§268-7  Operation of ferry system.  The
department of transportation may operate such ferry system, including all
operations, whether intrastate or international, upon any route or routes, as a
revenue producing undertaking, and the State covenants with the holders from
time to time of bonds issued pursuant to this chapter that so long as any of
the bonds are outstanding and unpaid the State will continue to maintain and
operate the ferry system and to impose and collect rates, rentals, and charges
for the services, facilities, and commodities sold, furnished, or supplied
through the facilities of the ferry system which will provide gross revenues
sufficient to pay the principal of and interest on all bonds issued pursuant to
this chapter, including reserves therefor, and to maintain all funds or
reserves created pursuant to the certificate authorizing such bonds for the
rehabilitation, renewal, and replacement of the facilities of the ferry system
so as to maintain the same in good operating condition.  The department shall
have full charge of the construction, rehabilitation, rebuilding, enlarging,
improving, and maintenance of the ferry system, including approaches and
roadways incidental thereto that may be authorized by the department, the
granting of concessions, the collection of tolls, and other charges for the
services and facilities of the undertaking; provided that the department shall
comply with the provisions of chapter 102 relating to contracts for concessions
on public property.  The gross revenues derived from the operation of the ferry
system shall be appropriated, applied, or expended for the purposes and in the
order of priority set forth in section [39-62]; provided that if the
certificate authorizing the issuance of the bonds shall so provide, the
revenues shall be appropriated, applied, or expended for the rehabilitation,
renewal and replacement of the facilities required to maintain the ferry system
in good operating condition, including such reserve or reserves therefor as
shall be provided in the certificate, immediately after being appropriated,
applied, or expended to the payment of the bonds and interest thereon,
including reserves therefor, and before being appropriated, applied, or
expended to the other purposes set forth in the section. [L 1963, c 186, §6; am
L 1965, c 204, §1(c); Supp, §114-6; HRS §268-7]