§48E-9  Powers with respect to and securityfor special purpose revenue bonds.  In order to secure the payment of anyof the special purpose revenue bonds issued pursuant to this chapter, andinterest thereon, or in connection with such bonds, a county shall have thepower as to such bonds:

(1)  To pledge all or any part of the receipts derivedby the county from the project agreement to the punctual payment of specialpurpose revenue bonds issued for the pollution control project financed fromthe proceeds thereof, and interest thereon, and to covenant against thereafterpledging any such receipts to any other bonds or any other obligations of thecounty for any other purpose, except as otherwise provided in the ordinanceproviding for the issuance of additional special purpose revenue bonds to beequally and ratably secured by a lien upon such revenues;

(2)  To pledge and assign the project agreement andother agreements related thereto rights, duties, and obligations of the countythereunder, including the right to receive revenues thereunder;

(3)  To covenant as to the use and disposition of theproceeds from the sale of such bonds;

(4)  To covenant to set aside or pay over reserves andsinking funds for such bonds and as to the disposition thereof;

(5)  To covenant and prescribe as to what happeningsor occurrences shall constitute "events of default" and the terms andconditions upon which any or all of such bonds shall become or may be declareddue before maturity and as to the terms and conditions upon which suchdeclaration 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)  If deemed necessary or advisable by the directorof finance, to designate a national or state bank or trust company within orwithout the State to serve as trustee for the holders of the special purposerevenue bonds and to enter into a trust indenture or trust agreement orindenture of mortgage with such trustee.  The trustee may be authorized toreceive and receipt for, hold, and administer the proceeds of the specialpurpose revenue bonds issued for the pollution control project and to apply theproceeds to the purposes for which such bonds are issued, or to receive andreceipt for, hold, and administer the revenues and other receipts derived bythe county under the project agreement and to apply such revenues and receiptsto the payment of the principal of, or interest on such special purpose revenuebonds, or both.  If a trustee is appointed, any trust indenture, trustagreement, or indenture of mortgage entered into with the trustee may containany covenants and provisions as may be deemed necessary, convenient, ordesirable by the director in order to secure such bonds.  The county may pledgeand assign to the trustee the project agreement and other agreements relatedthereto and the rights of the county thereunder, including the rights torevenues and receipts thereunder.  If the director of finance appoints atrustee for the holders of the special purpose revenue bonds, the director mayelect not to serve as fiscal agent for the payment of the principal andinterest, and for the purchase, registration, transfer, exchange, andredemption, of the special purpose revenue bonds, or may elect to limit thefunctions the director performs as such fiscal agent.  The director may appointthe trustee to serve as the fiscal agent, and may authorize and empower thetrustee to perform such functions with respect to such payment, purchase,registration, transfer, exchange, and redemption, as the director deemsnecessary, advisable, or expedient, including, without limitation, the holdingof the special purpose revenue bonds and coupons which have been paid and the supervisionand conduction or the destruction thereof in accordance with law;

(8)  If a trustee is not appointed pursuant toparagraph (7), to hold such proceeds or revenues and receipts, as the case maybe, in a separate account in the treasury of the county, to be applied solelyto the carrying out of the ordinance, trust indenture, trust agreement, orindenture of mortgage, if any, authorizing or securing such special purposerevenue bonds;

(9)  To execute all instruments necessary orconvenient in the exercise of the powers granted by this chapter or in theperformance of its covenants and duties; and

(10)  To make such covenants and do any and all suchacts and things as may be necessary or convenient or desirable in order tosecure such bonds, or in the discretion of the governing body of the county,which tend to make such bonds more marketable, notwithstanding that suchcovenants, acts or things may not be enumerated in this chapter; it being thepurpose hereof to give each county the power to do all things in the issuanceof such bonds and for their security that may be consistent with theConstitution of the State of Hawaii. [L 1983, c 237, pt of §2]