§39A‑159  Powers with respect to and
security for special purpose revenue bonds.  In order to secure the payment
of any of the special purpose revenue bonds issued pursuant to this part, and
interest thereon, or in connection with such bonds, the department shall have
the power as to such bonds:



(1)  To pledge all or any part of the revenues derived
by the department from the project agreement to the punctual payment of special
purpose revenue bonds issued with respect to the project financed from proceeds
thereof, and interest thereon, and to covenant against thereafter pledging any
such revenues or receipts to any other bonds or any other obligations of the
department for any other purpose, except as otherwise stated in the law
providing for the issuance of additional special purpose revenue bonds to be
equally and ratably secured by a lien upon such revenues.



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



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



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



(5)  To covenant and prescribe as to what happenings
or occurrences shall constitute "events of default" and the terms and
conditions upon which any or all of such bonds shall become or may be declared
due before maturity and as to the terms and conditions upon which such
declaration 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, or
obligation.



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



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



(9)  To make such covenants and do any and all acts
and things as may be necessary or convenient or desirable in order to secure
such bonds, notwithstanding that such covenants, acts, or things may not be
enumerated herein; it being the purpose thereof to give the department power to
do all things in the issuance of such bonds and for their security that may be
consistent with the Constitution of the State of Hawaii. [L 1981, c 122, pt of
§2]