reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-158 Special purpose revenue bond anticipation notes.

§39A-158 Special purpose revenue bond anticipation notes.
Whenever the department has authorized the issuance of special purpose revenue bonds under this part, special purpose revenue bond anticipation notes of the department may be issued in anticipation of the issuance of such bonds and of the receipt of the proceeds of sale thereof, for the purposes for which such bonds have been authorized. All special purpose revenue bond anticipation notes shall be authorized by the department, and the maximum principal amount of such notes shall not exceed the authorized principal amount of such bonds. The notes shall be payable solely from and secured solely by the proceeds of sale of the special purpose revenue bonds in anticipation of which the notes are issued and the revenues from which would be payable and by which would be secured such bonds; provided that to the extent that the principal of the notes shall be paid from moneys other than the proceeds of sale of such bonds, the maximum amount of bonds in anticipation of which the notes are issued that has been authorized shall be reduced by the amount of notes paid in such manner. The authorization, issuance, and the details of such notes shall be governed by the provisions of this part with respect to special purpose revenue bonds insofar as the same may be applicable; provided that each note, together with all renewals and extensions thereof, or refundings thereof by other notes issued under this section, shall mature within five years from the date of the original note. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-160 Security for special purpose revenue bonds.

§39A-160 Security for special purpose revenue bonds.
Special purpose revenue bonds shall be payable solely from the revenues derived by the department from payments made to the department under the project agreement or other agreements entered into with respect to the project, and shall be secured solely by such revenues and by the pledges and assignments authorized by this part. All special purpose revenue bonds of the same issue, subject to the prior and superior rights of outstanding bonds, claims, obligations, or mechanic's and materialman's liens, shall have a prior and paramount lien on the revenues derived from the project agreement with respect to the project, for which such bonds have been issued, over and ahead of all special purpose revenue bonds of any issue payable from the revenues which may be subsequently issued and over and ahead of any claims or obligations of any nature against the revenues subsequently arising or subsequently incurred; provided that the department may reserve the right and privilege to subsequently issue additional series of special purpose revenue bonds, from time to time, payable from the revenues derived from such project agreement on a parity with the special purpose revenue bonds theretofore issued, and the subsequently issued series of special purpose revenue bonds may be secured, without priority by reason of date of sale, date of execution, or date of delivery, by a lien on the revenues in accordance with law, including this part. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-161 Special purpose revenue bonds not a general obligation of State.

§39A-161 Special purpose revenue bonds not a general obligation of State.
No holder or holders of any special purpose revenue bonds issued under this part shall ever have the right to compel any exercise of taxing power of the State to pay such bonds or the interest thereon and no moneys other than the revenues pledged to such bonds shall be applied to the payment thereof. Each special purpose revenue bond issued under this part shall recite in substance that such bond, including interest thereon, is not a general obligation of the State and is payable solely from the revenues pledged to the payment thereof, and that such bond is not secured directly or indirectly by the full faith and credit or the general credit of the State or by any revenues or taxes of the State other than the revenues specifically pledged thereto. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-162 Validity of special purpose revenue bonds.

§39A-162 Validity of special purpose revenue bonds.
The special purpose revenue bonds bearing the signature or facsimile signature of officers in office on the date of the signing thereof shall be valid and sufficient for all purposes, notwithstanding that before the delivery thereof and payment therefor any or all the persons whose signatures appear thereon shall have ceased to be officers of the department. Special purpose revenue bonds shall contain a recital that they are issued pursuant to this part, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-163 Use of revenues derived from project agreement.

§39A-163 Use of revenues derived from project agreement.
The department shall have the right to appropriate, apply, or expend the revenues derived with respect to the project agreement for a project for the following purposes:
(1) To pay when due all special purpose revenue bonds, premiums if any, and interest thereon, for the payment of which the revenues are or have been pledged, charged, or otherwise encumbered, including reserves therefore; and
(2) To the extent not paid by the project party to provide for all expenses of administration, operations, and maintenance of the project, including reserves therefor.
Unless and until adequate provision has been made for the foregoing purposes, the department shall not transfer the revenues derived from the project agreement to the general fund of the State. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-164 Special purpose revenue bonds exempt from taxation.

