HomeMy WebLinkAboutORD 2001-118 2000-2002
COUNT" OF IIAW~I`I S'I`~T'E O~ ~I~W~I`I
SILL NO. 131
B~-af t ~S
®I101~NCL I®10.
PROVIDING FOR THE ISSUANCE OF IMPROVEMENT DISTRICT NO. 17, KALOKO
SUBDNISION, 2001 SPECIAL ASSESSMENT REFUNDING BONDS IN AN
AMOUNT NOT TO EXCEED.,$10,165,000
WHEREAS, pursuant to Chapter 12 of the Hawaii County Code (1983), as amended (the
"Act"), and certain authorizing rLsolutions adopted by the County Council of the County of
Hawaii (the "County Council") lursuant to such Act, the County of Hawaii (the "County"} has
heretofore established Improvement District No. 17, Kaloko Subdivision (the "Improvement
District") and undertaken the construction of certain public improvements benetitting the
Improvement District (the "Projcct"); and
WHEREAS, in order to provide funds for the costs of the Project, the County issued
$14,000,000 aggregate principal amount of County of Hawaii Improvement District No. 17,
Kaloko Subdivision, 1991 Special Assessment Bonds (the "1991 Bonds"), the principal of and
interest on which is payable from assessments levied on assessable properties within the
Improvement District pursuant to Ordinance No. 91-55 of the County effective June 21, 1991
(the "1991 Assessment Ordinance"); and
WHEREAS, TSA Corporation and MID Corporation, as owners of property within the
Improvement District, have petitioned the County Council for approval of a proposed refunding
plan for the 1991 Bonds (the "Refunding Plan") and the issuance by the County of a new series of
special assessment bonds for the Improvement District (the "Bonds") in order to provide funds
for the refunding of the 1991 Bonds pursuant to the Refunding Plan; and
WHEREAS, pursuant to Resolution No. 144-01, adopted on November 7, 2001 in
accordance with the Act (the "Authorizing Resolution"), the County Council has proposed the
adoption of the Refunding Plan and authorized further action by the County in connection
therewith; and
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WHEREAS, in connection with the Refunding Plan, the County Council has further
determined that the issuance of the Bonds, upon the terms herein provided, is desirable for the
purpose of refunding the 1991 Bonds;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL, OF THE COUNTY OF
HAWAII AS FOLLOWS:
ARTICLE I
Findings and Definitions
Section 1.01. Findings. The County Council finds that (a) the preceding recitals are
true; (b) the issuance of the Bonds for the purpose of refunding the 1991 Bonds is desirable; and
(c) the sale of the Bonds at private sale, without advertising for bids will result in a lower overall
cost.
Section 1.02. Definitions. Except as otherwise provided herein, all terms defined in the
foregoing Recitals to this Ordinance shall have the meanings set forth in such Recitals. In
addition, the following terms shall have the meanings set forth below:
"Administrative Expense Account" means the Account designated as the "County of
Hawaii, Improvement District No.17, Administrative Expense Account" established by the
County within the Special Assessment Fund pursuant to Article N hereof.
"Administrative Expenses" means administrative expenses of the County for which the
Special Assessments maybe levied in accordance with the Act.
"Annual Debt Service" means, for any Bond Year, the sum on the first day of such Bond
Year of (i) the interest due in sucl:~ Bond Year on Outstanding Bonds and Parity Bonds, (ii) the
principal amount of Outstanding Bonds and Parity Bonds falling due by their terms in such Bond
Year, and (iii) the aggregate principal amount of Bonds and Parity Bonds required to be
redeemed or paid in such Bond Y ear.
"Authorized Investment" means, subject to applicable law, United States Treasury notes,
bonds, bills or certificates of indebtedness (including United States Treasury Obligations State
and Local Government Series) oa other direct obligations issued by the United States Treasury
for which the faith and. credit of the United States are pledged for the payment of principal and
interest; and obligations issued by banks for cooperatives, federal land banks, federal
intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, the
Tennessee Valley Authority, or other federal agencies or United States government-sponsored
enterprises; and any other investment in which funds of the County maybe legally invested.
