Covenants in resolution authorizing revenue bonds
HRS §304A-2677
in effect304A-2677. Covenants in resolution authorizing revenue bonds
[(a)] Any resolution authorizing the issuance of revenue bonds under this subpart may contain covenants as to:
(1) The purpose to which the proceeds of the sale of
the revenue bonds may be applied; the use and disposition of the proceeds; the
investment thereof pending the use and disposition; and the use and disposition
of the income from the investment;
(2) The use and disposition of the revenue of the
university pledged to the payment of the revenue bonds, including the creation
and maintenance of reserves; the investment of the revenues and of the moneys
in the reserves; and the use and disposition of the income from the
investments;
(3) The minimum amount of revenue of the university
to be produced by the university project, university system, or network or any
combination thereof over and above the amount required to be produced by
section 304A‑2681;
(4) The use and disposition of the proceeds of the
sale of any university project, university system, or network or any part
thereof;
(5) The construction or maintenance of any university
project, university system, or network or any combination thereof for the
construction or maintenance of which revenue bonds are issued, or any
university system or network in which university projects constructed or
maintained are later included;
(6) The issuance of other or additional revenue bonds
and the revenue of the university from which additional revenue bonds shall be
payable;
(7) The maintenance of the university projects,
university system, or network or any combination thereof, including the
creation by the board of supervisory positions, which shall not be subject to
chapter 76, as are necessary to facilitate the issuance of revenue bonds to
ensure the adequacy of revenue of the university;
(8) The insurance on a university project, university
system, or network or any combination thereof, 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 resolution may be subsequently amended or modified by the board with or
without the consent of the holders of revenue 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, and the receiver may enter and take possession of the university
project, university system, or network; maintain them; prescribe rents, fees,
and charges; and collect, receive, and apply all revenue of the university
thereafter arising therefrom in the same manner as the board itself may do; provided
that the receiver shall have no power to mandate appropriations, or to use, or
permit the use of, any university project, university system, or network or any
combination thereof, other than in a manner consistent with and in furtherance
of the purposes of the university.
[(b)] This subpart and any resolution shall be
deemed a contract with the holders of revenue bonds issued under this subpart.
The duties of the board and any resolution shall be enforceable by any
bondholder by mandamus or other appropriate suit, action, or proceeding in any
court of competent jurisdiction.
[L 2007, c 161, pt of §1]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0304A/HRS_0304A-2677.htmFetched: 11/10/2026