Section 48E-9 - Powers with respect to and security for special purpose revenue bondsIn order to secure the payment of any of the special purpose revenue bonds issued pursuant to this chapter, and interest thereon, or in connection with such bonds, a county shall have the power as to such bonds:
(1) To pledge all or any part of the receipts derived by the county from the project agreement to the punctual payment of special purpose revenue bonds issued for the pollution control project financed from the proceeds thereof, and interest thereon, and to covenant against thereafter pledging any such receipts to any other bonds or any other obligations of the county for any other purpose, except as otherwise provided in the ordinance providing for the issuance of additional special purpose revenue bonds to be equally and ratably secured by a lien upon such revenues;(2) To pledge and assign the project agreement and other agreements related thereto rights, duties, and obligations of the county thereunder, including the right to receive revenues thereunder;(3) To covenant as to the use and disposition of the proceeds from the sale of such bonds;(4) To covenant to set aside or pay over reserves and sinking funds for such bonds and as to the disposition thereof;(5) To covenant and prescribe as to what happenings or occurrences shall constitute "events of default" and the terms and conditions upon which any or all of such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;(6) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, conditions, or obligation;(7) If deemed necessary or advisable by the director of finance, to designate a national or state bank or trust company within or without the State to serve as trustee for the holders of the special purpose revenue bonds and to enter into a trust indenture or trust agreement or indenture of mortgage with such trustee. The trustee may be authorized to receive and receipt for, hold, and administer the proceeds of the special purpose revenue bonds issued for the pollution control project and to apply the proceeds to the purposes for which such bonds are issued, or to receive and receipt for, hold, and administer the revenues and other receipts derived by the county under the project agreement and to apply such revenues and receipts to the payment of the principal of, or interest on such special purpose revenue bonds, or both. If a trustee is appointed, any trust indenture, trust agreement, or indenture of mortgage entered into with the trustee may contain any covenants and provisions as may be deemed necessary, convenient, or desirable by the director in order to secure such bonds. The county may pledge and assign to the trustee the project agreement and other agreements related thereto and the rights of the county thereunder, including the rights to revenues and receipts thereunder. If the director of finance appoints a trustee for the holders of the special purpose revenue bonds, the director 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 purpose revenue bonds, or may elect to limit the functions the director performs as such fiscal agent. The director may appoint the trustee to serve as the fiscal agent, and may authorize and empower the trustee to perform such functions with respect to such payment, purchase, registration, transfer, exchange, and redemption, as the director deems necessary, advisable, or expedient, including, without limitation, the holding of the special purpose revenue bonds and coupons which have been paid and the supervision and conduction or the destruction thereof in accordance with law;(8) If a trustee is not appointed pursuant to paragraph (7), to hold such proceeds or revenues and receipts, as the case may be, in a separate account in the treasury of the county, to be applied solely to the carrying out of the ordinance, trust indenture, trust agreement, or indenture of mortgage, if any, authorizing or securing such special purpose revenue bonds;(9) To execute all instruments necessary or convenient in the exercise of the powers granted by this chapter or in the performance of its covenants and duties; and(10) To make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure such bonds, or in the discretion of the governing body of the county, which tend to make such bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated in this chapter; it being the purpose hereof to give each county the power to do all things in the issuance of such bonds and for their security that may be consistent with the constitution of the State of Hawaii.