§268-5  Bonds; issue authorized.  For
the purpose of paying any and all costs in connection with the acquisition by
lease, charter, contract, purchase, condemnation, or construction of all or any
part of the ferry system, approaches, and roadways incidental thereto, and for
rehabilitating, rebuilding, enlarging, extending, battering, and improving all
or any part of the system and of the facilities used or useful in connection
therewith and for providing initial working capital, the department of transportation
is authorized to issue by certificate of its director revenue bonds of the
State in an amount not exceeding $14,000,000 or so much thereof as may be
necessary; provided that the department may issue the revenue bonds only after
approval by the governor.  Revenue bonds issued pursuant to the provisions of
the chapter shall be payable solely from and secured by a first charge and a
prior and paramount lien upon all or such part of the gross revenues derived
from the operation of the ferry system as shall be pledged thereto in and by
the certificate of the director of transportation providing for the issuance of
the bonds, and the bonds shall not constitute an indebtedness of the State. 
Except as otherwise provided herein, the bonds shall be issued in accordance
with, be subject to and be entitled to the security and benefits of chapter 39,
part III.  The bonds shall be sold by the director at public sale as provided
in section 39-54, or, with the approval of the governor and of the director of
finance, may be sold by the director at private sale, and in either event may
be sold at a discount of not to exceed two per cent of the par value thereof.
[L 1963, c 186, pt of §5; am L 1965, c 204, pt of §1(b); Supp, pt of §114-5;
HRS §268-5]



 



Note



 



  Reference to §39-54 is to the section prior to 1988.  L 1988,
c 28 enacted a new §39-54 with no reference to "public sale".  For
related provisions, see §39-55.