Payments Which May be Made Out of Proceeds of Sale of Bonds

The proceeds of sale of any bonds may be expended for any one

(1)or more of the following purposes, all as provided in the indenture relating to such bonds:

(a)for payment of any costs or expenses of the acquisition, construction or improvement of the system or any part thereof (including any closed landfill or dump) or any costs or expenses incidental thereto, including payment to the United States or any other public body for the portion to be borne by the government of the costs of any work done by the United States or such public body for or jointly or in conjunction with the Department.

(1)Up to Three Million Dollars ($3,000,000) for compensation for the acquisition of private property currently occupied and used as part of the Ordot Dump by an instrumentality or agency of the government of Guam, and as needed for the permanent closure of the Ordot Dump. An appraisal of the private property used for the Ordot Dump must be obtained prior to acquisition thereof.

(b)for payment or reimbursement of any engineering, inspection, legal, consultants’ or paying agents’ fees relating or incidental to:

(1)the acquisition, construction or improvement of the system or any part thereof;

(2)the authorization, issue or sale of bonds; or

(3)professional technical services to prepare the technical specifications for a bid invitation for a Finance, Build, Operate, and Lease Back

(FBOL)to meet the requirements for USEPA compliant municipal solid waste services on Guam, and for the evaluation of bids which have been submitted, and to provide its findings and recommendation to I Maga’håga/Maga’låhi and I Liheslatura within one hundred eighty

(180)days from enactment of the Act.

(c)for payment of any costs or expenses relating to the authorization, issuance or sale of bonds; CH. 51A GUAM SOLID WASTE AUTHORITY

(d)for deposit in any one

(1)or more reserve funds or accounts in lieu of insurance or in any working capital fund or account or contingency fund or account relating to the system;

(e)for payment of interest on bonds during the projected period of acquisition, construction or improvement of the system or any part thereof for the acquisition, construction or improvement of which such bonds have been issued and for a period not to exceed three

(3)years thereafter;

(f)for deposit in any reserve or sinking fund; or

(g)for the payment of any prior bonds or other obligations of the government issued for solid waste management purposes.

(h)For reimbursement of the General Fund or other source of the government of Guam for cash deposits or other payments made by the government of Guam between March 1, 2009 and the date of issuance of these bonds pursuant to the February 13, 2009 Order in the U.S. District Court Case No. 02-00022.