§15-19-81  Assessment area bonds; financing of special assessments from available moneys.  (a)  In the event of an election to pay all or any part of any special assessment in installments, the unpaid amount of the special assessment required to pay the contract price of the improvement and any other costs involved in the undertaking of the improvement, including the cost of land acquisition shall be obtained by the issuance of sufficient assessment area bonds of the authority to raise the required amount; provided that assessment area bonds need not be issued (i) if the aggregate of the assessment installments for all property owners in the assessment area is less than $1,000 in each year, or (ii) if, as provided in subsection (e) hereof, the authority shall determine to advance the funds for the unpaid amount of the special assessment out of any available funds of the authority.
 (b) The bonds shall be authorized by resolution of the authority and issued pursuant to and under the authority and requirements of the authority.  The bonds shall be in such form, either coupon or registered, shall bear the name of the benefited assessment area, shall be dated, shall be numbered, shall be of the denomination or denominations, shall bear interest at such rate or rates per annum, but not more than fifteen per cent per annum, payable at such time or times and at such place or places, shall mature at such time or times so as to cover the outstanding installment payments determined upon pursuant to the provisions of this chapter, shall be subject to call at such price or prices and upon such terms and conditions, and may be subject to tender by the holders thereof upon such terms and conditions, all as determined by resolution of the authority.  The bonds shall bear the facsimile signature of the chairman of the authority and shall be sealed with the seal of the authority, or a facsimile thereof, attested by the facsimile of the signature of the secretary of the authority and shall bear a certificate of authentication manually executed by the registrar.  No bond shall be valid or obligatory unless certified or authenticated by the registrar.  Interest coupons, if any, shall bear a facsimile of the signature of the chairman of the authority.  The executive director shall preserve a record of the bonds in a suitable book kept for that purpose.  The authority shall designate the registrar, if any, for the bonds and the place or places of registration and transfer of such bonds, and such registrar shall maintain such books of registry as shall be required by resolution of the authority.
 (c) The assessment area bonds shall be payable only out of the moneys collected on account of assessments made for the improvement or improvements for which they are issued and the authority shall not otherwise guarantee payment of the bonds; provided that interest payments may be advanced by the executive director out of moneys available in the assessment area revolving fund.
 (d) Whenever the authority shall have outstanding any assessment area bonds, and the authority with the approval of the governor and the director of finance, determines that it will be financially sound and advantageous to the State, the authority, the landowners and the lessees within the assessment area for which assessment area bonds have been issued to refund any outstanding assessment area bonds, the authority may provide for the issuance of refunding assessment area bonds with which to provide for the payment of the outstanding assessment area bonds or any part thereof at or before the maturity or redemption date thereof, with the right to include various series and issues of outstanding assessment area bonds in a single issue of refunding assessment area bonds, to pay any redemption premium and interest to accrue and become payable on the outstanding assessment area bonds being refunded, and to establish reserves for the refunding assessment area bonds and partly to refund outstanding assessment area bonds and partly for the payment of the contract prices of an improvement and any other costs involved in the undertaking of an improvement for which the outstanding assessment area bonds were issued.
 The refunding assessment area bonds may be issued and delivered at any time prior to the date of maturity or redemption date of the assessment area bonds to be refunded that the authority deems to be in its best interest.  The refunding assessment area bonds, except as specifically provided in this subsection (d) shall be issued in accordance with the provisions of this chapter with respect to assessment area bonds.  Pending the time the proceeds derived from the sale of refunding assessment area bonds issued under this chapter are required for the purposes for which they were issued, the proceeds, upon authorization or approval of the governor, may be invested in obligations of, or obligations unconditionally guaranteed by the United States of America, or in savings accounts, time deposits, or certificates of deposit of any bank or trust company within or without the State, to the extent that such savings accounts, time deposits, or certificates of deposit are collaterally secured by a pledge of obligations of, or obligations unconditionally guaranteed by, the United States of America; or in obligation of any state of the United States of America or any agency, instrumentality, or local government thereof, the provision for payment of the principal and interest which have irrevocably been made by deposit of obligations of, or obligations unconditionally guaranteed by the United States of America.
