Bonds May be Secured by Section 30 Revenue

(a)If and to the extent determined by I Maga’hågan/Maga’låhen Guåhan, all or any part of the revenues derived by the government of Guam under Section 30 of the Organic Act (Section 30 revenue) may be pledged to secure the payment of any bonds issued pursuant to this Article, subject to any previously created lien on or pledge of such Section 30 revenue and to any parity lien created pursuant to Article 9 of this Chapter.

(b)Any such pledge 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.

(c)The Section 30 revenue pledged and thereafter received by the government of Guam or by any trustee, depository or custodian shall be deposited in accordance with the provisions of the applicable indenture or, if not otherwise provided for in such indenture, in a separate subaccount of the Revenue Account in the Solid Waste Operations Fund. The indenture by which such pledge is created need not be recorded.

(d)All Section 30 revenue so pledged is hereby appropriated for the purpose for which it has been pledged. Pledged Section 30 revenue released from the lien of the indenture or certificate pursuant to which the bonds are issued shall be available for appropriation for any other lawful purpose of the government.

(e)Indebtedness issued by the government pursuant to this Article and that is payable from Section 30 revenue may not be issued in an amount that would cause a violation of the debt limitation provisions of Section 11 of the Organic Act.