[§39A‑319]  Powers with respect to and
security for special purpose revenue bonds.  To secure the payment of any
of the special purpose revenue bonds issued pursuant to this part and interest
thereon, or in connection with the bonds, the department shall have the power:



(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
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 the 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 the bonds;



(4)  To covenant to set aside or pay over reserves and
sinking funds for the 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 the bonds shall become or may be declared
due before maturity and as to the terms and conditions upon which the
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 the 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 the 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 the revenues to the payment of the principal and interest on the
bonds, or both, and any excess revenues to the payment of expenses incurred by
the State in administering the bonds or in carrying out the project agreement. 
If a trustee is 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 to
secure the 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.  The department may also
authorize and empower the trustee to perform these functions with respect to
the 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 that
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; and



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



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