Issuance of Bonds, Terms and Conditions Generally

(a)The Authority shall have the power to issue bonds, from time to time, in its discretion, for any of its corporate purposes. The Authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it. The Authority may issue such types of bonds as it may determine, including (without limiting the generality of the foregoing) bonds on which the principal and interest are payable

(1)exclusively from the income and revenues of a project financed with the proceeds of such bonds;

(2)exclusively from the income and revenues of certain designated projects, whether or not they are financed in whole or in part with the proceeds of such bonds; or

(3)from its revenues generally.

(b)Any such bonds may be additionally secured by a pledge of any loan, grant or contribution, or parts thereof, from the Federal Government or other sources, or a pledge of any income or revenue of the Authority, or a mortgage of any project, or part thereof, or other property of the Authority.

(c)None of the proceeds of bonds issued for urban renewal projects, and no proceeds or revenues from any urban renewal project shall be used to pay the bonds or costs of, or to make contributions or loans to any housing project, nor shall the proceeds of bonds issued for housing projects, nor proceeds or revenues from any housing project be used to pay the bonds or costs of, or to make contributions or loans to any urban COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY renewal project, unless specifically authorized by law, or permitted by the Federal Government in the instance of federally-aided projects.

(d)Neither the Commissioners of the Authority nor any person executing the bonds shall be personally liable on the bonds by reason of the issuance of the bonds.

(e)The bonds and other obligations of the Authority shall not be a debt of the territory of Guam and in no event shall such bonds or obligations be payable out of any funds or properties other than those of the Authority, and they shall not constitute an indebtedness within the meaning of any debt limitation or restriction.

(f)Bonds of the Authority are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, are exempt from all taxes. The provisions of this Article exempting from taxation the Authority, its property, and its bonds and interest thereon and income therefrom, shall be considered part of the security for the repayment of the bonds and shall constitute, by virtue of this Article and without necessity of being restated in the bonds, a contract between the bondholders, and each and everyone of them, including all transferees of said bonds from time to time, on the one hand, and the Authority and Guam on the other.