§39A-164 Special purpose revenue bonds exempt from taxation.
Special purpose revenue bonds and the income therefrom issued pursuant to this part shall be exempt from all state and county taxation except inheritance, transfer, and estate taxes. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-164.5 Federal tax exempt status. Special purpose revenue bonds issued pursuant to this part, to the extent practicable, shall be issued to comply with requirements imposed by applicable federal law providing that the interest on the special purpose revenue bonds shall be excluded from gross income for federal income tax purposes (except as certain minimum taxes or environmental taxes may apply). The director of finance may enter into agreements, establish funds or accounts, and take any action required to comply with applicable federal law. Nothing in this part shall be deemed to prohibit the issuance of special purpose revenue bonds, the interest on which may be included in gross income for federal income tax purposes. [L 1996, c 142, §4]

§39A-164.5
Federal tax exempt status.
Special purpose revenue bonds issued pursuant to this part, to the extent practicable, shall be issued to comply with requirements imposed by applicable federal law providing that the interest on the special purpose revenue bonds shall be excluded from gross income for federal income tax purposes (except as certain minimum taxes or environmental taxes may apply). The director of finance may enter into agreements, establish funds or accounts, and take any action required to comply with applicable federal law. Nothing in this part shall be deemed to prohibit the issuance of special purpose revenue bonds, the interest on which may be included in gross income for federal income tax purposes. [L 1996, c 142, §4]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-165 Exemption from taxation of department property.

§39A-165 Exemption from taxation of department property.
All revenues derived by the department from any project or under the project agreement pertaining thereto shall be exempt from all state and county taxation. Any right, title, and interest of the department in any project shall also be exempt from all state and county taxation. Except as otherwise provided by law, the interest of the project party or user of such project in a project or under the project agreement or related agreement shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the project party or other user. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-166 Refunding special purpose revenue bonds.

§39A-166 Refunding special purpose revenue bonds.
The legislature, by act enacted by an affirmative vote of two-thirds of the members to which each house is entitled, may authorize the issuance of refunding special purpose revenue bonds for the purpose of refunding any special purpose revenue bonds then outstanding and issued under this part, whether or not such outstanding special purpose revenue bonds have matured or are then subject to redemption. The legislature may provide, by act enacted by an affirmative vote of two-thirds of the members to which each house is entitled, for the issuance of a single issue of special purpose revenue bonds for the combined purposes of: (1) financing the cost of a project or improvement or expansion thereof, and (2) refunding special purpose revenue bonds which shall theretofore have been issued under this part and shall then be outstanding, whether or not such outstanding special purpose revenue bonds have matured or are then subject to redemption. Nothing in this section shall require or be deemed to require the department to elect to redeem or prepay special purpose revenue bonds being refunded, or to redeem or prepay special purpose revenue bonds being refunded which were issued in the form customarily known as term bonds in accordance with any sinking fund installment schedule specified in any instruments providing for the issuance thereof, or, in the event the department elects to redeem or prepay any such bonds, to redeem or prepay as of any particular date or dates. The issuance of such special purpose revenue bonds, the maturities and other details thereof, the rights and remedies of the holders thereof, and the rights, powers, privileges, duties, and obligations of the department with respect to the same, shall be governed by the foregoing provisions of this part insofar as the same may be applicable. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-167 Status of special purpose revenue bonds under the Uniform Commercial Code.

§39A-167 Status of special purpose revenue bonds under the Uniform Commercial Code.
Notwithstanding any of the provisions of this part or any recitals in any special purpose revenue bonds issued under this part, all such special purpose revenue bonds shall be deemed to be investment securities under the Uniform Commercial Code, chapter 490, subject only to the provisions of the special purpose revenue bonds pertaining to registration. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-168 Special purpose revenue bonds as legal investments and lawful security.