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"Bond Payment Fund" jneans the Fund designated as the "County of Hawaii,
Improvement District No. 17, Bond Payment Fund" established by the County with the Paying
Agent pursuant to Article N hereof.
"Bond Register" means: the bond registration books maintained by the Bond Registrar on
behalf of the County with respect to the ownership of the Bonds and transfers and exchanges of
such Bonds.
"Bond Registrar" means Bank of Hawaii, acting through its Pacific Century Trust
division, Honolulu, Hawaii, and its successor or successors as bond registrar for the Bonds
hereunder.
"Bond Year" means the period of twelve (12) consecutive months ending on each
August 1 in any year during which Bonds or Parity Bonds are or will be Outstanding; provided,
however, the final Bond Year shall end on the date on which the Bonds or Parity Bonds are fully
paid or redeemed.
"Bondowner" or "Owner" or "Holder" means the person or persons in whose name or
names any Bond or Parity Bond is registered.
"Bonds" means the special assessment bonds of the County, designated at its "County of
Hawaii, Improvement District 1`Io. 17, Kaloko Subdivision, 2001 Special Assessment Refunding
Bonds" authorized by this Ordinance.
"Business Day" means any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking institutions either in the state in which the Paying Agent has its principal
corporate trust office or in the City of New York, New York, are authorized or obligated by law
or executive order to be closed.
"Code" means the Internal Revenue Code of 1986, as amended.
"Cost of Issuance Fund" means the Fund designated as the "County of Hawaii,
Improvement District No. 17, Cost of Issuance Fund" established by the County with the Paying
Agent pursuant to Article N hereof.
"Director of Finance" means the Director of Finance of the County of Hawaii, Hawaii.
"Escrow Agent" means Bank of Hawaii, acting through its Pacific Century Trust
division, Honolulu, Hawaii, which shall hold the Escrow Fund as paying agent for the 1991
Bonds.
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"Escrow Agreement" means the Escrow Agreement to be entered into between the
County and the Escrow Agent providing for the deposit of Bond proceeds and other available
moneys into the Escrow Fund for the purpose of refunding the 1991 Bonds.
"Escrow Fund" means the special escrow fund to be established with the Escrow Agent
pursuant to the Escrow Agreement.
"Fiscal Year" means the period beginning on July 1 and ending on the next following
June 30.
"Interest Payment Date" means the semiannual interest payment dates established for the
Bonds, as specified in the Issuance Certificate.
"Issuance Certificate" means the Certificate of the Director of Finance pursuant to Section
2.02 hereof, setting forth the details relating to issuance of the Bonds.
"Ordinance" means this Ordinance, as amended or supplemented pursuant to the terms
hereof.
"Outstanding," when used with reference to the Bonds or Parity Bonds, means all Bonds
or Parity Bonds theretofore or thereupon being authenticated and delivered by the County under
this Ordinance except: (i) Bonds or Parity Bonds theretofore canceled by the County or
surrendered to the County for cancellation; (ii) Bonds or Parity Bonds for the transfer or
exchange of or in lieu of or in substitution for which other Bonds or Parity Bonds shall have been
authenticated and delivered by tl~e County pursuant to this Ordinance; and (iii) Bonds or Parity
Bonds deemed to have been paid as provided in Section 8.01 hereof.
"Parity Bonds" means all bonds, notes or other similar evidences of indebtedness
authorized hereunder and hereafter issued, payable out of the Special Assessments and which, as
provided in this Ordinance, rank on a parity with the Bonds.
"Paying Agent" means Bank of Hawaii, acting through its Pacific Century Trust division,
Honolulu, Hawaii, and its successor or successors as paying agent for the Bonds hereunder.
"Rebate Fund" means the Fund designated as the "County of Hawaii, Improvement
District No. 17, Rebate Fund" established by the County pursuant to Article IV hereof.
"Record Date" means the 15"' day of the month preceding each Interest Payment Date,
whether or not such 15`h day is a Business Day.
