HRS §39-151 Compound interest bond reserve fund
39-151. Compound interest bond reserve fund
[PART
VII. GENERAL PROVISIONS]
[§39-151] Compound interest bond reserve
fund. (a) There is hereby established the Hawaii compound interest bond
reserve fund, as a trust fund in the state treasury for the benefit of the
State, to be held and administered by the department of budget and finance.
The director, from time to time, may transfer a portion of general excise tax
revenues collected pursuant to section 237-31 to the credit of the compound
interest bond reserve fund, up to but not in excess of $5,000,000 during any
fiscal year. Not fewer than thirty days before the convening of each regular
session of the legislature, the director shall submit to the legislature a
report of all funds transferred to the credit of the compound interest bond
reserve fund.
(b) The moneys in the compound interest bond
reserve fund shall be held exclusively for the payment of principal of and
interest on compound interest bonds. The moneys shall be invested in such
amounts and in a manner as will assure the availability to the State of moneys
in an amount, together with other moneys available therefor, sufficient to make
payments of principal of and interest on compound interest bonds as the same
become due. The director of finance may invest and reinvest moneys deposited in
the compound interest bond reserve fund only in a manner that will not cause
the interest on any series of compound interest bonds to be includable in gross
income for federal income tax purposes for any reason, including, without
limitation, by causing any compound interest bond to be subjected to treatment
as an "arbitrage bond", as defined in section 148(a) of the Internal
Revenue Code of 1986, as amended, and applicable regulations.
L 1988, c 28, §2. [L 1990, c 163,
§2]