§39A-168 Special purpose revenue bonds as legal investments and lawful security.
The special purpose revenue bonds issued pursuant to this part shall be legal and authorized investments for banks, savings banks, trust companies, savings and loan associations, insurance companies, credit unions, fiduciaries, trustees, guardians, and for all public funds of the State or other political corporations or subdivisions of the State. Such special purpose revenue bonds shall be eligible to secure the deposit of any and all public funds of the State and any and all public funds of counties or other political corporations or subdivisions of the State, and such bonds shall be lawful and sufficient security for such deposits to the extent of their value when accompanied by all unmatured coupons appertaining thereto. [L 1981, c 122, pt of §2; am L 1990, c 59, §6]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-169 Access to and public disclosure of financial records of project party.

§39A-169 Access to and public disclosure of financial records of project party.
(a) Each project party with a project agreement with the department shall allow the department full access to the project party's financial records. Upon the request of the department for the examination of any such financial records, the project party shall allow the department to examine the requested records within a reasonably prompt time from the date of the request. If the department requests copies of the records, the project party shall provide the copies.
(b) To provide the public with full knowledge of the use of the proceeds and benefits derived from special purpose revenue bonds issued under this part, the department shall require each project party with a project agreement with the department to make available to the public all relevant financial records which pertain to the use of or savings resulting from the use of special purpose revenue bonds.
(c) The department shall adopt rules under chapter 91 for the purposes of this section. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-170 Estimate of benefits.

§39A-170 Estimate of benefits.
(a) Each project party with a project agreement with the department shall estimate the benefits derived from the use of the proceeds of special purpose revenue bonds. The benefits estimated shall be based on the creation of new jobs and potential effect on tax receipts. The format of and method for determining the estimates shall be established by the department and shall be uniform for each project party.
(b) To promote public understanding of the role played by special purpose revenue bonds in providing benefits to the general public, the department shall take appropriate steps to ensure public access to and scrutiny of the estimates determined under subsection (a).
(c) The department shall adopt rules under chapter 91 for the purposes of this section. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-171 Construction of this part.

§39A-171 Construction of this part.
The powers conferred by this part shall be in addition and supplemental to the powers conferred by any other law. Insofar as the provisions of this part are inconsistent with the provisions of any other law, this part shall be controlling. [L 1981, c 122, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-191 Definitions.

Note
Part heading amended by L 2012, c 242, §1.
§39A-191 Definitions.
Whenever used in this part, unless a different meaning clearly appears from the context:
"Department" means the department of budget and finance.
"Energy project" means any facilities for each single project or multiproject program of a project party, including a publicly owned energy cooperative, which is certified by the public utilities commission as being for the local furnishing of electric energy or gas; provided that any new generating unit for the production or generation of electric energy from fossil fuels shall not be considered an energy project for purposes of this part unless specifically authorized in any act providing for the authorization of the issuance of bonds pursuant to this part.
"Local furnishing of electric energy or gas" means providing property or land that is or will be:
(1) Depreciable property or land;
(2) Used to produce, collect, generate, transmit, store, distribute, or convey electric energy or gas, including without limitation, air or water pollution control facilities;
(3) Used in the trade or business of furnishing electric energy or gas; and
(4) Part of a system providing service to the general public of not more than two contiguous counties in the State.
"Project" means any energy project or telecommunications project.
"Project agreement" means any agreement entered into under this part by the department with the project party for the financing from the proceeds of special purpose revenue bonds of a telecommunications project or an energy project, including without limitation any loan agreement.
"Project party" means an electric or gas utility, including a publicly owned energy cooperative, serving the general public and that is regulated by the public utilities commission under chapter 269, or a telecommunications carrier or telecommunications common carrier, whether or not subject to regulation by the public utilities commission under chapter 269.
"Special purpose revenue bonds" or "bonds" mean bonds, notes, or other evidences of indebtedness issued pursuant to this part.
"Telecommunications carrier" or "telecommunications common carrier" has the meaning defined by section 269-1.
"Telecommunications project" means any facilities for each single project or multiproject program for the provision of telecommunications service of a project party that is a telecommunications carrier or a telecommunications common carrier.
"Telecommunications service" has the meaning defined by section 269-1. [L 1981, c 151, pt of §2; am L 2012, c 242, §2; am L 2016, c 98, §2]
Revision Note
Definitions rearranged.
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-192 Department powers as to projects.

