Board to Determine Issuance of Bonds and Incurring of Other Indebtedness; Guam Not

Liable for Indebtedness; Board Only Liable as Provided by Indenture or Contract.

(a)The Board, with the approval of I Maga’håga/Maga’låhi, shall determine the time, form and manner of issuance of bonds and shall issue bonds in the name of the Authority and as its obligations and shall also, subject to the limitations of this Article, determine the time, form and manner of incurring other indebtedness.

(b)No bond issued or sold pursuant to this Article shall be or become a lien, charge or liability against Guam or I Maga’håga/Maga’låhi or against the Authority or the Board or against any property or funds of the Authority or the Board or Guam or I Maga’håga/Maga’låhi, except to the extent of the pledge or revenues or part of revenues, as may be provided by the indenture pursuant to which such bonds are issued and every such bond shall contain a recital on its face stating that neither the payment of the principal or any part thereof, nor of any interest thereon, is a debt, liability or obligation of Guam.

(c)No other indebtedness incurred pursuant to this Article shall be or become a lien, charge or liability against Guam or I Maga’håga/Maga’låhi and each such indebtedness shall be payable only from the fund or source from which it is authorized to be paid as provided in this Article.