[§206E-185]  Special facility revenue bonds.
 All special facility revenue bonds authorized to be issued shall be issued
pursuant to part III of chapter 39, except as follows:



(1)  No revenue bonds shall be issued unless at the
time of issuance the authority shall have entered into a special facility lease
with respect to the special facility for which the revenue bonds are to be
issued;



(2)  The revenue bonds shall be issued in the name of
the authority, and not in the name of the State;



(3)  The revenue bonds shall be payable solely from
and secured solely by the revenues derived by the authority from the special
facility for which they are issued;



(4)  The final maturity date of the revenue bonds
shall not be later than either the estimated life of the special facility for
which they are issued or the initial term of the special facility lease;



(5)  If deemed necessary or advisable by the
authority, or to permit the obligations of the other person to the special
facility lease to be registered under the U.S. Securities Act of 1933, the
authority, with the approval of the director of finance, may appoint a national
or state bank within or without the State to serve as trustee for the holders
of the revenue bonds and may enter into a trust indenture or trust agreement
with the trustee.  The trustee may be authorized by the authority to collect,
hold, and administer the revenues derived from the special facility for which
the revenue bonds are issued and to apply the revenues to the payment of the
principal and interest on the revenue bonds.  If any trustee shall be
appointed, any trust indenture or agreement entered into by the authority with
the trustee may contain the covenants and provisions authorized by part III of
chapter 39 to be inserted in a resolution adopted or certificate issued, as
though the words "resolution" or "certificate" as used in
that part read "trust indenture or agreement".  The covenants and
provisions shall not be required to be included in the resolution or
certificate authorizing the issuance of the revenue bonds if included in the
trust agreement or indenture.  Any resolution or certificate, trust indenture,
or trust agreement adopted, issued, or entered into by the authority pursuant
to this part may also contain any provisions required for the qualification
thereof under the U.S. Trust Indenture Act of 1939.  The authority may pledge
and assign to the trustee the special facility lease and the rights of the
authority including the revenues thereunder;



(6)  If the authority, with the approval of the
director of finance, shall have appointed or shall appoint a trustee for the
holders of the revenue bonds, then notwithstanding the provisions of the second
sentence of section 39-68, the director of finance may elect not to serve as
fiscal agent for the payment of the principal and interest, and for the
purchase, registration, transfer, exchange, and redemption, of the revenue
bonds, or may elect to limit the functions the director of finance shall
perform as the fiscal agent.  The authority, with the approval of the director
of finance, may appoint the trustee to serve as the fiscal agent, and may
authorize and empower the trustee to perform the functions with respect to
payment, purchase, registration, transfer, exchange, and redemption, that the
authority may deem necessary, advisable, or expedient, including, without
limitation, the holding of the revenue bonds and coupons which have been paid
and the supervision and conduction of the destruction thereof in accordance
with sections 40-10 and 40-11.  Nothing in this paragraph shall be a limitation
upon or construed as a limitation upon the powers granted in the preceding
paragraph to the authority, with the approval of the director of finance, to
appoint the trustee, or granted in sections 36-3 and 39-13 and the third
sentence of section 39-68 to the director of finance to appoint the trustee or
others, as fiscal agents, paying agents, and registrars for the revenue bonds
or to authorize and empower the fiscal agents, paying agents, and registrars to
perform the functions referred to in that paragraph and sections, it being the
intent of this paragraph to confirm that the director of finance as aforesaid
may elect not to serve as fiscal agent for the revenue bonds or may elect to
limit the functions the director of finance shall perform as the fiscal agent,
that the director of finance may deem necessary, advisable, or expedient;



(7)  The authority may sell the revenue bonds either
at public or private sale;



(8)  If no trustee shall be appointed to collect,
hold, and administer the revenues derived from the special facility for which
the revenue bonds are issued, the revenues shall be held in a separate account
in the treasury of the State, separate and apart from the Hawaii community
development revolving fund, to be applied solely to the carrying out of the
resolution, certificate, trust indenture, or trust agreement authorizing or
securing the revenue bonds;



(9)  If the resolution, certificate, trust indenture,
or trust agreement shall provide that no revenue bonds issued thereunder shall
be valid or obligatory for any purpose unless certified or authenticated by the
trustee for the holders of the revenue bonds, signatures of the officers of the
State upon the bonds required by section 39-56 may be facsimiles of their
signatures;



(10)  Proceeds of the revenue bonds may be used and
applied by the authority to reimburse the other person to the special facility
lease for all preliminary costs and expenses, including architectural and legal
costs; and



(11)  If the special facility lease shall require the
other person to operate, maintain, and repair the special facility which is the
subject of the lease, at the other person's expense, the requirement shall
constitute compliance by the authority with section 39‑61(a)(2), and none
of the revenues derived by the authority from the special facility shall be
required to be applied to the purposes of section 39‑62(2).  Sections
39-62(4), 39-62(5), and 39-62(6) shall not be1 apply to the revenues
derived from a special facility lease. [L 2001, c 180, pt of §2]