[§206E-184]  Special facility lease.  (a) In addition to the conditions and terms set forth in this part, any specialfacility lease entered into by the authority shall at least contain provisionsobligating the other person to the special facility lease:

(1)  To pay to the authority during the initial termof the special facility lease, whether the special facility is capable of beingused or occupied or is being used or occupied by the other person, a rental orrentals at the time or times and in the amount or amounts that will besufficient:

(A)  To pay the principal and interest on allspecial facility revenue bonds issued for the special facility;

(B)  To establish or maintain any reserves forthese payments; and

(C)  To pay all fees and expenses of thetrustees, paying agents, transfer agents, and other fiscal agents for thespecial facility revenue bonds issued for the special facility;

(2)  To pay to the authority:

(A)  A ground rental, as determined by theauthority, if the land on which the special facility is located was notacquired from the proceeds of the special facility revenue bonds; or

(B)  A properly allocable share of theadministrative costs of the authority in carrying out the special facilitylease and administering the special facility revenue bonds issued for thespecial facility, if the land was acquired from the proceeds of the specialfacility revenue bonds;

(3)  To either operate, maintain, and repair thespecial facility and pay the costs thereof or to pay to the authority all costsof operation, maintenance, and repair of the special facility;

(4)  To:

(A)  Insure, or cause to be insured, thespecial facility under builder's risk insurance (or similar insurance) in theamount of the cost of construction of the special facility to be financed fromthe proceeds of the special facility revenue bonds;

(B)  Procure and maintain, or cause to beprocured or maintained, to the extent commercially available, a comprehensiveinsurance policy providing protection and insuring the authority and itsofficers, agents, servants, and employees (and so long as special facilityrevenue bonds are outstanding, the trustee) against all direct or contingentloss or liability for damages for personal injury or death or damage toproperty, including loss of use thereof, occurring on or in any way related tothe special facility or occasioned by reason of occupancy by and the operationsof the other person upon, in, and around the special facility;

(C)  Provide all risk casualty insurance,including insurance against loss or damage by fire, lightning, flood,earthquake, typhoon, or hurricane, with standard extended coverage and standardvandalism and other malicious mischief endorsements; and

(D)  Provide insurance for workers'compensation and employer's liability for personal injury or death or damage toproperty (the other party may self-insure for workers' compensation ifpermitted by law);

provided that all policies with respect to lossor damage of property including fire or other casualty and extended coverageand builder's risk shall provide for payments of the losses to the authority,the other person, or the trustee as their respective interests may appear; andprovided further that the insurance may be procured and maintained as part of orin conjunction with other policies carried by the other person; and providedfurther that the insurance shall name the authority, and so long as any specialfacility revenue bonds are outstanding, the trustee, as additional insured; and

(5)  To indemnify, save, and hold the authority, thetrustee and their respective agents, officers, members, and employees harmlessfrom and against all claims and actions and all costs and expenses incidentalto the investigation and defense thereof, by or on behalf of any person, firm,or corporation, based upon or arising out of the special facility or the otherperson's use and occupancy thereof, including, without limitation, from andagainst all claims and actions based upon and arising from any:

(A)  Condition of the special facility;

(B)  Breach or default on the part of the otherperson in the performance of any of the person's obligations under the specialfacility lease;

(C)  Fault or act of negligence of the otherperson or the person's agents, contractors, servants, employees, or licensees;or

(D)  Accident to, or injury or death of, anyperson or loss of, or damage to any property occurring in or about the specialfacility, including any claims or actions based upon or arising by reason ofthe negligence or any act of the other person.

Any moneys received by the authority pursuantto paragraphs (2) and (3) shall be paid into the Hawaii community developmentrevolving fund and shall not be nor be deemed to be revenues of the specialfacility.

(b)  The term and all renewals and extensionsof the term of any special facility lease (including any amendments orsupplements thereto) shall not extend beyond the lesser of the reasonable lifeof the special facility which is the subject of the special facility lease, asestimated by the authority at the time of the entering into thereof, or thirtyyears.

(c)  Any special facility lease entered into bythe authority shall contain any other terms and conditions that the authoritydeems advisable to effectuate the purposes of this part. [L 2001, c 180, pt of§2]