Credit Enhancement

I Maga’hågan/Maga’låhen Guåhan is hereby authorized to enter into such contracts or agreements, on behalf of the Department, with such banks, insurance companies or other financial institutions as it determines are necessary or desirable to improve the security and marketability of the lease-back obligations; provided that said contracts or agreements to improve the security and marketability of the lease-back obligations shall not obligate, appropriate, or otherwise provide additional funding for the improvement to the security or marketability without legislative approval. Such contracts or agreements may contain an obligation to reimburse, with interest, any such banks, insurance companies or other financial institutions for advances used to pay lease-back obligations and to indemnify any such banks, insurance companies or other financial institutions for costs and expenses incurred in connection with any such advance; provided, that any obligation of the Department under any reimbursement agreement shall be payable solely from pledged revenue. Any reimbursement agreement may include a provision that the obligations of the Department under the agreement shall be secured by all or by part of pledged revenue; provided that, at the time of execution and delivery of each such agreement, any such provision shall be in compliance with and shall not violate or breach any provision of any indenture, lease or other instrument to which the government or the Department is a party.