§39A-192 Department powers as to projects.
In addition to powers that it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include but are not limited to the following:
(1) Notwithstanding and without compliance with section 103-7 and chapter 103D, but with the approval of the governor, to:
(A) Enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party; and
(B) Enter into and carry out any agreement, whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party;
(2) To issue special purpose revenue bonds pursuant to and in accordance with this part;
(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of a project;
(4) As security for the payment of the principal of and interest on the special purpose revenue bonds issued for a project, to:
(A) Pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which the special purpose revenue bonds are issued;
(B) Pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to the project or the special purpose revenue bonds;
(C) Pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to the project; or
(D) Any combination of the foregoing;
(5) To extend or renew any project agreement or any other agreement related thereto; provided that any renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for the extension or renewal contained in a project agreement or related agreement theretofore approved by the governor; and
(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part.
When the department finances a project by the issuance of special purpose revenue bonds as contemplated by this part, the State shall not exercise the power of eminent domain to acquire a project or any part thereof for lease or transfer to a project party, nor shall the State operate a project on behalf of a project party. [L 1981, c 151, pt of §2; am L Sp 1993, c 8, §55; am L 2004, c 216, §12; am L 2006, c 292, §6; am L 2012, c 242, §3]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-193 Compliance with state and local law.

§39A-193 Compliance with state and local law.
The financing of any project under this part shall not relieve any project party or other user of such project from the laws, ordinances, rules, and regulations of the State and county or any departments or boards thereof with respect to the construction, operation, and maintenance of projects, compliance with master plans or zoning laws or regulations, obtaining of building permits, compliance with building and health codes and other laws, ordinances, or rules and regulations of similar nature pertaining to the project, and such laws shall be applicable to such party or such other user to the same extent they would be if the costs of the project were directly financed by the project party. [L 1981, c 151, pt of §2; am L 2012, c 242, §4]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-194 Conditions precedent to negotiating and entering into a project agreement.

§39A-194 Conditions precedent to negotiating and entering into a project agreement.
(a) The department, prior to entering into negotiations with any project party, shall require that the project party shall agree to pay all fees, costs, and expenses (direct or indirect) assessed by the department in implementing and administering this part, as determined by the department, even though a project agreement may not be entered into and may further require the deposit of moneys with the department to pay for fees, costs, and expenses. Any amount of the deposit in excess of the amount required to pay the State shall be returned by the department to the project party that made the deposit. The State shall not be required to pay to the project party any interest or earnings on the deposit.
(b) The department shall not enter into any project agreement with respect to any project unless the department shall determine that:
(1) The project party is a responsible party, whether by reason of economic assets or experience in the type of enterprise to be undertaken through the project, or otherwise; or
(2) The obligations of the project party under the project agreement will be unconditionally guaranteed by a person who is a responsible party, whether by reason of economic assets or experience in the type of enterprise to be undertaken through the project, or otherwise. [L 1981, c 151, pt of §2; am L 2007, c 44, §9; am L 2012, c 242, §5]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-195 Project agreement.

