Bonds May be Secured by Revenue of the System

(a)An indenture may provide that payment of the bonds and the interest thereon shall be secured by a pledge of and lien upon all or any portion of the revenue of the system, subject to any parity lien created or to be created pursuant to Article 9 of this Chapter.

(1)Any such pledge and lien shall be valid and binding against all parties in accordance with its terms and have priority against all parties in accordance with its terms from the time the pledge is made, and property so pledged shall immediately be subject to the lien of the pledge without the need for physical delivery, recordation filing or other further act. The pledge shall not be subject to Division 9 of Title 13 of the Guam Code Annotated or any successor statute.

(2)The revenue of the system pledged and thereafter received by the government or by any trustee, depository or custodian shall be deposited in a separate subaccount of the Revenue Account in the Solid Waste Operations Fund.

(3)The indenture by which such pledge is created need not be recorded. All such pledged revenue of the system is hereby appropriated for the purposes of paying the principal and interest on the bonds issued pursuant to this Article.

(b)Pledged revenue released from the lien of the indenture or certificate pursuant to which the bonds are issued shall be available for any other lawful purpose. If the bonds are secured solely by such a pledge of and lien upon all or a portion of the revenue of the system, then no such bond and no other obligation undertaken by the government under any indenture, lease or other instrument relating to such bond shall be or become a lien, charge or liability against the government of Guam or against the Department or against any property or funds of the government of Guam or the Department, except to the extent of the pledge of revenue of the system provided by such indenture, lease or other instrument.