§268-5  Bonds; issue authorized.  Forthe purpose of paying any and all costs in connection with the acquisition bylease, charter, contract, purchase, condemnation, or construction of all or anypart of the ferry system, approaches, and roadways incidental thereto, and forrehabilitating, rebuilding, enlarging, extending, battering, and improving allor any part of the system and of the facilities used or useful in connectiontherewith and for providing initial working capital, the department of transportationis authorized to issue by certificate of its director revenue bonds of theState in an amount not exceeding $14,000,000 or so much thereof as may benecessary; provided that the department may issue the revenue bonds only afterapproval by the governor.  Revenue bonds issued pursuant to the provisions ofthe chapter shall be payable solely from and secured by a first charge and aprior and paramount lien upon all or such part of the gross revenues derivedfrom the operation of the ferry system as shall be pledged thereto in and bythe certificate of the director of transportation providing for the issuance ofthe bonds, and the bonds shall not constitute an indebtedness of the State. Except as otherwise provided herein, the bonds shall be issued in accordancewith, 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 providedin section 39-54, or, with the approval of the governor and of the director offinance, may be sold by the director at private sale, and in either event maybe 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".  Forrelated provisions, see §39-55.