§39A-195 Project agreement.
No special purpose revenue bonds shall be issued unless at the time of issuance the department shall have already entered into a project agreement with respect to the project for the financing of which the bonds are to be issued. Any project agreement entered into by the department shall contain provisions unconditionally obligating the project party:
(1) To pay to the department during the period or term of the project agreement, exclusive of any renewal or extension thereof and whether or not the project is used or occupied by the project party, the sum or sums, at the time or times, and in the amount or amounts that shall be sufficient:
(A) To pay the principal and interest on all special purpose revenue bonds issued to finance the project as the bonds become due, including any premium payable upon any required redemption of the bonds;
(B) To establish or maintain a reserve, if any, as may be required by the instrument authorizing or securing the special purpose revenue bonds;
(C) To pay all fees and expenses (including the fees and expenses of the paying agents and trustees) assessed in connection with the special purpose revenue bonds; and
(D) To pay the fees, costs, and expenses (direct or indirect) assessed by the department in administering the bonds or in carrying out the project agreement, as determined by the department; and
(2) To operate, maintain, and repair the project as long as it is used in the business of local furnishing of electric energy or gas, or in the business of providing telecommunications service, and to pay all costs of the operation, maintenance, and repair.
Moneys received by the department pursuant to paragraph (1)(D) shall not be, nor be deemed to be, revenues of the project and shall be paid into the general fund of the State. [L 1981, c 151, pt of §2; am L 2007, c 44, §10; am L 2012, c 242, §6]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-196 Issuance of special purpose revenue bonds to finance projects.

§39A-196 Issuance of special purpose revenue bonds to finance projects.
In addition to the other powers that it may otherwise have, the department may issue special purpose revenue bonds to finance, in whole or in part, the costs of a project. All bonds issued under this part are special purpose revenue bonds and the provisions of part III of chapter 39 shall not apply thereto. All special purpose revenue bonds issued pursuant to this part shall be issued in the name of the department and not in the name of the State.
The department, in determining the cost of any project, may also include the following:
(1) Financing charges, fees, and expenses of any trustee and paying agents for special purpose revenue bonds issued to pay the cost of such project;
(2) Interest on such bonds and the expenses of the State in connection with such bonds and the project to be financed from the proceeds of such bonds accruing or incurred prior to and during the period of construction and for not exceeding six months thereafter;
(3) Amounts necessary to establish or increase reserves for the special purpose revenue bonds;
(4) The cost of plans, specifications, studies, surveys, and estimates of cost and of revenues;
(5) Other expenses incidental to determining the feasibility or practicability of the project;
(6) Administration expenses;
(7) Interest cost incurred by the project party with respect to the project prior to the issuance of the special purpose revenue bonds; and
(8) Such other costs, commissions, and expenses incidental to the construction, acquisition, reconstruction, renovation, rehabilitation, improvement, betterment, operation, or extension of the project, the financing thereof, placing of the project in operation, and the issuance of the special purpose revenue bonds, whether incurred prior to or after the issuance of such bonds.
The legislature finds and determines that the exercise of the powers vested in the department by this part constitutes assistance to utilities serving the general public and that the issuance of special purpose revenue bonds to finance facilities of, or for, or to loan the proceeds of such bonds to assist, project parties, is in the public interest. [L 1981, c 151, pt of §2; am L 2012, c 242, §7]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-198 Special purpose revenue bond anticipation notes.

§39A-198 Special purpose revenue bond anticipation notes.
Whenever the department authorizes the issuance of special purpose revenue bonds under this part, special purpose revenue bond anticipation notes of the department may be issued in anticipation of the issuance of such bonds and of the receipt of the proceeds of sale thereof, for the purposes for which such bonds have been authorized. All special purpose revenue bond anticipation notes shall be authorized by the department, and the maximum principal amount of such notes shall not exceed the authorized principal amount of such bonds. The notes shall be payable solely from and secured solely by the proceeds of sale of the special purpose revenue bonds in anticipation of which the notes are issued and the revenues from which would be payable and by which would be secured such bonds; provided that to the extent that the principal of the notes shall be paid from moneys other than the proceeds of sale of such bonds, the maximum amount of bonds in anticipation of which the notes are issued that has been authorized shall be reduced by the amount of notes paid in such manner. The authorization, issuance, and the details of such notes shall be governed by the provisions of this part with respect to special purpose revenue bonds insofar as the provisions may be applicable; provided that each note, together with all renewals and extensions thereof, or refundings thereof by other notes issued under this section, shall mature within five years from the date of the original note. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-200 Security for special purpose revenue bonds.

