Capital Improvement Highway Debt

(a)The Governor of Guam is authorized to create a debt or debts of the government of Guam in aggregate principal amount not to exceed Thirty-five Million Dollars for the purposes of COL4/6/2022 CH. 22 GENERAL FISCAL POLICIES AND CONTROLS implementing capital improvement highway projects; provided, however, that the terms and conditions of the debt or debts shall be approved by the Legislature by Resolution. The sentence contained in 12 GCA § 2103(k) stating: The failure of the Legislature to adopt a resolution rejecting the terms and conditions of the issuance of the bonds for forty-five

(45)calendar days of the date of its submission to the Legislative Secretary shall be concurrence to the issuance of the bonds, shall not apply to the provisions of this Section and § 22409 of this Article.

(b)Such debt or debts may be created by a loan or other agreement executed by the Governor containing such terms as are consistent with this Section and § 22409 of this Article or may be created by the issuance of bonds in one or more series sold at such terms as are consistent with this Section and § 22409 of this Article.

(c)Any bonds authorized by this Section shall be issued pursuant to an indenture executed by the Governor on behalf of the government of Guam, which indenture shall specify the forms, amounts, maturity dates, interest rates, interest payment dates, denominations, places of payment, registration provisions, rights of exchange, redemption dates and default provisions for such bonds and shall otherwise provide for the use of proceeds of such bonds and the security for such bonds, including the pledge authorized by § 22409 of this Article, in a manner not inconsistent with this Section and § 22409 of this Article.

(d)Any debt or debts authorized by this Section shall constitute the valid and legally binding limited obligation of the government of Guam payable from and secured by a pledge of the revenues described in § 22409 of this Article, as amended. The validity of any such debt or debts shall not be affected by the validity or regularity of any proceedings for the implementation of capital improvement highway projects funded by the debt or debts.