§39A-256 Issuance of special purpose revenue bonds to finance projects.  In addition to the other powers that it mayotherwise have, the department may issue special purpose revenue bonds tofinance or refinance the costs of facilities of or for project parties or toloan the proceeds of such bonds to assist project parties.  All revenue bondsissued under this part are special purpose revenue bonds, and the provisions ofpart III of chapter 39 shall not apply.  All special purpose revenue bondsshall be issued in the name of the department and not in the name of the State.

Indetermining the cost of any project, the department may also include thefollowing:  financing charges, fees, the expenses of trustees, and the cost ofpaying agents to issue special purpose revenue bonds to fund the project;interest on the bonds and the expenses of the State in connection with thebonds and the project to be financed or refinanced from the proceeds of thebonds accruing or incurred prior to and during the period of construction, notto exceed twelve months thereafter; amounts necessary to establish or increasereserves for the special purpose revenue bonds; the cost of plans,specifications, studies, surveys, and estimates of costs and of revenues; otherexpenses incidental to determining the feasibility or practicability of theproject; administration expenses; the cost of interest incurred by the projectparty with respect to the project prior to the issuance of the special purposerevenue bonds; fees and expenses incurred in connection with the refinancing ofoutstanding obligations; other costs, commissions, and expenses incidental tothe construction, acquisition, reconstruction, renovation, rehabilitation,improvement, betterment, operation, or extension of the project; the financingor refinancing of the project and placing the project in operation; and theissuance of the special purpose revenue bonds, whether incurred prior to orafter the issuance of such bonds.

Thelegislature finds and determines that the exercise of the powers vested in thedepartment by this part constitutes assistance to not-for-profit privatenonsectarian and sectarian elementary schools, secondary schools, colleges, anduniversities serving the general public and that the issuance of specialpurpose revenue bonds to finance or refinance facilities of or for projectparties or to loan the proceeds of the bonds to assist project parties is inthe public interest.  The legislature also finds and determines that theexercise of the powers vested in the department by this part are pursuant toseparate acts of the legislature, each of which shall be enacted in anondiscriminatory manner on the basis of neutral, secular criteria and will notin any manner violate the First Amendment of the Constitution of the UnitedStates or article I, section 4, of the Constitution of the State of Hawaii.[L 2002, c 257, pt of §1; am L 2004, c 10, §1]