§306-5 Covenants in resolution authorizing revenue bonds. Any resolution or resolutions authorizing the issuance of revenue bonds under this chapter may contain covenants as to:

(1) The purpose or purposes to which the proceeds of the sale of the revenue bonds may be applied; the use and disposition of such proceeds; the investment thereof pending such use and disposition; and the use and disposition of the income from such investment;

(2) The use and disposition of the revenue of the university project or projects for the construction or maintenance of which the revenue bonds are issued or of the university system or systems in which such project or projects are to be included; the use and disposition of the revenue of all university projects and university systems, and of the revenues of the university, including the creation and maintenance of reserves; the investment of such revenues and of the moneys in such reserves; and the use and disposition of the income from such investments;

(3) The minimum amount of revenues to be produced by the university projects or university systems, over and above the amount required to be produced by the first sentence and clauses (1) through (3) of the second sentence of section 306-9;

(4) The use and disposition of the proceeds of the sale of any university project or university system, or part of either thereof;

(5) The construction and maintenance of any university project or university system other than the university project or projects for the construction or maintenance of which revenue bonds are issued or the university system or systems in which such latter project or projects are to be included;

(6) The issuance of other or additional revenue bonds payable either from the revenue of the university project or projects for the construction or maintenance of which the revenue bonds are issued or the revenue of the university system or systems in which such project or projects are to be included, or payable from the revenue of other university projects or university systems;

(7) The maintenance of the university project or university system, including the creation by the board of regents of such supervisory positions, which shall not be subject to chapters 76 and 77, as are necessary to facilitate the issuance of revenue bonds by ensuring the adequacy of revenues;

(8) The insurance to be carried on university projects and university systems and the use and disposition of insurance moneys;

(9) Books of account and inspection and audit thereof;

(10) A procedure by which the terms and conditions of the bond resolution or indenture may be subsequently amended or modified with the consent of the board, the vote or written assent of the holders of bonds or any proportion of the holder, or any trustee thereof; and

(11) The terms and conditions upon which the holders of bonds evidencing the obligation to repay loans, or any proportion of the holders, or any trustee thereof, shall be entitled to the appointment of a receiver by any court of competent jurisdiction, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of the university project or projects, or university system or systems, maintain them, prescribe rents, fees, and charges, and collect, receive, and apply all revenue thereafter arising therefrom in the same manner as the board itself might do, but the receiver shall have no power, nor be granted any power, to utilize, or permit the utilization of, any university project or university system other than in a manner consistent with and in furtherance of the purposes of the university; provided that all such covenants shall be subject to review by the governor.

This chapter and any such resolution or resolutions shall be a contract with the holders of bonds issued under this chapter, and the duties of the board and any such resolution or resolutions shall be enforceable by any bondholder by mandamus or other appropriate suit, action, or proceeding in any court of competent jurisdiction. [L 1947, c 141, pt of §1; RL 1955, §44-65; am L 1959, c 190, §2; am L Sp 1959 1st, c 20, §§1, 2(e); am L 1961, c 61, §2; HRS §306-5; am L 1971, c 141, §1(e)]