§206-35  Agreement to secure federal
contributions; default.  In addition to the powers conferred upon the board
of land and natural resources by other provisions of this chapter, the board,
in any contract for annual contributions with the federal government, may
obligate itself (which obligation shall be specifically enforceable and shall
not constitute a mortgage, notwithstanding any other laws) to convey to the
federal government possession of or title to the project to which the contract
relates, upon the occurrence of a substantial default (as defined in the
contract) with respect to the covenants or conditions to which the board is
subject.  The contract may provide further that in case of such conveyance, the
federal government may complete, operate, manage, lease, convey, or otherwise
deal with the project in accordance with the terms of the contract; provided
that the contract shall require that, as soon as practicable after the federal
government is satisfied that all defaults with respect to the project have been
cured and that the project will thereafter be operated in accordance with the
terms of the contract, the federal government shall reconvey to the board the
project as then constituted. [L 1961, c 6, §33; Supp, §98J-33; HRS §206-35]