§39A‑39  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 or refinanced
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 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, conditions, 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 same 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 hereof 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 1980, c 255, pt of
§2]