Hawaii § 268-5 - Bonds; issue authorized.

§ 268-5. Bonds; issue authorized.

For the purpose of paying any and all costs in connection with the acquisition by lease, charter, contract, purchase, condemnation, or construction of all or any part of the ferry system, approaches, and roadways incidental thereto, and for rehabilitating, rebuilding, enlarging, extending, battering, and improving all or any part of the system and of the facilities used or useful in connection therewith and for providing initial working capital, the department of transportation is authorized to issue by certificate of its director revenue bonds of the State in an amount not exceeding $14,000,000 or so much thereof as may be necessary; provided that the department may issue the revenue bonds only after approval by the governor. Revenue bonds issued pursuant to the provisions of the chapter shall be payable solely from and secured by a first charge and a prior and paramount lien upon all or such part of the gross revenues derived from the operation of the ferry system as shall be pledged thereto in and by the certificate of the director of transportation providing for the issuance of the bonds, and the bonds shall not constitute an indebtedness of the State. Except as otherwise provided herein, the bonds shall be issued in accordance with, be subject to and be entitled to the security and benefits of chapter 39, part III. The bonds shall be sold by the director at public sale as provided in section 39-54, or, with the approval of the governor and of the director of finance, may be sold by the director at private sale, and in either event may be sold at a discount of not to exceed two per cent of the par value thereof. [L 1963, c 186, pt of §5; am L 1965, c 204, pt of §1(b); Supp, pt of §114-5; HRS §268-5] Note Reference to §39-54 is to the section prior to 1988. L 1988, c 28 enacted a new §39-54 with no reference to "public sale". For related provisions, see §39-55. Previous Vol05_Ch0261-0319 Next