"Reserve Account" means the Account designated as the "County of Hawaii,
Improvement District No. 17, Reserve Account" established by the County within the Special
Assessment Fund pursuant to Article IV hereof.
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"Reserve Requirement" means, as of the date of calculation, the lesser of (i) the highest
Annual Debt Service payable in the then current or any succeeding Bond Year, or (ii) 125% of
the average of the Annual Debt Service payable in the then current and each succeeding Bond
Year; provided that the amount deposited into the Reserve Account at the time of issuance of the
Bonds or any Parity Bonds sha13 not exceed 10% of the principal amount thereof (net of original
issue discount, if applicable).
"Securities Depository" means a recognized securities depository selected by the County
to maintain abook-entry system in respect to the Bonds, and shall include any substitute for or
successor to the securities depository initially acting as Securities Depository.
"Securities Depository Nominee" means, as to any Securities Depository, such Securities
Depository or the nominee of such Securities Depository in whose name there shall be registered
on the registration books maintained by the Bond Registrar the bond certificates to be delivered
to and immobilized at such Securities Depository during the continuation with such Securities
Depository of participation in its book-entry system.
"Special Assessment Account" means the Account designated as the "County of Hawaii,
Improvement District No. 17, Special Assessment Account" established by the County within the
Special Assessment Fund pursuant to Article IV hereof.
"Special Assessment Fund" means the Fund established by the County pursuant to the
Act for the deposit of Special Assessments collected on behalf of the Improvement District.
"Special Assessments" means the special assessments authorized to be levied pursuant to
the Act by the c~;ounty on behalf of the Improvement District, as originally authorized by the
1991 Assessment Ordinance and as revised pursuant to the Authorizing Resolution and this
Ordinance, together with proceeds from any sale of property collected pursuant to the foreclosure
provisions of this Ordinance for-the delinquency of such Special Assessments.
ARTICLE II
The Refunding Plan; Issuance of Bonds
Section 2.01. The Refunding Plan. The Refunding Plan of the Improvement District is
hereby approved. In connection with the Refunding Plan:
(a) The County hereby authorizes the refunding of the 1991 Bonds by call for
optional redemption at the applicable redemption price on February 1, 2002. Funds for such
redemption shall be provided froa~n the proceeds of the Bonds to be issued pursuant to the
Refunding Plan and other available funds of the Improvement District held for payment of the
1991 Bonds, subject to the further provisions hereof.
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(b) The County hereby revises the existing assessment roll of the Improvement
District, as established pursuant to the 1991 Assessment Ordinance, to reflect the refunding of
the 1991 Bonds pursuant to the Refunding Plan and to provide for the levy of Special
Assessments sufficient to pay *.he principal of and interest on $10,165,000 aggregate principal
amount of Bonds, representing he maximum amount of Bonds authorized to be issued hereunder
for the refunding of the 1991 Bonds. The Special Assessments pursuant to the revised
assessment roll are based on the special benefits conferred on the assessed properties, subject to a
maximum unit of assessment of $0.2855205 per square foot. The revised assessment roll is set
forth in Exhibit A attached hereto and incorporated herein by this reference. Such assessment
roll is and shall be deemed to be the final assessment roll with respect to such refunding;
provided, however, that if the aggregate principal amount of Bonds actually issued is less than
the maximum amount authorizedI hereunder, the assessments allocated to properties within the
Improvement District shall be reduced proportionately based on the applicable percentages of the
total assessment amount specified in Exhibit A, as calculated by the Director of Finance without
further action by the County Council.
