All special facility revenue bonds, including special facility revenue refunding bonds, authorized to be issued shall be issued pursuant to part III of chapter 39, except as follows:

(1) No special facility revenue bonds shall be issued unless at the time of issuance the department shall have entered into a special facility lease with respect to the special facility for which the revenue bonds are to be issued;
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Terms Used In Hawaii Revised Statutes 266-55

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Trustee: A person or institution holding and administering property in trust.
(2) Special facility revenue bonds shall be issued in the name of the department, and not in the name of the State;
(3) No further authorization of the legislature shall be required for the issuance of the special facility revenue bonds, but the approval of the governor shall be required for the issuance;
(4) Special facility revenue bonds shall be payable solely from and secured solely by the revenues derived by the department from the special facility for which they are issued, as defined in § 266-51;
(5) The final maturity date of the special facility revenue bonds shall not be later than either the estimated life of the special facility for which they are issued or the initial term of the special facility lease;
(6) If deemed necessary or advisable by the department, or to permit the obligations of the other person to the special facility lease to be registered under the United States Securities Act of 1933, the department with the approval of the state director of finance may appoint a national or state bank within or without the State to serve as trustee for the holders of the special facility revenue bonds and may enter into a trust indenture or trust agreement with the trustee. The trustee may be authorized by the department to collect, hold, and administer the revenues derived from the special facility for which the special facility revenue bonds are issued and to apply the revenues to the payment of the principal and interest on the special facility revenue bonds. If any trustee shall be appointed, any trust indenture or agreement entered into by the department with the trustee may contain the covenants and provisions authorized by part III of chapter 39 to be inserted in a resolution adopted or certificate issued, as though the words “resolution” or “certificate” as used in that part read “trust indenture or agreement”. Those covenants and provisions shall not be required to be included in the resolution or certificate authorizing the issuance of the special facility revenue bonds if included in the trust indenture or agreement. Any resolution or certificate, trust indenture, or trust agreement adopted, issued, or entered into by the department pursuant to this part may also contain any provisions required for the qualification thereof under the United States Trust Indenture Act of 1939. The department may pledge and assign to the trustee the special facility lease and the rights of the department including the revenues thereunder;
(7) If the department with the approval of the state director of finance shall have appointed or shall appoint a trustee for the holders of the special facility revenue bonds, then notwithstanding the second sentence of § 39-68, the director of finance may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the special facility revenue bonds, or may elect to limit the functions the director shall perform as fiscal agent. The department, with the approval of the director of finance, may appoint the trustee to serve as fiscal agent and may authorize and empower the trustee to perform any functions with respect to the payment of the principal and interest and the purchase, registration, transfer, exchange, and redemption of the special facility revenue bonds, as the department may deem necessary, advisable, or expedient, including, without limitation, the holding of the special facility revenue bonds and coupons that have been paid, and the supervision and destruction thereof in accordance with sections 40-10 and 40-11. Nothing in this paragraph shall be a limitation upon or be construed as a limitation upon the powers granted in the preceding paragraph to the department with the approval of the director of finance to appoint the trustee, or granted in §§ 36-3 and 39-13 and the third sentence of § 39-68 to the director of finance to appoint the trustee or others, as fiscal agents, paying agents, and registrars for the special facility revenue bonds or to authorize and empower fiscal agents, paying agents, and registrars to perform the functions referred to in the preceding paragraph and §§ 36-3 and 39-13 and the third sentence of § 39-68, it being the intent of this paragraph to confirm that the director of finance as aforesaid may elect not to serve as fiscal agent for the special facility revenue bonds or may elect to limit the functions the director shall perform as fiscal agent, as the director of finance may deem necessary, advisable, or expedient;
(8) The department may sell special facility revenue bonds either at public or private sale;
(9) If no trustee shall be appointed to collect, hold, and administer the revenues derived from the special facility for which the special facility revenue bonds are issued, the revenues shall be held in a separate account in the treasury of the State, separate and apart from the harbor special fund, to be applied solely to the carrying out of the resolution, certificate, trust indenture, or trust agreement authorizing or securing the special facility revenue bonds;
(10) If the resolution, certificate, trust indenture, or trust agreement shall provide that no special facility revenue bonds issued thereunder shall be valid or obligatory for any purpose unless certified or authenticated by the trustee for the holders of the special facility revenue bonds, signatures of the officers of the State upon the bonds and the coupons thereof as required by § 39-56 may be evidenced by their facsimile signatures;
(11) The proceeds of special facility revenue bonds may be used and applied by the department to reimburse the other person to the special facility lease for all preliminary costs and expenses, including architectural and legal costs; and
(12) If the special facility lease shall require the other person to operate, maintain, and repair the special facility that is the subject of the lease, at the other person’s expense, the requirement shall constitute compliance by the department with section 39-61(a) (2), and none of the revenues derived by the department from the special facility shall be required to be applied to the purposes of section 39-62(2). Sections 39-62(4), 39-62(5), and 39-62(6) shall not be applicable to the revenues derived from a special facility lease.

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