 To further secure assessment area bonds, or the assessment area bonds being refunded, or both, the State may enter into a contract with any bank or trust company, within or without the State, with respect to the safekeeping and application of the earnings of investments.  All assessment area bonds refunded and redeemed by the issue and sale or issue and exchange of refunding assessment area bonds shall be defeased.
 The determination of the authority with respect to the financial soundness and advantage of the issue and delivery of refunding assessment area bonds authorized, when approved by the governor and the director of finance, shall be conclusive, but nothing in this subsection (d) shall require the holders of any outstanding assessment area bonds being refunded to accept payment thereof otherwise than as provided in the assessment area bonds to be refunded.
 (e) In the event of an election to pay all or any part of any special assessment in installments, in lieu of issuing assessment area bonds to pay the contract price of the improvement and any other costs involved in the undertaking of the improvement, including the cost of land acquisition, the authority may determine by resolution to advance the funds for the unpaid amount of the special assessment out of any available funds of the authority.  In the event of such determination by the authority to finance all or any part of any special assessment from available moneys, the interest payable on the unpaid principal of such special assessment shall accrue to the benefit of and be deposited, together with the principal of the funds so advanced, into the fund from which such funds were advanced.  [Eff 9/17/84, am 11/1/85, am 2/22/93, am 6/3/95] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-82  Advances from available funds prior to the issuance of bonds.  In the event of an election to pay all or any part of any special assessment in installments and a determination by the authority to issue assessment area bonds pursuant to section 15-19-81 hereof, the amount required for immediate use during the period prior to the issuance of assessment area bonds to pay the contract price of the improvement or the installments thereof from time to time as they fall due may be advanced out of any available funds of the authority.  [Eff 9/17/84, am 6/3/95] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-83  Special funds for payment of bonds.  (a)  All moneys collected on account of assessments and interest for any improvement or improvements after the issuance of any assessment area bonds, including refunding assessment bonds, for the improvement or improvements shall be kept by the executive director in a special fund and applied solely to the payment of interest and principal of the assessment area bonds until the bonds have been paid.  In the event that any surplus remains in the special fund after the payment of assessment area bonds chargeable against the fund or in case of a premium received on the sale of the bonds, it shall be credited and become a part of a fund to be known as the assessment area revolving fund.  Moneys in the assessment area revolving fund shall be available to make up deficiencies in the proceeds of bonds sold below par, to cover deficiencies in interest realized on account of diminishing balances of installments outstanding, to advance interest due on assessment area bonds outstanding prior to collection of annual assessments, to be advanced by the authority in lieu of issuing assessment area bonds for the purposes specified in section 15-19-81(e) hereof, to pay all expenses in connection with the sale of delinquent assessment area lots, and to pay the prices of the delinquent lots as are bid for and purchased for the authority by the executive director, and the executive director is authorized upon the purchase to transfer the proper amounts so bid to the proper special funds for the respective assessment area concerned.