Section 2.02. Issuance of Bonds; Issuance Certificate. The issuance and sale of the
Bonds, in an aggregate principal amount not to exceed $10,165,000, is hereby authorized and
approved. The Director of Finar<ce is hereby authorized to determine the final terms of the
Bonds and the application of the proceeds thereof, which matters shall be set forth in the Issuance
Certificate to be executed and delivered by the Director of Finance in connection with the
issuance of the Bonds, in accordance with the following:
(a) The following terms of the Bonds shall be as determined by the Director of
Finance (and specified in the Issuance Certificate):
(i} The date of the Bonds;
(ii) The aggregated principal amount of the Bonds, which shall not exceed the
maximum authorized amount of $10,165,000;
(iii) The maturty date or dates of the Bonds, provided that the final maturity
date shall not be later than August 1, 201 l;
(iv) The Interest Payment Dates for the Bonds;
(v) The interest rate or rates on the Bonds, which shall not exceed 8% per
annum;
(vi) The redemption provisions for the Bonds (including provisions for
mandatory sinking fund r demptions and optional redemptions), provided that the
redemption price payable upon call for optional redemption (if applicable) shall not
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exceed 102% of the principal amount to be redeemed, plus accrued interest to the
redemption date;
(vii) If bond insurance is to be obtained for the Bonds, the applicable terms
relating to such insurance; and
(viii) Such additional terms, not otherwise provided herein, as maybe
reasonably necessary or desirable in connection with the issuance of the Bonds.
(b) The proceeds of the Bonds, together with other available funds of the
Improvement District held for payment of, or with respect to, the 1991 Bonds, shall be applied in
the amounts determined by the Director of Finance (and specified in the Issuance Certificate), as
follows:
(i) Accrued interest on the Bonds, from the date of the Bonds to the date of
initial delivery thereof, shall be deposited in the Special Assessment Account;
(ii) An amount equal to the estimated costs of issuance for the Bonds shall be
deposited in the Cost of Issuance Fund;
(iii) An amount equal to the Reserve Requirement shall be deposited in the
Reserve Account; and
(iv) The balance shall be deposited in the Escrow Fund for the refunding of the
1991 Bonds.
Section 2.03. Further Actions Regarding the Bonds.
(a) The County hereby authorizes the preparation and distribution of an official
statement, in preliminary and final form as approved by the Director of Finance, in connection
with the offering of the Bonds. ~ he Director of Finance is hereby authorized to execute the
official statement, in final form, for distribution in connection with such offering. The Director
of Finance is hereby further authorized to negotiate and execute a purchase contract for the
Bonds; provided that the underw~°iter's discount under such purchase contract shall not exceed
1.75% of the aggregate principal amount of the Bonds.
(b) All actions heretofore taken by the officers and agents of the County with respect
to the sale and issuance of the Bends are hereby approved, confirmed and ratified, and the Mayor
of the County, the Director of Finance and any and all other officers of the County are hereby
authorized and directed, for and in the name and on behalf of the County, to do any and all things
and take any and all actions relating to the execution and delivery of any and all certificates,
requisitions, agreements and othcx documents, which they, or any of them, may deem necessary
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or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance
with this Ordinance.
ARTICLE III
Form and Terms of Bonds
Section 3.01. General. The Bonds shall be substantially in the form attached hereto as
Exhibit B, which form is hereby approved and adopted as the form of the Bonds. The Bonds
shall be issued in fully registerefi form in denominations of $100,000 or any multiple of $5,000
in excess thereof and shall be numbered as determined by the County; provided that
denominations. of less than $10(,,000 shall be permitted upon a partial redemption of Bonds as
provided in Section 3.06(b) hereof The Bonds shall be designated as the "COUNTY OF
HAWAII IMPROVEMENT LISTRICT NO. 17, KALOKO SUBDIVISION, 2001 SPECIAL
ASSESSMENT REFUNDING BONDS." The Bonds shall mature on such date or dates, bear
interest at such rate or rates, be ;,object to redemption upon such terms and bear such other terms
as shall be set forth in the Issuance Certificate, subject to the limitations provided in Section 2.02
hereof.
Section 3.02. Execution and Authentication.
(a) Execution. The -Bonds shall be signed on behalf of the County by the facsimile
signature of the Mayor of the County and the seal of the County (or a facsimile thereof) shall be
impressed, imprinted, engraved. ~sr otherwise reproduced thereon, and attested by the facsimile
signature of the Director of Finance of the County. In case any one or more of the officers whose
signature shall appear on the Bonds shall cease to be such officer before the Bonds have been
authenticated and delivered by t'~e County (including new Bonds delivered pursuant to the
provisions hereof concerning thG transfer and exchange of Bonds or the replacement of lost,
stolen, destroyed or mutilated Bonds), such Bonds may, nevertheless, be authenticated and
delivered as herein provided, ana-maybe issued as if the persons whose signature shall appear on
the Bonds had not ceased to hold such offices.
