§39A‑119  Powers with respect to andsecurity for special purpose revenue bonds.  In order to secure the paymentof any of the special purpose revenue bonds issued pursuant to this part, andinterest thereon, or in connection with such bonds, the department shall havethe power as to such bonds:

(1)  To pledge all or any part of the revenues derivedby the department from the project agreement to the punctual payment of specialpurpose revenue bonds issued with respect to the project financed from proceedsthereof, and interest thereon, and to covenant against thereafter pledging anysuch revenues or receipts to any other bonds or any other obligations of thedepartment for any other obligations of the department for any other purpose,except as otherwise stated in the law providing for the issuance of additionalspecial purpose revenue bonds to be equally and ratably secured by a lien uponsuch revenues.

(2)  To pledge and assign the interest and right ofthe department under the project agreement and other agreements related theretoand the rights, duties, and obligations of the department thereunder, includingthe right to receive revenues thereunder.

(3)  To covenant as to the use and disposition of theproceeds from the sale of such bonds.

(4)  To covenant to set aside or pay over reserves andsinking funds for such bonds and as to the disposition thereof.

(5)  To covenant and prescribe as to what happeningsor occurrences shall constitute "events of default" and the terms andconditions upon which any or all of such bonds shall become or may be declareddue before maturity and as to the terms and conditions upon which suchdeclaration and its consequences may be waived.

(6)  To covenant as to the rights, liabilities,powers, and duties arising upon the breach by it of any covenant, condition, orobligation.

(7)  To designate a national or state bank or trustcompany within or without the State, incorporated in the United States, toserve as trustee for the holders of the special purpose revenue bonds and toenter into a trust indenture or trust agreement or indenture of mortgage withsuch trustee.  The trustee may be authorized by the department to receive andreceipt for, hold, and administer the proceeds of the special purpose revenuebonds issued for the project and to apply the proceeds to the purposes forwhich such bonds are issued, or to receive and receipt for, hold, andadminister the revenues derived by the department under the project agreementand to apply such revenues to the payment of the principal and interest on suchbonds, or both, and any excess revenues to the payment of expenses incurred bythe State in administering such bonds or in carrying out the projectagreement.  In the event that such trustee shall be appointed, any trust indentureor trust agreement or indenture of mortgage entered into by the department withthe trustee may contain whatever covenants and provisions as may be necessaryor convenient or desirable in order to secure such bonds.  The department maypledge and assign to the trustee the interest of the department under theproject agreement and other agreements related thereto and the rights, duties,and obligations of the department thereunder, including the right to receiverevenues thereunder.  The department may appoint the trustee to serve as fiscalagent for the payment of the principal and interest, and for the purchase,registration, transfer, exchange, and redemption of the special purpose revenuebonds, and may authorize and empower the trustee to perform such functions withrespect to such payment, purchase, registration, transfer, exchange, andredemption, as the department may deem necessary, advisable, or expedient,including without limitation the holding of the special purpose revenue bondsand coupons which have been paid and the supervision of the destruction thereofin accordance with law.

(8)  To execute all instruments necessary orconvenient in the exercise of the powers herein granted or in the performanceof its covenants and duties.

(9)  To make such covenants and do any and all actsand things as may be necessary or convenient or desirable in order to securesuch bonds, notwithstanding that such covenants, acts, or things may not beenumerated herein; it being the purpose thereof to give the department power todo all things in the issuance of such bonds and for their security that may beconsistent with the Constitution of the State of Hawaii. [L 1981, c 121, pt of§2]