Covenants in resolution authorizing revenue bonds
HRS §10-27
in effect10-27. Covenants in resolution authorizing revenue bonds
Any resolution or resolutions authorizing the issuance of revenue bonds under this part may contain covenants as to:
(1) The purpose or purposes to which the proceeds of
the sale of revenue bonds may be applied; the use and disposition of such
proceeds; the investment thereof pending such use and disposition; and the use
and disposition of the income from such investment;
(2) The use and disposition of the revenue of the
office project or projects or the loan program or programs for which the
revenue bonds are issued are to be included; the use and disposition of the
revenue of all office projects and loan programs, and of the revenues of the
office, including the creation and maintenance of reserves; the investment of
such revenues and of the moneys in such reserves; and the use and disposition
of the income from such investments;
(3) The minimum amount of revenues to be produced by
the office projects, the loan programs, or the office, over and above the
amount required to be produced by the first sentence and paragraphs (1) to (3)
of section 10‑31;
(4) The use and disposition of the proceeds of the
sale of any office project, or part thereof;
(5) The acquisition, purchase, construction,
reconstruction, improvement, betterment, extension, and maintenance of any
office project other than the office project or projects for the construction
or maintenance of which revenue bonds are issued;
(6) The issuance of other or additional revenue bonds
payable either from the revenue of the office project or projects or the loan
program or programs for which the revenue bonds are issued or from the revenue
of the office or payable from the revenue of other office projects or loan
programs;
(7) The maintenance of the office project and
administration of the loan program, including the creation by the board of such
supervisory positions, which shall not be subject to chapter 76, as are
necessary to facilitate the issuance of revenue bonds by ensuring the adequacy
of revenues;
(8) The insurance to be carried on office projects or
for loan programs and the use and disposition of insurance moneys;
(9) Books of account and inspection and audit
thereof;
(10) A procedure by which the terms and conditions of
the bond resolution or indenture may be subsequently amended or modified with
the consent of the board, the vote or written assent of the holders of bonds or
any proportion of the holders, or any trustee thereof; and
(11) The terms and conditions upon which the holders
of revenue bonds, or any proportion of the holders, or any trustee thereof,
shall be entitled to the appointment of a receiver by any court of competent
jurisdiction, which court shall have jurisdiction in such proceedings, and
which receiver may enter and take possession of the office project or projects,
maintain them, prescribe rents, fees, and charges therefrom, enforce or
foreclose loans, and collect, receive, and apply all revenue thereafter arising
therefrom in the same manner as the board itself might do, but the receiver
shall have no power, nor be granted any power, to utilize, or permit the
utilization of, any office project or to enforce any loan agreement other than
in a manner consistent with and in furtherance of the purposes of the office.
This part and any such resolution or
resolutions shall be a contract with the holders of bonds issued under this
part, and the duties of the board and any such resolution or resolutions shall
be enforceable by any bondholder by mandamus or other appropriate suit, action,
or proceeding in any court of competent jurisdiction.
[L 1994, c 283, pt of
§2(2); am L 2000, c 253, §150; am L 2008, c 16, §1; am L 2013, c 171, §7]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0010/HRS_0010-0027.htmFetched: 11/10/2026