Pledge of Revenues

(a)Rental payments under the lease and the lease-back may be secured by a pledge or other reservation of revenues collected by the government of Guam from the following: COL2232015 CHAPTER 58E THE FINANCE, DESIGN, RENOVATION, REHABILITATION, CONSTRUCTION OR MAINTENANCE OF PUBLIC SCHOOLS

(1)Taxes collected under the Business Privilege Tax Law (namely, 11 GCA Chapter 25, excluding the alcoholic beverage taxes, liquid fuel taxes, automotive surcharges, tobacco taxes and real property taxes). The business privilege tax pledged or reserved shall only apply to the unpledged portion of the business privilege tax (currently one percentage point of the current four percent business privilege tax rate) so as not to violate the government’s covenants to bondholders of the Series A, Series B and Series C Limited Obligation bonds authorized through Public Law 31-76, Public Law 31-196 and Public Law 31-276. The sum of approximately One Million Eight Hundred Eighty-Two Thousand Eighty-Two Dollars ($1,882,082) shall fund interest in Fiscal Year 2015, and the sum of approximately Two Million Five Hundred Sixty Four Thousand One Hundred Sixty-Five Dollars ($2,564,165) shall fund interest payment annually for Fiscal Years 2016 through 2018.

(2)The sum of One Million Two Hundred Thousand Dollars ($1,200,000) from the revenues received pursuant to § 22425(q)(5) of Article 4, Chapter 22 Division 2, Title 5, Guam Code Annotated will be available annually beginning in Fiscal Year 2016; and

(3)The sum of Four Million Eight Hundred Thousand Dollars ($4,800,000) from the maturity of Business Privilege Tax Bond Series 2013C shall be available annually beginning in Fiscal Year 2019.

(b)Revenues pledged or reserved shall be remitted in the following manner:

(1)The Business Privilege Tax shall only pay for the interest payments of the lease and the lease-back pending the maturity of the Business Privilege Tax Bond Series 2013C in Fiscal Year 2019, and said interest payments shall cease.

(2)Revenues received pursuant to § 22425 (q)(5) of Article 4, Chapter 22 Division 2, Title 5, Guam Code Annotated, upon availability; and

(3)Upon the maturity of the Business Privilege Tax Bond Series 2013C. COL2232015 CHAPTER 58E THE FINANCE, DESIGN, RENOVATION, REHABILITATION, CONSTRUCTION OR MAINTENANCE OF PUBLIC SCHOOLS Any amounts pledged as provided in this Section are hereby continuously appropriated for the purpose of making lease-back payments, but any amounts only reserved as provided in this Section, and not pledged, shall be subject to annual appropriation for the purpose of making lease-back payments. The revenues pledged or reserved and thereafter received by the government of Guam or by any trustee, depository or custodian shall be deposited in a separate account and shall be immediately subject to such reservation or the lien of such pledge without any physical delivery thereof or further act, and such reservation or the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the government of Guam or such trustee, depository or custodian, irrespective of whether the parties have notice thereof. The instrument by which such pledge or reservation is created need not be recorded.