent that the debt limitation provisions of 48 U.S.C. § 1423a are not violated, any bonds authorized by this Section shall constitute the valid and legally binding limited obligations of the government of Guam payable solely from and secured by a pledge of the revenues pledged pursuant to Subsection (d) of this Section. The validity of any such bonds shall not be affected by the validity or regularity of any proceedings for the implementation of Capital Highway Improvement Projects funded by the new bonds or the bonds being refunded or by the application of any escrow created to pay debt service on the bonds being refunded.

(d) Pledge of Revenues; Not a General Obligation. All or any part of the revenues from the taxes levied pursuant to Article 4 of Chapter 26 of Title 11 of the Guam Code Annotated and from the license fees and penalties imposed pursuant to §§ 7146, 7159,
7170, 7171, 3102, 7173 and 11101 of Title 16 of the Guam Code Annotated may be pledged to secure the repayment of any bonds issued under this Section and to pay costs incurred in the issuance or administration of the bonds. Any pledge made to secure the bonds shall be valid and binding from the time the pledge is made. The revenues pledged and thereafter received by the government of Guam or by any trustee, depository or custodian shall be deposited in a separate account and shall be immediately subject

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to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the government of Guam or such trustee, depository or custodian, irrespective of whether the parties have notice thereof. The indenture or agreement by which such pledge is created need not be recorded. All such taxes, fees and penalties, to the extent so pledged, are hereby continuously appropriated for such purpose. The bonds shall not be, and shall state on their face that they are not, general obligations of the government of Guam.

(e) Waiver of Immunity. Notwithstanding any substantive or procedural provision of Chapter 6 of Title 5 of the Guam Code Annotated the government of Guam waives immunity from any suit or action in contract on the bonds, but does not waive sovereign immunity as to the personal liability of elected officials and employees of the government of Guam.

(f) Form of Bonds; Covenants; Appointment of Fiduciaries. The technical form and language of the bonds, including provisions for execution, exchange, transfer, registration, paying agency, lost or mutilated bonds, negotiability, cancellation and other terms or conditions not inconsistent with this Section, including covenants relating to the maintenance of revenues, shall be as specified in the indenture approved by the Governor, authorizing the issuance of the bonds. The indenture may appoint one or more trustees or other fiduciaries authorized to receive and hold in trust the proceeds of the bonds and revenues relating thereto, to protect the rights of bondholders and to perform such other duties as may be specified in the indenture. The Governor is also authorized to execute, on behalf of the government of Guam, any appropriate agreements, certificates or other instruments relating to the bonds, the sale of the bonds and payment of the bonds being refunded.

(g) Authorization for Credit Enhancement. The Governor is authorized to enter into such contracts or agreements with such banks, insurance companies or other financial institutions as he determines are necessary or desirable to improve the security and marketability of the bonds issued under this Section. Such contracts or agreements may contain an obligation to reimburse,

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with interest, any such banks, insurance companies or other financial institutions for advances used to pay principal or interest on the bonds. Any such reimbursement obligation shall be payable solely from, and may be secured by a pledge of, the revenues described in Subsection (d) of this Section.

(h) Use of Proceeds from the Sale of the Bonds. Proceeds from the sale of the bonds shall be used solely to refund all or a portion of the government of Guam Limited Obligation Highway Bonds, 1985 Series A, to implement the Capital Improvement Highway Projects enumerated in Subsection (j) of this Section, and to pay expenses relating to the authorization, sale and issuance of the bonds and the payment of the bonds being refunded, including, without limitation, printing costs, costs of reproducing documents, bond insurance premiums, underwriting, legal and accounting fees and charges, fees paid to banks or other financial institutions providing credit enhancement, costs of credit ratings, fees and charges for execution, transportation and safekeeping of bonds, escrow agent fees and other costs, charges and fees in connection with the issuance, sale and delivery of the bonds and the payment of the bonds being refunded.

(i) No Personal Liability except for failure to perform ministerial duty. No employee or elected official of the government of Guam shall be individually or personally liable for the payment of any amounts due on any bonds issued under this Section, or for any other liability arising in connection with the bonds; provided, however, that nothing in this Section shall relieve any employee or elected official from the performance of any ministerial duty required by law.

