Whenever the governing body of the county shall have authorized the issuance of bonds under this chapter, general obligation bond anticipation notes of the county are hereby authorized to be issued in anticipation of the issuance of the bonds and of the receipt of the proceeds of sale thereof, for the purposes for which the bonds have been authorized. All general obligation notes must be authorized by the governing body of the county issuing same by ordinance or resolution of the governing body, which may be the same or a different ordinance or resolution as that authorizing the bonds. The maximum principal amount of the notes shall not exceed the authorized principal amount of the bonds. The director of finance of the county, with the approval of the governing body, may issue and sell from time to time the bond anticipation notes which have been authorized by the governing body. The full faith and credit of the county shall be pledged to the payment of the principal of and interest on the notes. The authorization, issuance, and details of the notes shall be governed by this chapter with respect to bonds insofar as the same may be applicable, provided that:

(1) 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; and

Terms Used In Hawaii Revised Statutes 47-16

  • Bonds: means bonds, notes, and other instruments of indebtedness. See Hawaii Revised Statutes 47-1
  • County: means the counties of Hawaii, Kauai, and Maui and the city and county of Honolulu. See Hawaii Revised Statutes 47-1
  • Director of finance: means the director of finance of each county. See Hawaii Revised Statutes 47-1
  • Governing body: means the council of each county, or any other body exercising the legislative powers of the county. See Hawaii Revised Statutes 47-1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2) The interest on the notes shall be paid from the general fund of the county and the principal of the notes shall be paid from the proceeds of sale of the bonds in anticipation of which the notes have been issued or from any money in the general fund available therefor.

To the extent that the principal of the notes shall be paid from moneys other than the proceeds of sale of the 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 that manner.

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