PART VII. [OLD] GENERAL PROVISIONS

 

§39-151  REPEALED.  L 1988, c 28, §2.

 

[PARTVII.  GENERAL PROVISIONS]

 

[§39-151]  Compound interest bond reservefund.  (a)  There is hereby established the Hawaii compound interest bondreserve fund, as a trust fund in the state treasury for the benefit of theState, to be held and administered by the department of budget and finance. The director, from time to time, may transfer a portion of general excise taxrevenues collected pursuant to section 237-31 to the credit of the compoundinterest bond reserve fund, up to but not in excess of $5,000,000 during anyfiscal year.  Not fewer than thirty days before the convening of each regularsession of the legislature, the director shall submit to the legislature a reportof all funds transferred to the credit of the compound interest bond reservefund.

(b)  The moneys in the compound interest bondreserve fund shall be held exclusively for the payment of principal of andinterest on compound interest bonds.  The moneys shall be invested in suchamounts and in a manner as will assure the availability to the State of moneysin an amount, together with other moneys available therefor, sufficient to makepayments of principal of and interest on compound interest bonds as the samebecome due.  The director of finance may invest and reinvest moneys depositedin the compound interest bond reserve fund only in a manner that will not causethe interest on any series of compound interest bonds to be includable in grossincome for federal income tax purposes for any reason, including, withoutlimitation, by causing any compound interest bond to be subjected to treatmentas an "arbitrage bond", as defined in section 148(a) of the InternalRevenue Code of 1986, as amended, and applicable regulations. [L 1990, c 163,§2]