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

(1)  Exclusively from the moneys derived from rates,rentals, fees, and charges of the project financed with the proceeds of suchbonds imposed under section 206J-5(b), or from such moneys together with anygrant 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 section206J-5(b), whether or not they are financed in whole or in part with theproceeds of the bonds; or

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

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

(b)  Bonds issued pursuant to this chapter maybe in one or more issues and in one or more series within an issue and shall beauthorized pursuant to resolution of the board.  The bonds shall be dated, maybear interest at such rate or rates payable at such time or times as thecorporation may determine with the approval of the governor, except for deeplydiscounted bonds which are subject to redemption or retirement at the accretedvalue thereof; provided that the discounted value of such bonds shall notexceed ten per cent of issue and no such bond shall be issued without priorapproval of the director of finance and the governor, shall mature at such timeor times not exceeding forty years from their date or dates, shall have suchrank or priority, and may be made redeemable before maturity at the option ofthe development corporation, the holders, or either, at such price or pricesand under such terms and conditions, all as may be determined by thedevelopment corporation.  The development corporation shall determine the formof the bonds, including any interest coupons to be attached thereto, and themanner of execution of the bonds, and shall fix the denomination ordenominations of the bonds and, subject to the approval of the state directorof finance, the place or places of payment of principal and interest, which maybe at any bank or trust company approved by the state director of financewithin or without the State.  The bonds may be issued in coupon or inregistered form, or both, as the development corporation may determine, andprovisions may be made for the registration of any coupon bonds as to principalalone and also as to both principal and interest, and for the reconversion intocoupon bonds of any bonds registered as to both principal and interest.  Thedevelopment corporation may sell bonds in such manner, either at public orprivate sale, and for such price as it may determine.

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

(d)  Should any bond issued under this chapteror 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 substitutionfor, and upon the cancellation of such mutilated bond or coupon, or in lieu ofand in substitution for, such lost, stolen, or destroyed bond or coupon.  Suchnew bond or coupon shall not be executed or delivered until the holder of themutilated, lost, stolen, or destroyed bond or coupon (1) has paid thereasonable expense and charges in connection therewith, (2) in the case of alost, stolen, or destroyed bond or coupon, has filed with the developmentcorporation or its fiduciary evidence satisfactory to the developmentcorporation or its fiduciary that such bond or coupon was lost, stolen, ordestroyed and that the holder was the owner thereof, and (3) has furnishedindemnity satisfactory to the development corporation.

(e)  The development corporation in itsdiscretion may provide that CUSIP identification numbers shall be printed onsuch bonds.  In the event such numbers are imprinted on any such bonds (1) nosuch number shall constitute a part of the contract evidenced by the particularbond upon which it is imprinted, and (2) no liability shall attach to thedevelopment corporation or any officer or agent thereof, including any fiscalagent, paying agent, or registrar for such bonds by reason of such numbers orany use made thereof, including any use thereof made by the developmentcorporation, any such officer, or any such agent, or by reason of anyinaccuracy, error, or omission with respect thereto or in such use.  Thedevelopment corporation in its discretion may require that all costs ofobtaining and imprinting such numbers shall be paid by the purchaser of suchbonds.  For the purposes of this subsection, the term "CUSIPidentification numbers" means the numbering system adopted by theCommittee for Uniform Security Identification Procedures formed by theSecurities Industry Association.

(f)  Whenever the development corporation hasauthorized the issuance of bonds under this chapter, bond anticipation notes ofthe development corporation may be issued in anticipation of the issuance ofsuch bonds and of the receipt of the proceeds of sale thereof, for the purposesfor which such bonds have been authorized.  All bond anticipation notes shallbe authorized by the development corporation, and the maximum principal amountof 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 ofsale of the bonds in anticipation of which the notes are issued and the moneysderived from rates, rents, fees, and charges, and other revenues from whichwould be payable and by which would be secured such bonds; provided that to theextent that the principal of the notes shall be paid from moneys other than theproceeds of sale of such bonds, the maximum amount of bonds that has beenauthorized in anticipation of which the notes are issued shall be reduced bythe amount of notes paid in such manner.  The authorization, issuance, and thedetails of such notes shall be governed by this chapter with respect to bondsinsofar as the same may be applicable; provided that each note, together withall renewals and extensions thereof, or refundings thereof by other notesissued under this subsection shall mature within five years from the date ofthe original note.