(b) Authentication. 'The Bonds shall bear thereon a certificate of authentication, in
the form set forth in Exhibit B hereto. No Bond shall be valid or obligatory for any purpose until
such certificate of authentication shall have been duly executed by the Bond Registrar.
Section 3.03. Security fir Bonds; Nature of Obli ations.
(a) Security for Bonds. Pursuant to the Act and this Ordinance, the Bonds shall be
equally and ratably secured by and payable from the Special Assessments and the Funds and
Accounts established pursuant to this Ordinance (other than the Administrative Expense Account
and the Rebate Fund), without preference or priority of any one Bond over any others, except as
otherwise expressly provided herein. The Funds and Accounts established hereunder (other than
the Administrative Expense Account and the Rebate Fund), including all moneys on deposit
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therein and all income from the investment thereof, shall be held in trust, and are hereby made
subject to an express lien and pledge, for the equal and ratable benefit and security of the
Bondowners, c;xcept as otherwise expressly provided herein.
(b) Nature of Obligations. The Bonds are and shall be special obligations of the
County and shall be payable as o the principal or redemption price thereof and interest thereon
solely from the Special Assessments and the Funds and Accounts subject to the lien and pledge
created hereunder. The principal or redemption price of and interest on the Bonds are not
payable from the general fund of the County. Except with respect to the Special Assessments
and the Funds and Accounts subject to the lien and pledge created hereunder, neither the credit
nor the taxing power of the County is pledged for the payment of the Bonds or their interest, and
no Owner of the Bonds may compel the exercise of the taxing power by the County or the
forfeiture of any of its property. The principal or redemption price of and interest on the Bonds
are not a debt of the County nor a legal or equitable pledge, charge, lien, or encumbrance, upon
any of its property, or upon any of its income, receipts, or revenues, except the Special
Assessments and the Funds and- Accounts subject to the lien and pledge created hereunder.
(c) Refunding Bonds .and Parit~Bonds Permitted. Nothing in this Ordinance shall
preclude: (i) the payment or redemption of any Bonds from proceeds of refunding bonds issued
under the Act or any other law of the State of Hawaii; or (ii) subject to the applicable conditions
and limitations set forth herein (Including, but not limited to, the limitations specified in Section
5.02 hereof), the issuance of Parity Bonds which shall be payable from the Special Assessments
and the Funds and Accounts subject to the lien and pledge created hereunder. In the event that
any Parity Bonds are so issued, such Parity Bonds shall be equally and ratably secured, together
with the Bonds; by the Special Assessments and such Funds and Accounts.
Section 3.04. Re ig strati~an, Transfer and Exchange of Bonds.
(a) Registration of Ownership. Ownership of the Bonds shall be recorded in the
Bond Register to be maintained'~y the Bond Registrar on behalf of the County and shall contain
such information as maybe necessary for the proper discharge of the duties of the Bond Registrar
and Paying Agent hereunder. The County, the Bond Registrar and the Paying Agent may treat
the Owner of a Bond whose name appears on the Bond Register as the absolute Owner of the
Bond for any and all purposes, and the County, the Bond Registrar and the Paying Agent shall
not be affected by any notice to the contrary. The County, the Bond Registrar and the Paying
Agent may rely on the address of a Bondowner as it appears in the Bond Register for any and all
purposes. It shall be the duty of phe Bondowner to give written notice to the Bond Registrar of
any change in the Bondowner's address so that the Bond Register may be revised accordingly.
(b) Registration of Exchange or Transfer. The registration of any Bond may, in
accordance with its terms, be transferred upon the Bond Register by the person in whose name it
is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond for
cancellation at the principal corporate trust office of the Bond Registrar in Honolulu, Hawaii,
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accompanied by delivery of a written instrument of transfer in a form approved by the Bond
Registrar and duly executed by the Bondowner or his or her duly authorized attorney. Bonds
maybe exchanged at the principal corporate trust office of the Bond Registrar for a like
aggregate principal amount of Bonds of other authorized denominations of the same maturity.