§39A-200 Security for special purpose revenue bonds.
Special purpose revenue bonds shall be payable solely from the revenues derived by the department from payments made to the department under the project agreement or other supplemental agreements entered into with respect to the energy project, and shall be secured solely by such revenues and by the pledges and assignments authorized by this part. All special purpose revenue bonds of the same issue, subject to the prior and superior rights of outstanding bonds, claims, obligations, or mechanics' and materialmen's liens, shall have a prior and paramount lien on the revenues derived from the project agreement with respect to the energy project for which such bonds have been issued, over and ahead of all special purpose revenue bonds of any issue payable from the revenues which may be subsequently issued and over and ahead of any claims or obligations of any nature against the revenues subsequently arising or subsequently incurred; provided that the department may reserve the right and privilege to subsequently issue additional series of special purpose revenues bonds, from time to time, payable from the revenues derived from such project agreement on a parity with the special purpose revenue bonds theretofore issued and the subsequently issued series of special purpose revenue bonds, may be secured, without priority by reason of date of sale, date of execution, or date of delivery, by a lien on the revenues in accordance with law, including this part.
Notwithstanding any other provision hereof, the property in the energy project and all interest of the project party in the energy project and the revenues of the project party therefrom may be subjected to the present and future lien of any mortgage of the project party securing the project party's bonds, and the rights of the department and any trustee for the holders of the special purpose revenue bonds and the holders of the special purpose revenue bonds in the energy project and the revenues therefrom may be made subject to the prior lien of the project party's mortgage. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-201 Special purpose revenue bonds not a general obligation of the State.

§39A-201 Special purpose revenue bonds not a general obligation of the State.
No holder or holders of any special purpose revenue bonds issued under this part shall ever have the right to compel any exercise of taxing power of the State to pay such bonds or the interest thereon and no moneys other than the revenues pledged to such bonds shall be applied to the payment thereof. Each special purpose revenue bond issued under this part shall recite in substance that such bond, including interest thereon, is not a general obligation of the State and is payable solely from the revenues pledged to the payment thereof, and that such bond is not secured directly or indirectly by the full faith and credit or the general credit of the State or by any revenues or taxes of the State other than the revenues specifically pledged thereto. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-202 Validity of special purpose revenue bonds.

§39A-202 Validity of special purpose revenue bonds.
The special purpose revenue bonds bearing the signature or facsimile signature of officers in office on the date of the signing thereof shall be valid and sufficient for all purposes, notwithstanding that before the delivery thereof and payment therefor any or all the persons whose signatures appear thereon shall have ceased to be officers of the department. The special purpose revenue bonds shall contain a recital that they are issued pursuant to this part, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-203 Use of revenues derived from project agreement.

§39A-203 Use of revenues derived from project agreement.
The department shall have the right to appropriate, apply, or expend the revenues derived from the project agreement for a project for the following purposes:
(1) To pay when due all special purpose revenue bonds and interest thereon, for the payment of which the revenues are or have been pledged, charged, or otherwise encumbered, including reserves therefor; and
(2) To the extent not paid by the project party to provide for all expenses of administration, operation, and maintenance of the project, including reserves therefor.
Unless and until adequate provision has been made for the foregoing purposes, the department shall not transfer the revenues derived from the project agreement to the general fund of the State. [L 1981, c 151, pt of §2; am L 2012, c 242, §10]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-204 Special purpose revenue bonds exempt from taxation.

§39A-204 Special purpose revenue bonds exempt from taxation.
Special purpose revenue bonds and the income therefrom issued pursuant to this part shall be exempt from all state and county taxation except inheritance, transfer, and estate taxes. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-204.5 Federal tax exempt status. Special purpose revenue bonds issued pursuant to this part, to the extent practicable, shall be issued to comply with requirements imposed by applicable federal law providing that the interest on the special purpose revenue bonds shall be excluded from gross income for federal income tax purposes (except as certain minimum taxes or environmental taxes may apply). The director of finance may enter into agreements, establish funds or accounts, and take any action required to comply with applicable federal law. Nothing in this part shall be deemed to prohibit the issuance of special purpose revenue bonds, the interest on which may be included in gross income for federal income tax purposes. [L 1996, c 142, §5]

