[§39A-289]  Powers with respect to andsecurity for special purpose revenue bonds.  To secure the payment of anyof the special purpose revenue bonds issued pursuant to this part, includinginterest on the bonds, or in connection with the bonds, the department shallhave the power to:

(1)  Pledge all or any part of the revenues derived bythe department from the project agreement to the punctual payment of specialpurpose revenue bonds issued with respect to the project financed or refinancedfrom bond proceeds, including interest on the bonds, and to covenant againstpledging any revenues or receipts to any other bonds or any other obligationsof the department for any other purpose, except as otherwise stated in the lawproviding for the issuance of additional special purpose revenue bonds to beequally and ratably secured by a lien upon the revenues;

(2)  Pledge and assign the interest of the departmentunder the project agreement and other related agreements and the rights,duties, and obligations of the department thereunder, including the right toreceive revenues;

(3)  Covenant as to the use and disposition of theproceeds from the sale of the bonds;

(4)  Covenant to set aside or pay over reserves andsinking funds for the bonds and as to the disposition thereof;

(5)  Covenant and prescribe as to what occurrencesshall constitute "events of default" and the terms and conditionsupon which any or all of the bonds shall become or may be declared due beforematurity and as to the terms and conditions upon which the declaration and itsconsequences may be waived;

(6)  Covenant as to the rights, liabilities, powers,and duties arising upon the breach by the department of any covenant,condition, or obligation;

(7)  Designate a national or state bank or trust companywithin or without the State, incorporated in the United States, to serve astrustee for the holders of the special purpose revenue bonds and to enter intoa trust indenture or trust agreement or indenture of mortgage with thetrustee.  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 the bonds are issued, or to receive and receipt for, hold, and administerthe revenues derived by the department under the project agreement and to applythe revenues to the payment of the principal and interest on the bonds, orboth, and any excess revenues to the payment of expenses incurred by the Statein administering the bonds or in carrying out the project agreement.  If atrustee is appointed, any trust indenture or trust agreement or indenture ofmortgage entered into by the department with the trustee may contain whatevercovenants and provisions as may be necessary, convenient, or desirable tosecure the bonds.  The department may pledge and assign to the trustee theinterest of the department under the project agreement and other relatedagreements as well as the rights, duties, and obligations of the departmentthereunder, including the right to receive revenues thereunder.  The departmentmay appoint the trustee to serve as fiscal agent for the payment of theprincipal and interest and for the purchase, registration, transfer, exchange,and redemption of the special purpose revenue bonds.  The department may alsoauthorize and empower the trustee to perform functions with respect to payment,purchase, registration, transfer, exchange, and redemption as the departmentmay deem necessary, advisable, or expedient, including, without limitation, theholding of the special purpose revenue bonds and coupons that have been paidand the supervision of the destruction of the bonds and coupons according tothe law;

(8)  Execute all instruments necessary or convenientin the exercise of the powers herein granted or in the performance of itscovenants and duties; and

(9)  Make covenants and perform any acts as may benecessary, convenient, or desirable to secure the bonds, although suchcovenants, acts, or items may not be enumerated here.

The department may do all things in the issuance ofthe bonds and for their security that are consistent with the Constitution ofthe State of Hawaii. [L 2006, c 102, pt of §2]