The Bond Registrar will not charge the Bondowner for any new Bond issued upon any exchange,
but may require the Bondowner requesting such exchange to pay any tax or other governmental
charge required to be paid with respect to such exchange. Whenever any Bond or Bonds shall be
surrendered for registration of transfer or exchange, the County shall execute and the Bond
Registrar shall- authenticate and deliver a new Bond or Bonds of the same maturity, for a like
aggregate principal amount; provided that the Bond Registrar shall not be required to register
transfers or make exchanges of (i) Bonds for a period of 15 days next preceding any date selected
for redemption of Bonds, or (ii) any Bonds or portions thereof chosen for redemption.
Section 3.05. Payments of Principal, Redemption Price and Interest. The principal or
redemption price of and interest on Bonds shall be payable in lawful money of the United States
of America. Such payments shall be made by the Paying Agent, from funds provided to the
Paying Agent for such payments hereunder, in accordance with the following:
(a) Subject to such agreements with the Securities Depository as maybe in effect at
the time in question: (i) the principal or redemption price of each Bond shall be payable, upon
presentation thereof at the office of the Paying Agent, to the Bondowner in whose name the
ownership of such bond is registered on the Bond Register as of the date of payment; and (ii) the
interest on each Bond shall be payable on each Interest Payment Date by check or draft mailed to
the Bondowner in whose name the ownership of such Bond is registered on the Bond Register, at
the owner's registered address appearing on such Bond Register, as of the immediately preceding
Record Date.
(b) Interest on the Bonds shall be calculated on the basis of a 360-day year comprised
of twelve 30-day months. Interest on any Bond, as so calculated, shall be payable from the
Interest Payment Date next preceding the date of authentication of that Bond, unless (i) such date
of authentication is an Interest P~.yment Date, in which event interest shall be payable from such
date of authentication, (ii) the date of authentication is after a Record Date but prior to the
immediately succeeding Interest Payment Date, in which event interest shall be payable from the
Interest Payment Date immediatc~y succeeding the date of authentication, or (iii) the date of
authentication is prior to the first Interest Payment Date, in which event interest shall be payable
from the date of the Bonds; provided, however, that if at the time of authentication of any Bond,
interest is in default, interest on that Bond shall be payable from the last Interest Payment Date to
which the interest has been paid. or made available for payment. Interest on any Bond shall cease
to accrue on the maturity date or redemption date (if applicable) thereof if funds are available for
the payment or redemption thereof in full accordance with the termas of this Ordinance.
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Section 3.06. Redemption of Bonds. The Bonds shall be subject to redemption prior to
maturity upon such terms as shall be set forth in the Issuance Certificate. In the event of any
such redemption:
(a) Notice of Redemption. Notice of redemption shall be given by the Bond
Registrar, at least 30 days but na more than 60 days prior to the redemption date, by first class
mail, postage prepaid, to the respective Owners of the Bonds to be redeemed at their addresses
appearing on the Bond Register. Such notice shall: (i) identify the Bonds selected for
redemption; (ii) state the date firmed for redemption and the redemption price payable on such
redemption date; (iii) state the place or places where the Bonds are to be redeemed; (iv) in the
case of Bonds to be redeemed only in part, state the portion of the Bond which is to be redeemed;
and (v) state that the applicable: redemption price of each Bond or portion thereof called for
redemption, together with interest accrued to the redemption date, shall be payable on the date
fixed for redemption and, if funds have been provided for such payment in full, that interest on
each Bond or portion thereof to be redeemed shall thereupon cease to accrue. In the case of any
optional redemption of the Bonds (if applicable), if sufficient moneys to redeem the Bonds have
not been deposited with the Paying Agent as of the date of mailing of the notice of redemption,
such notice shall further state that it is subject to the deposit of sufficient moneys for the
redemption as of the opening of business on the redemption date and .shall be of no effect unless
such moneys are so deposited. -The actual receipt by the Owner of any Bond of notice of such
redemption shall not be a condition precedent thereto, and failure to receive such notice shall not
affect the validity of the proceedings for the redemption of such Bonds, or the cessation of
interest on the redemption date.