 (b) The executive director shall advance moneys in the assessment area revolving fund for any part of unpaid assessments for any improvement or improvements when, pursuant to this chapter, the authority has rounded off the amount of bonds to be issued, the advancement to be in the amount equal to the difference between the total of the bonds issued and the total of the unpaid assessment.  Upon recommendation of the executive director, the authority may by resolution authorize the executive director also to advance moneys in the assessment area revolving fund for unpaid assessments for any improvement or improvements in lieu of the issuance of bonds where the aggregate of the assessment installments for all property owners in the assessment area is less than $1,000.00 for each year, for the purposes specified in section 15-19-81(e) hereof in lieu of issuing assessment area bonds, for any unpaid amount of the first installment of the assessments where elections have been made to pay the assessments in installments and for any payment in connection with any improvement or improvements for which the issuance and sale of assessment area bonds have been duly authorized.  After the authority has created, defined and established an assessment area pursuant to this chapter, the authority, upon recommendation of the executive director, may by resolution authorize the executive director to advance moneys in the assessment area revolving fund for the cost of land acquisition for improvements pursuant to this chapter.  [Eff 9/17/84, am 2/22/93, am 6/3/95] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-84  Payment of principal and interest.  The principal and interest of the bonds shall be payable at such place or places as may be determined by resolution of the authority.  In all cases the bonds and coupons, if any, shall recite the places of payment.  In case any bonds are made payable elsewhere than in the county in which the improvements are situated, the executive director shall remit the funds necessary to pay the interest and principal when due, of the bonds, with exchange, to the institution so designated, first assuring himself that the institution is then solvent.  [Eff 9/17/84, am 11/1/85] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-85  Sale and use of bonds.  (a)  Assessment area bonds, including refunding assessment area bonds, may be sold at public or private sale, and for a price or prices as may be determined by resolution of the authority to be in the best interest of the State.
 (b) If the bonds are to be sold at public sale, the executive director shall advertise for tenders, for the par value or below par value thereof in accordance with the provisions hereof and the resolution authorizing the issuance and sale of bonds.  Publication of the advertisement shall be made at least once in a newspaper of general circulation published in the county in which the improvements are situated at least five days prior to the date of sale.  In the event only part of the issue so advertised to bid for, then the executive director shall sell at private sale the whole or any part of the remainder of the issue for the par value or below par value thereof at an interest rate not exceeding the highest interest rate received and established by bid.
 (c) If no purchaser is found at the private sale pursuant to subsection (b) above, then the authority may by resolution authorize the executive director to sell at private sale the remainder of the issue for the par value or below par value thereof at an interest rate not exceeding the maximum interest rate established by the resolution authorizing the issue.  The proceeds from the sale thereof shall be applied to pay wholly or in part the contract price of improvement and any other costs involved in the undertaking of the improvement, including the cost of land acquisition.  In the event no purchaser is found at an advertised sale or at private sale, then the unsold bonds so issued shall be used by the authority at par at the maximum interest rate established by the resolution authorizing the issue to pay wholly or in part the contract price of the improvement made as aforesaid.
 (d) Prior to the sale of any assessment area bonds, the authority shall determine that sufficient sources of funds are available to complete the improvements in the assessment area for which the bonds are to be issued.  [Eff 9/17/84, am 11/1/85, am 2/22/93] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-86  Payment before maturity.  (a)  On and after the second interest due date of any bonds so issued and annually thereafter, whenever sufficient funds are in the hands of the executive director, exceeding the next interest payment on the unpaid balance of any bonds so issued, the executive director shall call for payment, in accordance with the terms of such bond sale.  Interest on the bonds so called for payment shall cease on the date of call, provided that all notice requirements have been satisfied.  The monies provided for the payment of the bonds with the interest unpaid to the date of their call for payment shall be transferred from the assessment area assessment fund into the assessment area bond and interest redemption fund to which only the owners of the bonds shall thereafter look for payment.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-87  Payment at maturity.  All bonds not previously paid shall be paid at maturity together with interest thereon as the same become due at the places and in the manner prescribed by this chapter.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-88  Bonds not chargeable against general revenues. Bonds issued under the provisions of this chapter shall not constitute a general or other obligation of the State, or a charge against the general fund of the State.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)
 

 §15-19-89  County financing.  The counties may issue assessments area bonds to implement the purposes of this chapter.  Said bonds may be issued pursuant to county legal requirements provided that the authority has consented to said requirements prior to issuance.  [Eff 9/17/84] (Auth:  HRS §§206E-4, 206E-6) (Imp:  HRS §§206E-4, 206E-6)