Short Term Borrowing

The Board may, by a resolution adopted by a majority of all the members of the Board and approved by I Maga’håga/Maga’låhi, incur indebtedness for any lawful purpose, and such indebtedness shall be repaid within a period not exceeding ten

(10)years as evidenced by contract terms. Any such indebtedness shall be incurred subject and subordinate to any contractual obligation of the Board to the holders of any bonds and the principal thereof and interest thereon may be repaid from the University of Guam’s revenues; or if incurred for a purpose for which bonds may be issued, from the University of Guam’s revenues or from the proceeds of sale of bonds or other debt instrument.