§268-7  Operation of ferry system.  Thedepartment of transportation may operate such ferry system, including alloperations, whether intrastate or international, upon any route or routes, as arevenue producing undertaking, and the State covenants with the holders fromtime to time of bonds issued pursuant to this chapter that so long as any ofthe bonds are outstanding and unpaid the State will continue to maintain andoperate the ferry system and to impose and collect rates, rentals, and chargesfor the services, facilities, and commodities sold, furnished, or suppliedthrough the facilities of the ferry system which will provide gross revenuessufficient to pay the principal of and interest on all bonds issued pursuant tothis chapter, including reserves therefor, and to maintain all funds orreserves created pursuant to the certificate authorizing such bonds for therehabilitation, renewal, and replacement of the facilities of the ferry systemso as to maintain the same in good operating condition.  The department shallhave full charge of the construction, rehabilitation, rebuilding, enlarging,improving, and maintenance of the ferry system, including approaches androadways incidental thereto that may be authorized by the department, thegranting of concessions, the collection of tolls, and other charges for theservices and facilities of the undertaking; provided that the department shallcomply with the provisions of chapter 102 relating to contracts for concessionson public property.  The gross revenues derived from the operation of the ferrysystem shall be appropriated, applied, or expended for the purposes and in theorder of priority set forth in section [39-62]; provided that if thecertificate authorizing the issuance of the bonds shall so provide, therevenues shall be appropriated, applied, or expended for the rehabilitation,renewal and replacement of the facilities required to maintain the ferry systemin good operating condition, including such reserve or reserves therefor asshall 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, orexpended to the other purposes set forth in the section. [L 1963, c 186, §6; amL 1965, c 204, §1(c); Supp, §114-6; HRS §268-7]