§174-21  Repayment of certain stateadvances.  Whenever under legislative authorization, past, present orfuture, general obligation bonds of the State are issued or the proceeds ofgeneral obligation bonds of the State are used, by way of advancement, for theestablishment and construction of any specific project under the jurisdictionof the board of land and natural resources in its water program, the board mayrepay the same to the director of finance, upon the expiration of ten yearsfrom the time of initial service to the project, which ten-year term shall bethe development period, as repayment on account of the advancement.  Suchpayments shall be made over the period of the next succeeding forty years afterthe termination of the development period, the total of which payments shall besufficient to reimburse the State for redemption of the bonds together withinterest paid by the State in respect of the same.

The foregoing method of repayment of advancesshall be effective for each phase of any multi-phase project, the amortizationperiod for the advancement commencing ten years from the time that facilitiesto provide service for each new project phase are put into operation.

In the event that changing use of the land in aproject substantially increases revenues, or other circumstances make itreasonably possible or desirable for the board to accelerate the amortizationof advances it shall be permitted to do so. [L 1961, c 166, pt of §3; am L1963, c 114, §1; Supp, §86-20; HRS §174-21; am L 1987, c 306, §14]