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

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

(2)  To pledge and assign the interest of thedevelopment corporation under any lease and other agreements related to aproject and the rights, duties, and obligations of the development corporationthereunder, including the right to receive payments 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", 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, condition, orobligation.

(7)  Subject to the approval of the state director offinance, to designate a national or state bank or trust company within orwithout the State, incorporated in the United States, to serve as trustee forthe 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 bythe development corporation to receive and receipt for, hold, and administerthe proceeds of such bonds and to apply the same to the purposes for which suchbonds are issued, or to receive and receipt for, hold, and administer themoneys derived from rates, rents, fees, and charges, and other revenues derivedby the development corporation under a lease or other agreement related to aproject, and to apply such moneys and other revenues to the payment of theprincipal of and interest on such bonds, or both, and any excess moneys andother revenues to the payment of expenses incurred by the developmentcorporation in administering such bonds or in carrying out such lease or otheragreement.  In the event that such trustee shall be appointed, any trustindenture, trust agreement, or indenture of mortgage entered into by thedevelopment corporation with the trustee may contain whatever covenants andprovisions as may be necessary, convenient, or desirable in order to securesuch bonds.  The development corporation may pledge and assign to the trusteethe interest of the development corporation under a lease and other agreementsrelated to a project and the rights, duties, and obligations of the developmentcorporation thereunder, including the right to receive revenues thereunder. The development corporation may appoint the trustee to serve as fiscal agentfor the payment of the principal and interest, and for the purchase,registration, transfer, exchange, and redemption of the bonds, and mayauthorize and empower the trustee to perform such functions with respect tosuch payment, purchase, registration, transfer, exchange, and redemption, asthe development corporation may deem necessary, advisable, or expedient,including without limitation the authentication of bonds and the holding of thebonds and coupons which have been paid and the supervision of the destructionthereof in accordance with law.

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

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

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

(h)  Bonds bearing the signature or facsimilesignature of officers in office on the date of the signing thereof shall bevalid and sufficient for all purposes, notwithstanding that before the deliverythereof and payment therefor any or all the persons whose signatures appearthereon shall have ceased to be officers of the development corporation.  Thebonds shall contain a recital that they are issued pursuant to this chapterwhich recital shall be conclusive evidence of their validity and of theregularity of their issuance.

(i)  The development corporation may issuebonds for the purpose of refunding any bonds then outstanding and issued underthis chapter whether or not such outstanding bonds have matured or are thensubject to redemption.  The development corporation may issue bonds for thecombined purposes of (1) financing or refinancing the cost of a project,improvement, or expansion thereof, and (2) refunding bonds which shalltheretofore have been issued under this chapter and shall then be outstanding, whetheror not such outstanding bonds have matured or are then subject to redemption. Nothing in this subsection shall require or be deemed to require thedevelopment corporation to elect to redeem or prepay bonds being refunded, orto redeem or prepay bonds being refunded which were issued, in the formcustomarily known as term bonds in accordance with any sinking fund installmentschedule specified in any proceedings authorizing the issuance thereof, or, inthe event the development corporation elects to redeem or prepay any suchbonds, to redeem or prepay as of any particular date or dates.  The issuance ofsuch bonds, the maturities and other details thereof, the rights and remediesof the holders thereof, and the rights, powers, privileges, duties, andobligations of the development corporation with respect to the bonds, shall begoverned by the foregoing provisions of this chapter insofar as the same may beapplicable. [L 1981, c 236, pt of §1; am L 1982, c 147, §12 and c 250, §6; am L1986, c 146, §9]