Bonds Shall Be Secured by Revenues of System

(a)All bonds authorized by this Article shall be secured by a statutory lien on revenues of the system.

(1)This lien shall arise automatically without the need for any action or authorization by I Maga’låhen Guåhan, the government of Guam, the Authority or any other person or entity.

(2)Such lien shall be valid and binding from the time bonds are issued.

(3)The revenues of the system shall immediately be subject to such lien, and the lien shall automatically attach to the revenues of COL1312018 CH. 10 PORT AUTHORITY OF GUAM the system and be effective, binding, and enforceable against the Authority, its successors, assignees, and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act.

(4)Revenues of the system that are not required to make payments on the bonds shall automatically, and without the need for any further action, be released from such lien and shall be available for appropriation for any other lawful purpose of the government.

(5)The statutory lien described in this Section shall not be subject to Division 9 of Title 13, Guam Code Annotated, or any successor statute.

(b)In addition to the statutory lien provided for in this Section, 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 a portion of the revenues of the system.

(1)Any such pledge and lien shall be valid and binding from the time the pledge is made without any further act.

(2)The revenues pledged and thereafter received by the Authority or by any trustee, depository or custodian shall be deposited in the Jose D. Leon Guerrero Commercial Port Revenue Fund and shall be immediately subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Authority or such trustee, depository or custodian, irrespective of whether the parties have notice thereof.

(3)The pledge shall not be subject to Division 9 of Title 13, Guam Code Annotated, or any successor statute.

(4)The indenture by which such pledge is created need not be recorded.