§206J-12 - Bonds; bond anticipation notes.

§206J-12  Bonds; bond anticipation notes. 
(a)  The development corporation, with the approval of the governor, may issue
bonds in such amounts as authorized from time to time by law and as deemed
advisable for any of its corporate purposes.  The principal of, premium, if
any, and interest on such bonds shall be payable, subject to the prior payment
to the harbor special fund for the loss of revenues or incurrence of costs and
expenses because of any action taken by the development corporation or of any rent
payable to the department of transportation for the lease of properties within
the Aloha Tower complex:

(1)  Exclusively from the moneys derived from rates,
rentals, fees, and charges of the project financed with the proceeds of such
bonds imposed under section 206J-5(b), or from such moneys together with any
grant from the government in aid of such project; or

(2)  Exclusively from the moneys derived from rates,
rentals, fees, and charges of certain designated projects imposed under section
206J-5(b), whether or not they are financed in whole or in part with the
proceeds of the bonds; or

(3)  From the moneys derived from rates, rentals,
fees, and charges imposed under section 206J-5(b), generally, and any other
revenues derived by the development corporation from whatever source.

All revenue bonds authorized by this section shall
be issued pursuant to part III of chapter 39, except as provided in this
chapter.  The bonds shall be secured by a pledge of such moneys and may be
additionally secured by a mortgage of any project or other property of the
development corporation to the extent of its interest therein.  Neither the
board members nor any person executing the bonds shall be liable personally on
the bonds by reason of the issuance thereof.

(b)  Bonds issued pursuant to this chapter may
be in one or more issues and in one or more series within an issue and shall be
authorized pursuant to resolution of the board.  The bonds shall be dated, may
bear interest at such rate or rates payable at such time or times as the
corporation may determine with the approval of the governor, except for deeply
discounted bonds which are subject to redemption or retirement at the accreted
value thereof; provided that the discounted value of such bonds shall not
exceed ten per cent of issue and no such bond shall be issued without prior
approval of the director of finance and the governor, shall mature at such time
or times not exceeding forty years from their date or dates, shall have such
rank or priority, and may be made redeemable before maturity at the option of
the development corporation, the holders, or either, at such price or prices
and under such terms and conditions, all as may be determined by the
development corporation.  The development corporation shall determine the form
of the bonds, including any interest coupons to be attached thereto, and the
manner of execution of the bonds, and shall fix the denomination or
denominations of the bonds and, subject to the approval of the state director
of finance, the place or places of payment of principal and interest, which may
be at any bank or trust company approved by the state director of finance
within or without the State.  The bonds may be issued in coupon or in
registered form, or both, as the development corporation may determine, and
provisions may be made for the registration of any coupon bonds as to principal
alone and also as to both principal and interest, and for the reconversion into
coupon bonds of any bonds registered as to both principal and interest.  The
development corporation may sell bonds in such manner, either at public or
private sale, and for such price as it may determine.

(c)  Prior to the preparation of definitive
bonds, the development corporation may issue interim receipts or temporary bonds,
with or without coupons, exchangeable for definitive bonds when such bonds have
been executed and are available for delivery.

(d)  Should any bond issued under this chapter
or any coupon appertaining thereto become mutilated or be lost, stolen, or destroyed,
the development corporation may cause a new bond or coupon of like date,
number, and tenor to be executed and delivered in exchange and substitution
for, and upon the cancellation of such mutilated bond or coupon, or in lieu of
and in substitution for, such lost, stolen, or destroyed bond or coupon.  Such
new bond or coupon shall not be executed or delivered until the holder of the
mutilated, lost, stolen, or destroyed bond or coupon (1) has paid the
reasonable expense and charges in connection therewith, (2) in the case of a
lost, stolen, or destroyed bond or coupon, has filed with the development
corporation or its fiduciary evidence satisfactory to the development
corporation or its fiduciary that such bond or coupon was lost, stolen, or
destroyed and that the holder was the owner thereof, and (3) has furnished
indemnity satisfactory to the development corporation.

(e)  The development corporation in its
discretion may provide that CUSIP identification numbers shall be printed on
such bonds.  In the event such numbers are imprinted on any such bonds (1) no
such number shall constitute a part of the contract evidenced by the particular
bond upon which it is imprinted, and (2) no liability shall attach to the
development corporation or any officer or agent thereof, including any fiscal
agent, paying agent, or registrar for such bonds by reason of such numbers or
any use made thereof, including any use thereof made by the development
corporation, any such officer, or any such agent, or by reason of any
inaccuracy, error, or omission with respect thereto or in such use.  The
development corporation in its discretion may require that all costs of
obtaining and imprinting such numbers shall be paid by the purchaser of such
bonds.  For the purposes of this subsection, the term "CUSIP
identification numbers" means the numbering system adopted by the
Committee for Uniform Security Identification Procedures formed by the
Securities Industry Association.

(f)  Whenever the development corporation has
authorized the issuance of bonds under this chapter, bond anticipation notes of
the development corporation may be issued in anticipation of the issuance of
such bonds and of the receipt of the proceeds of sale thereof, for the purposes
for which such bonds have been authorized.  All bond anticipation notes shall
be authorized by the development corporation, and the maximum principal amount
of such notes shall not exceed the authorized principal amount of such bonds. 
The notes shall be payable solely from and secured solely by the proceeds of
sale of the bonds in anticipation of which the notes are issued and the moneys
derived from rates, rents, fees, and charges, and other revenues from which
would be payable and by which would be secured such bonds; provided that to the
extent that the principal of the notes shall be paid from moneys other than the
proceeds of sale of such bonds, the maximum amount of bonds that has been
authorized in anticipation of which the notes are issued shall be reduced by
the amount of notes paid in such manner.  The authorization, issuance, and the
details of such notes shall be governed by this chapter with respect to bonds
insofar as the same may be applicable; provided that each note, together with
all renewals and extensions thereof, or refundings thereof by other notes
issued under this subsection shall mature within five years from the date of
the original note.

