Support facility for variable rate revenue bonds
HRS §10-25.5
in effect10-25.5. Support facility for variable rate revenue bonds
If revenue bonds issued pursuant to this chapter are issued bearing interest at a rate or rates that vary from time to time or with a right of holders to tender the revenue bonds for purchase, or both, the board may contract for a support facility or facilities and remarketing arrangements as are required to market the revenue bonds to the greatest advantage of the board and the office upon terms and conditions as the board deems necessary and proper.
The board may enter into contracts or
agreements with the entity or entities providing a support facility; provided
that any contract or agreement shall provide, in essence, that any amount due
and owing by the board under the contract or agreement on an annual basis shall
be payable from the revenue of the office project or loan program for which
revenue bonds are issued or the revenue of the office; provided further that
any obligation issued or arising pursuant to the terms of the contract or
agreement in the form of revenue bonds, notes, or other evidences of
indebtedness shall only arise at such time as either:
(1) Moneys or securities have been irrevocably set
aside for the full payment of a like principal amount of revenue bonds issued
pursuant to this chapter; or
(2) A like principal amount of the issue or series of
revenue bonds to which the support facility relates are held in escrow by the
entity or entities providing the support facility.
[L 2009, c 146, §2; am L
2013, c 171, §6]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0010/HRS_0010-0025_0005.htmFetched: 11/10/2026