If there are not sufficient moneys applicable to the payment of the demands, the director of finance shall issue, in lieu thereof, a director’s warrant note or notes, equal in amount to the face value of the warrant or warrants so presented for payment, note to be substantially in the following form:

Director of Finance Warrant Note No…………………..

Honolulu, Hawaii, …………………………… 19….

On demand after date the Director of Finance of the State of Hawaii will pay to the order of………………………

……………… Dollars ($……..) with interest at .. %

a year, from date of issue to date of redemption.

……………………….

Director of Finance

On redemption this warrant note will be charged to………

……………………………………………. fund.

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The governor and director shall determine the rate of interest each director’s warrant note shall pay, which interest shall not be in excess of five per cent a year.

The director’s warrant notes may be issued for the combined face value of any number of warrants or director’s warrant notes previously issued against the same fund. Except for those notes issued to redeem director’s warrant notes previously issued, no warrant note shall be issued except in payment of a warrant or warrants presented for payment as in this section provided. The director shall cancel every warrant or warrant note presented as hereinbefore mentioned.

All the director’s warrant notes shall be issued upon the credit of the State, and the interest thereof shall be exempt from taxation.