Pledge by the Government of Guam

The government of Guam is fully committed to ensuring that the Authority has the ability to implement the capital improvements authorized to be financed by this legislation. The government also is fully committed to ensuring that bondholders are protected to ensure full and timely repayments of their bonds. The government of Guam hereby pledges that while any bonds of the Authority issued under this Article remain outstanding and not fully performed or discharged:

(a)to maintain the rights, powers and duties of the Board and the Guam Public Utilities Commission, or their respective successors in accordance with law, to fulfill the terms of any agreements made with bondholders in accordance with this Article;

(b)to maintain the rights and remedies of bondholders provided in this Article and any indenture;

(c)to protect the exclusive right of the Authority to operate or maintain within Guam any system operated by the government or its designees by preventing the acquisition, operation, maintenance or permitting of any instrumentality of the Government or any other public or private agency, entity or person to operate a separate and competitive system; and

(d)not to transfer any additional non-system operating responsibilities or other unfunded mandates to the Authority without providing for the payment of the costs of such additional responsibilities, with the exception of annual supplemental annuity and COLA contributions paid by the Authority on behalf of retired COL1312018 CH. 10 PORT AUTHORITY OF GUAM employees of the Authority (or its lawful predecessors) as may be required by the laws of Guam; and with the exception that the Authority shall collaborate fully, including, but not limited to, with the Guam Customs and Quarantine Agency and other local law enforcement and regulatory agencies to facilitate the inspection and prevention of illegal entry into Guam of potentially unlawful immigrants or items or invasive species, by or through any works, property, and facilities owned, operated, or leased by the Authority, and to facilitate the protection of coral, wildlife and biodiversity in Apra Harbor.