(g)  In order to secure the payment of any of
the bonds issued pursuant to this chapter, and interest thereon, or in connection
with such bonds, the development corporation shall have the power as to such
bonds:

(1)  To pledge all or any part of the moneys derived
from rates, rents, fees, and charges, and other revenues derived by the
development corporation as provided in this chapter to the punctual payment of
bonds and interest thereon, and to covenant against thereafter pledging any
such moneys and other revenues to any other bonds or any other obligations of
the development corporation for any other purpose, except as otherwise stated
in the proceedings providing for the issuance of bonds permitting the issuance
of additional bonds to be equally and ratably secured by a lien upon such
moneys and other revenues.

(2)  To pledge and assign the interest of the
development corporation under any lease and other agreements related to a
project and the rights, duties, and obligations of the development corporation
thereunder, including the right to receive payments thereunder.

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

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

(5)  To covenant and prescribe as to what happenings
or occurrences shall constitute "events of default", the terms and
conditions upon which any or all of such bonds shall become or may be declared
due before maturity, and as to the terms and conditions upon which such
declaration 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, condition, or
obligation.

(7)  Subject to the approval of the state director of
finance, to designate a national or state bank or trust company within or
without the State, incorporated in the United States, to serve as trustee for
the holders of the bonds and to enter into a trust indenture, trust agreement,
or indenture of mortgage with such trustee.  The trustee may be authorized by
the development corporation to receive and receipt for, hold, and administer
the proceeds of such bonds and to apply the same to the purposes for which such
bonds are issued, or to receive and receipt for, hold, and administer the
moneys derived from rates, rents, fees, and charges, and other revenues derived
by the development corporation under a lease or other agreement related to a
project, and to apply such moneys and other revenues to the payment of the
principal of and interest on such bonds, or both, and any excess moneys and
other revenues to the payment of expenses incurred by the development
corporation in administering such bonds or in carrying out such lease or other
agreement.  In the event that such trustee shall be appointed, any trust
indenture, trust agreement, or indenture of mortgage entered into by the
development corporation with the trustee may contain whatever covenants and
provisions as may be necessary, convenient, or desirable in order to secure
such bonds.  The development corporation may pledge and assign to the trustee
the interest of the development corporation under a lease and other agreements
related to a project and the rights, duties, and obligations of the development
corporation thereunder, including the right to receive revenues thereunder. 
The development corporation may appoint the trustee to serve as fiscal agent
for the payment of the principal and interest, and for the purchase,
registration, transfer, exchange, and redemption of the bonds, and may
authorize and empower the trustee to perform such functions with respect to
such payment, purchase, registration, transfer, exchange, and redemption, as
the development corporation may deem necessary, advisable, or expedient,
including without limitation the authentication of bonds and the holding of the
bonds and coupons which have been paid and the supervision of the destruction
thereof in accordance with law.

(8)  To execute all instruments necessary or
convenient in the exercise of the powers herein granted or in the performance
of its covenants and duties.

(9)  To make such covenants and do any and all acts
and things as may be necessary, convenient, or desirable in order to secure
such bonds, notwithstanding that such covenants, acts, or things may not be
enumerated in this chapter.

No holder or holders of any bonds issued under
this chapter shall ever have the right to compel any exercise of taxing power
of the State to pay such bonds or the interest thereon and no moneys other than
the revenues pledged to such bonds shall be applied to the payment thereof.

(h)  Bonds bearing the signature or facsimile
signature of officers in office on the date of the signing thereof shall be
valid and sufficient for all purposes, notwithstanding that before the delivery
thereof and payment therefor any or all the persons whose signatures appear
thereon shall have ceased to be officers of the development corporation.  The
bonds shall contain a recital that they are issued pursuant to this chapter
which recital shall be conclusive evidence of their validity and of the
regularity of their issuance.

(i)  The development corporation may issue
bonds for the purpose of refunding any bonds then outstanding and issued under
this chapter whether or not such outstanding bonds have matured or are then
subject to redemption.  The development corporation may issue bonds for the
combined purposes of (1) financing or refinancing the cost of a project,
improvement, or expansion thereof, and (2) refunding bonds which shall
theretofore have been issued under this chapter and shall then be outstanding, whether
or not such outstanding bonds have matured or are then subject to redemption. 
Nothing in this subsection shall require or be deemed to require the
development corporation to elect to redeem or prepay bonds being refunded, or
to redeem or prepay bonds being refunded which were issued, in the form
customarily known as term bonds in accordance with any sinking fund installment
schedule specified in any proceedings authorizing the issuance thereof, or, in
the event the development corporation elects to redeem or prepay any such
bonds, to redeem or prepay as of any particular date or dates.  The issuance of
such bonds, the maturities and other details thereof, the rights and remedies
of the holders thereof, and the rights, powers, privileges, duties, and
obligations of the development corporation with respect to the bonds, shall be
governed by the foregoing provisions of this chapter insofar as the same may be
applicable. [L 1981, c 236, pt of §1; am L 1982, c 147, §12 and c 250, §6; am L
1986, c 146, §9]