(j) The proceeds shall be expended for the following highway capital improvement projects:

Project Cost

(1) Reconstruction of Route 1 from Polaris Point Intersection to Route 2A (Commissary Junction near Naval Station)

$ 6.0 Million

(2) Reconstruction of Route 2A from $ 4.0 Million

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Commissary Junction to Namo River in
Agat

(3) Design and Reconstruction of three (3) land highway including sidewalks on Route 30 (Camp Watkins Road) from its intersection with Route 1 (Marine Drive) to Guam Memorial Hospital including Farenholt Avenue and land acquisition required for the project

(4) Design and Construction of Harmon Access Road including Land Acquisition (Road from Harmon Strip connecting to Route 16 at the Harmon Loop Intersection)

(5) Land Acquisition for the Agat Umatac Project and for unacquired land on Route 1, land acquisition of unacquired Route 6 property, land acquisition Macheche Road, Bello Road, and Alegeta St.

(6) Resurfacing of approximately 5 miles of Route 4 through Merizo including spot repair, minor drainage improvements and safety treatments as needed

(7) Design and construction of San Ramon Hill roadway network encompassing Route 7, Senator Gibson Road, and Esperanza Street, including installation of underground drainage with sidewalks, spot repair as necessary, widening and installation of anti-skid wearing course

(8) A sidewalk 6 feet in width on the South side of San Vitores Road from John F. Kennedy High School to the

$10.0 Million

$ 3.0 Million

$ 4.0 Million

$ 3.0 Million

$ 2.0 Million

$ 0.5 Million

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traffic circle

(9) Planning, design and initial construction of bike/jogging paths island wide

(10) The unused and unencumbered bond proceed balance; to the extent of any bond proceeds not required and unexpended for the projects listed in Items (1) through (9) of this Subsection (j); and the interest earned upon or any profits derived from the sale of bond investments cumulatively deposited and made a part of the Capital Projects Fund of the Territorial Highway Fund (aka Guam Highway Fund) of which the government of Guam is authorized to use and expend by legislative appropriation for capital improvement road and infrastructure projects.

$ 1.0 Million

GRAND TOTAL $33.5 Million

All segments of the road system listed above shall be designed to include an adjacent paved path for pedestrians, bikes and joggers and a paved shoulder to allow for emergency stops by motor vehicles. When limited by space, the design may include a paved shoulder for combined use by pedestrians, bikes and joggers and for emergency stops by motor vehicles.

(k) Village Streets Fund. There is hereby created, separate and apart from other funds of the government of Guam, a fund known as the Village Streets Fund (‘VSF’).

(1) The VSF shall be used exclusively for the purposes of payment to vendors for village road planning, design, construction, reconstruction, improvement, repair and maintenance services, supplies and equipment to be used for road repair and maintenance, the acquisition of rights of way, or to service debt payments of revenue bonds which may be issued to fund the construction, repair and maintenance of

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secondary and tertiary roads. All roads defined as ‘major arterial’, ‘minor arterial’ and ‘major collector’, as defined in the Highway System Classification Map of Guam, shall continue to be maintained by the Department of Public Works and are excluded from the proceeds of the VSF.

(2) Funds deposited into the VSF shall be subject to Legislative appropriation prior to expenditures from such fund and shall not be subject to any transfer authority.

SOURCE: Added by P.L. 19-002:1 (Apr. 20, 1987) as GC § 6128. Codified by Compiler as GC § 6130. Recodified by Compiler as 5 Guam Code Ann. § 1504. Entire section repealed and reenacted by P.L. 20-014:3 (June 8,
1989) and P.L. 21-110:1 (June 1, 1992). Subsection (k) added by P.L. 23-
128:25 (Dec. 12, 1996); repealed/reenacted by P.L. 25-164:III:20(b) (Sept.
26, 2000); amended by P.L. 26-077:12 and 13 (Mar. 24, 2002); amended by P.L. 28-068:IV:24 (Sept. 30, 2005). Item (j)(10) added by P.L. 28-
068:II:IV:1k (Sept. 30, 2005).

2017 NOTE: Subitem designation(s) deleted/added pursuant to authority granted by 1 Guam Code Ann. § 1606.