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:

Terms Used In Hawaii Revised Statutes 39A-195

  • Department: means the department of budget and finance. See Hawaii Revised Statutes 39A-191
  • 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. See Hawaii Revised Statutes 39A-191

  • Project: means any energy project or telecommunications project. See Hawaii Revised Statutes 39A-191
  • 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. See Hawaii Revised Statutes 39A-191
  • 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. See Hawaii Revised Statutes 39A-191
  • Telecommunications service: has the meaning defined by section269-1. See Hawaii Revised Statutes 39A-191
(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.

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