§39-60  Covenants in resolution orcertificate authorizing issuance of revenue bonds.  Any resolution orcertificate authorizing the issuance of revenue bonds pursuant to this part maycontain covenants as to:

(1)  The purpose or purposes to which the proceeds ofsale of the revenue bonds shall be applied and the use and disposition thereof;

(2)  The use and disposition of the revenue of theundertaking, the Hawaii hurricane relief fund, or the loan program for whichthe revenue bonds are to be issued, or the user taxes derived therefrom, orboth revenue and user taxes, to the extent pledged to the payment of therevenue bonds, including the priority of payments from the revenue and thecreation and maintenance of reserves and the investment thereof;

(3)  The issuance of other or additional revenue bondspayable from the revenue of the loan program, the Hawaii hurricane relief fund,or of the undertaking, or the user taxes derived therefrom, or both revenue anduser taxes, to the extent pledged to the payment of the revenue bonds;

(4)  The operation, maintenance, and repair of theundertaking or the administration, operation, and maintenance of the loanprogram, or the Hawaii hurricane relief fund;

(5)  The insurance to be carried on an undertaking oron the security for the Hawaii hurricane relief fund, or a loan program and theuse and disposition of insurance proceeds, the insurance policies being by thissection authorized to be carried, and no undertaking shall have recourse to thestate insurance fund for the repair or replacement of any property in theundertaking, or for payment of claims under chapter 386 (relating to workers'compensation);

(6)  Books of account and the inspection and auditthereof; and

(7)  The terms and conditions upon which the holdersof the revenue bonds or any proportion of them or any trustee therefor shall beentitled to the appointment of a receiver by any court of competentjurisdiction, which court shall have jurisdiction in the proceedings, and whichreceiver may enter and take possession of the undertaking, operate, maintain,and repair the same, enforce or foreclose loans made under a loan program,impose and prescribe rates, rentals, fees, or charges, collect, receive, andapply all revenue, and receive and apply all user taxes, thereafter arisingtherefrom in the same manner and to the same extent as the department itselfmight do;

provided that all covenants shall be subject toreview by the governor; and provided further that the provisions of thissection with respect to user taxes shall be applicable only if the legislaturein the specific act or acts authorizing the issuance of the revenue bonds hasprovided that the revenue bonds may be paid from and secured by the user taxesderived from an undertaking.

The provisions of this part and any resolutionor certificate shall be a contract with the holder or holders of the revenuebonds.  The duties of the department, its governing body and department head,pursuant to this part, and any resolution or certificate shall be enforceableby any bondholder, by mandamus or other appropriate suit, action, or proceedingin any court of competent jurisdiction. [L 1988, c 28, pt of §3; am L 1996, c307, §5]