§39A-204.5
Federal tax exempt status.
Special purpose revenue bonds issued pursuant to this part, to the extent practicable, shall be issued to comply with requirements imposed by applicable federal law providing that the interest on the special purpose revenue bonds shall be excluded from gross income for federal income tax purposes (except as certain minimum taxes or environmental taxes may apply). The director of finance may enter into agreements, establish funds or accounts, and take any action required to comply with applicable federal law. Nothing in this part shall be deemed to prohibit the issuance of special purpose revenue bonds, the interest on which may be included in gross income for federal income tax purposes. [L 1996, c 142, §5]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-205 Exemption from taxation of department property.

§39A-205 Exemption from taxation of department property.
All revenues derived by the department from any project or under the project agreement pertaining thereto shall be exempt from all state and county taxation. Any right, title, and interest of the department in any project shall also be exempt from all state and county taxation. Except as otherwise provided by law, the interest of the project party or user of such project in a project or under the project agreement or related agreement shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the project party or other user. [L 1981, c 151, pt of §2; am L 2012, c 242, §11]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-206 Refunding special purpose revenue bonds.

§39A-206 Refunding special purpose revenue bonds.
The legislature, by act enacted by an affirmative vote of two-thirds of the members to which each house is entitled, may authorize the issuance of refunding special purpose revenue bonds for the purpose of refunding any special purpose revenue bonds then outstanding and issued under this part, whether or not such outstanding special purpose revenue bonds have matured or are then subject to redemption. The legislature may provide, by act enacted by an affirmative vote of two-thirds of the members to which each house is entitled, for the issuance of a single issue of special purpose revenue bonds for the combined purposes of:
(1) Financing the cost of a project or improvement or expansion thereof; and
(2) Refunding special purpose revenue bonds that shall theretofore have been issued under this part and shall then be outstanding, whether or not such outstanding special purpose revenue bonds have matured or are then subject to redemption.
Nothing in this section shall require or be deemed to require the department to elect to redeem or prepay special purpose revenue bonds being refunded, or to redeem or prepay special purpose revenue bonds being refunded that were issued in the form customarily known as term bonds in accordance with any sinking fund installment schedule specified in any law authorizing the issuance thereof, or, in the event the department elects to redeem or prepay any such bonds, to redeem or prepay as of any particular date or dates. The issuance of such special purpose revenue bonds, the maturities and other details thereof, the rights and remedies of the holders thereof, and the rights, powers, privileges, duties, and obligations of the department with respect to the bonds, shall be governed by the foregoing provisions of this part insofar as the provisions may be applicable. [L 1981, c 151, pt of §2; am L 2012, c 242, §12]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-207 Status of special purpose revenue bonds under Uniform Commercial Code.

§39A-207 Status of special purpose revenue bonds under Uniform Commercial Code.
Notwithstanding any of the provisions of this part or any recitals in any special purpose revenue bonds issued under this part, all such special purpose revenue bonds shall be deemed to be investment securities under the Uniform Commercial Code, chapter 490, subject only to the provisions of the special purpose revenue bonds pertaining to registration. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-208 Treatment of special purpose revenue bonds in regulatory proceedings.

§39A-208 Treatment of special purpose revenue bonds in regulatory proceedings.
(a) In the setting of rates to be paid by the consumers of utility services, the public utilities commission shall provide such consumers the maximum benefits derived by the utility from the use of such bonds.
(b) For the purpose of public disclosure, the public utilities commission, in every rate proceeding involving a public utility that is regulated by the public utilities commission under chapter 269 and which has utilized special purpose revenue bonds, shall make estimates of:
(1) The probable amounts that would have been incurred by the utility as capital costs if financing by means other than special purpose revenue bonds were utilized;
(2) The amount the utility pays for such bonds, including the principal and sinking fund requirements, the interest, and other expenses appropriately attributable to special purpose revenue bond financing; and
(3) The difference between (1) and (2), or the estimated savings realized by the consumers of the utility services. [L 1981, c 151, pt of §2; am L 1982, c 147, §4; am L 2012, c 242, §13]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-209 Special purpose revenue bonds as legal investments and lawful security.

