Authorization of Indebtedness through GEDA

The Guam Economic Development Authority

(GEDA)may obtain funds through the issuance of bonds or other obligations on behalf of the Authority.

(a)Bonds or Notes. Accordingly, the Authority, through GEDA, with the approval of I Maga’hågan/Maga’låhen Guåhan and I Liheslaturan Guåhan is authorized to incur indebtedness, and to issue bonds or notes therefor, secured by a pledge of all or any portion of the revenues of the Authority, to establish and facilitate the Solid Waste Management Plan, and collection, transportation, storage, recycling, processing or disposal of solid waste, which shall include sanitary landfills and resource recover facilities.

(b)Subordinated Indebtedness. In addition, the Authority, acting through GEDA, may incur indebtedness for any other lawful purpose of the Authority, provided that such indebtedness shall have a term not exceeding fifty

(50)years and shall be subordinate to any contractual obligation of the Authority to the holders of any indebtedness issued pursuant to Subsection

(a)of this Section. CH. 51A GUAM SOLID WASTE AUTHORITY

(c)Short Term Borrowing. Pursuant to GEDA, the Authority may incur indebtedness with the approval of I Maga’håga/Maga’låhi for any lawful purpose for a term not exceeding five

(5)years; provided, that such indebtedness shall be subject and subordinate to any contractual obligation of the Authority to the holders of any bonds issued pursuant to Subsections

(a)or

(b)of this Section. The principal of and interest of any such short term borrowing may be repaid from revenues, or if incurred for a purpose for which bonds may be issued, from revenues or from the proceeds of sale of bonds.

(d)Character of Indebtedness. All indebtedness incurred by the Authority pursuant to this Article shall be repayable solely from monies of the Authority available therefor, including revenues, and shall not be deemed to be public indebtedness of Guam as that term is used in Section 11 of the Organic Act.

(e)Waiver of Immunity. Notwithstanding any substantive or procedural provision of Chapter 6, Title 5, Guam Code Annotated, the Authority shall not be entitled to immunity from any suit or action in contract on the indebtedness authorized by this Article.