§39-60  Covenants in resolution or
certificate authorizing issuance of revenue bonds.  Any resolution or
certificate authorizing the issuance of revenue bonds pursuant to this part may
contain covenants as to:



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



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



(3)  The issuance of other or additional revenue bonds
payable 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 and
user taxes, to the extent pledged to the payment of the revenue bonds;



(4)  The operation, maintenance, and repair of the
undertaking or the administration, operation, and maintenance of the loan
program, or the Hawaii hurricane relief fund;



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



(6)  Books of account and the inspection and audit
thereof; and



(7)  The terms and conditions upon which the holders
of the revenue bonds or any proportion of them or any trustee therefor shall be
entitled to the appointment of a receiver by any court of competent
jurisdiction, which court shall have jurisdiction in the proceedings, and which
receiver 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, and
apply all revenue, and receive and apply all user taxes, thereafter arising
therefrom in the same manner and to the same extent as the department itself
might do;



provided that all covenants shall be subject to
review by the governor; and provided further that the provisions of this
section with respect to user taxes shall be applicable only if the legislature
in the specific act or acts authorizing the issuance of the revenue bonds has
provided that the revenue bonds may be paid from and secured by the user taxes
derived from an undertaking.



The provisions of this part and any resolution
or certificate shall be a contract with the holder or holders of the revenue
bonds.  The duties of the department, its governing body and department head,
pursuant to this part, and any resolution or certificate shall be enforceable
by any bondholder, by mandamus or other appropriate suit, action, or proceeding
in any court of competent jurisdiction. [L 1988, c 28, pt of §3; am L 1996, c
307, §5]