[§39A‑319]  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 and interestthereon, or in connection with the bonds, the department shall have the power:

(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 anyrevenues or receipts to any other bonds or any other obligations of thedepartment 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)  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 the bonds;

(4)  To covenant to set aside or pay over reserves andsinking funds for the 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 the bonds shall become or may be declareddue before maturity and as to the terms and conditions upon which thedeclaration 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, to serve as trustee for the holders of the special purpose revenue bonds andto enter into a trust indenture or trust agreement or indenture of mortgagewith the trustee.  The trustee may be authorized by the department to receiveand receipt for, hold, and administer the proceeds of the special purposerevenue bonds issued for the project and to apply the proceeds to the purposesfor which the bonds are issued, or to receive and receipt for, hold, andadminister the revenues derived by the department under the project agreementand to apply the revenues to the payment of the principal and interest on thebonds, or both, and any excess revenues to the payment of expenses incurred bythe State in administering the bonds or in carrying out the project agreement. If a trustee is appointed, any trust indenture or trust agreement or indentureof mortgage entered into by the department with the trustee may contain whatevercovenants and provisions as may be necessary or 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 agreementsrelated thereto and 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 these functions with respect tothe payment, purchase, registration, transfer, exchange, and redemption, as thedepartment may deem necessary, advisable, or expedient, including withoutlimitation the holding of the special purpose revenue bonds and coupons thathave been paid and the supervision of the destruction thereof in accordancewith law;

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

(9)  To make covenants and do any and all acts as maybe necessary, convenient, or desirable to secure the bonds, notwithstandingthat the covenants, acts, or items may not be enumerated herein.

The department shall have the power to do allthings in the issuance of the bonds and for their security that are consistentwith the Constitution of the State of Hawaii. [L 2006, c 148, pt of §1]