§39A-209 Special purpose revenue bonds as legal investments and lawful security.
The special purpose revenue bonds issued pursuant to this part shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, savings and loan associations, insurance companies, credit unions, fiduciaries, trustees, guardians, and for all public funds of the State or other political corporations or subdivisions of the State. Such special purpose revenue bonds shall be eligible to secure the deposit of any and all public funds of the State and any and all public funds of counties or other political corporations or subdivisions of the State, and such bonds shall be lawful and sufficient security for such deposits to the extent of their value when accompanied by all unmatured coupons appertaining thereto. [L 1981, c 151, pt of §2; am L 1990, c 59, §7]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-210 Construction of this part.

§39A-210 Construction of this part.
The powers conferred by this part shall be in addition and supplemental to the powers conferred by any other law. Insofar as the provisions of this part are inconsistent with the provisions of any other law, this part shall be controlling. [L 1981, c 151, pt of §2]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-221 Definitions.

§39A-221 Definitions.
Whenever used in this part, unless a different meaning clearly appears from the context:
"Department" means the department of budget and finance.
"Early childhood education and care facility" means any property used primarily for the care and instruction of children from birth to age five; provided that it shall not include any property to be used primarily for sectarian instruction or study, or as a place for devotional activities or religious worship, or any property used primarily in connection with any part of a program of a school or department of divinity of any religious denomination.
"Project agreement" means any agreement entered into under this part by the department with a project party providing for the issuance of special purpose revenue bonds to finance facilities of a project party or for a project party or to loan the proceeds of such bonds to assist not-for-profit corporations that provide early childhood education and care facilities that serve the general public, including without limitation any loan agreement.
"Project party" means a not-for-profit corporation that provides an early childhood education and care facility that serves the general public.
"Refinancing of outstanding obligations" or "refinancing" means the liquidation, retirement, or provision for retirement with the proceeds of bonds issued by the State, of any indebtedness of a project party incurred to finance or aid in financing a lawful purpose of such project party not financed pursuant to this part which constitutes an early childhood education and care facility or consolidation of such indebtedness with indebtedness of the State incurred for an early childhood education and care facility related to the purpose for which the indebtedness of the project party was initially incurred.
"Special purpose revenue bonds" or "bonds" means bonds, notes, or other evidences of indebtedness of the State issued pursuant to this part. [L 1994, c 280, pt of §6]
2023 Hawaii Revised Statutes › Title 5. State Financial Administration › 39A. Special Purpose Revenue Bonds › 39A-222 Department powers as to early childhood education and care facilities.

§39A-222 Department powers as to early childhood education and care facilities.
In addition to powers that it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include but are not limited to the following:
(1) Notwithstanding and without compliance with section 103-7 and chapter 103D, but with the approval of the governor, to:
(A) Enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party; and
(B) Enter into and carry out any agreement, whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party;
(2) To issue special purpose revenue bonds pursuant to and in accordance with this part;
(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, extension, or refinancing of outstanding obligations related to a project;
(4) As security for the payment of the principal, premium, if any, and interest of the special purpose revenue bonds issued for this project, to:
(A) Pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which the special purpose revenue bonds are issued;
(B) Pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to the project or the special purpose revenue bonds;
(C) Pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to the project; or
(D) Any combination of the foregoing;
(5) To extend or renew any project agreement or any other agreement related thereto; provided that any renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for the extension or renewal contained in a project agreement or related agreement theretofore approved by the governor; and
(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part.
When the department finances or refinances a project by the issuance of special purpose revenue bonds as contemplated by this part, the State shall not exercise the power of eminent domain to acquire a project or any part thereof for lease or transfer to a project party, nor shall the State operate a project on behalf of a project party. [L 1994, c 280, pt of §6; am L 2006, c 292, §7]