(b) Selection of Bonds for Redemption. If less than all of the outstanding Bonds are
to be redeemed, the County shall select the Bonds to be redeemed in inverse order of maturity
and by lot within a single maturi}y; provided, however, that (i) the portion of any Bond to be
redeemed shall be in the principal amount of $5,000 or a multiple thereof, (ii) in selecting
portions of such Bonds for redemption, the County shall treat each such Bond as representing
that number of Bonds of $5,000 denominations which is obtained by dividing the principal
amount of such Bond to be redeemed in part by $5,000, and (iii) no redemption in part of any
Bond shall be permitted which reduces the Outstanding principal amount of such Bond below
$100,000, unless no Bonds are then Outstanding in principal amounts greater than $100,000 as a
result of prior redemptions or unless the redemption in question cannot otherwise be effected
without reducing the Outstanding principal amount of one or more Bonds below $100,000.
(c) Partial Redem~tio~~ of Bonds. Upon surrender of any Bond to be redeemed in part
only, the County shall execute and the Bond Registrar shall authenticate and deliver to the
Bondowner, at the expense of the County, a new Bond or Bonds of authorized denominations
equal in aggregate principal amount to the unredeemed portion of the Bond surrendered, with the
same interest rate and the same maturity.
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(d) Effect of Notice: Availability of Redemption Monev. Notice of redemption
having been duly given, as provided herein, and the amount necessary for the redemption having
been made available for that purpose and being available therefor on the date fixed for such
redemption: (i) the Bonds, or portions thereof, designated for redemption shall, on the date fixed
for redemption, become due and,payable at the redemption price thereof as provided in this
Ordinance, an}thing in this Ordinance or in the Bonds to the contrary notwithstanding; (ii) upon
presentation and surrender thereof at the office of the Paying Agent, such Bonds shall be
redeemed at the said redemption price; (iii) from and after the redemption date the Bonds or
portions thereof so designated for redemption shall be deemed to be no longer Outstanding and
such Bonds or portions thereof shall cease to bear further interest; and (iv) from and after the date
fixed for redemption no Owner of any of the Bonds or portions thereof so designated for
redemption shall be entitled to any of the benefits of this Ordinance, or to any other rights, except
with respect to payment of the redemption price and interest accrued to the redemption date from
the amounts so -made available.
Section3.07. Mutilated, Lost, Destroyed or Stolen Bonds. If any Bond shall become
mutilated, the County shall exec~.~te, and the Bond Registrar shall authenticate and deliver, a new
Bond of like tenor and maturity in exchange and substitution for the Bond so mutilated, but only
upon surrender to the Bond Registrar of the Bond so mutilated. Every mutilated Bond so
surrendered to the Bond Registr,~:~- shall be canceled and destroyed and a certificate of destruction
shall be delivered to the County. If any Bond shall be lost, destroyed or stolen, evidence of such
loss, destruction or theft may be submitted to the Bond Registrar and, if such evidence is
satisfactory to the County and, f an indemnity satisfactory to the Bond Registrar and the County
shall be given, the County, at the expense of the Bondowner, shall execute, and the Bond
Registrar shall authenticate and leliver, a new Bond of like tenor and maturity, numbered and
dated as the Bond Registrar shah determine in lieu of and in substitution for the Bond so lost,
destroyed or stolen. Any Bond so issued in lieu of any Bond :alleged to be lost, destroyed or
stolen, shall be equally and proportionately entitled to the benefit hereof with all other Bonds
secured hereby. The Bond Registrar and the County shall not treat both the original Bond and
any duplicate Bond as being Outstanding for the purpose of determining the principal amount of
Bonds which any be executed, a~~thenticated and delivered hereunder or for the purpose of
determining any percentage of Bonds outstanding hereunder. Notwithstanding any other
provision of this Section, in lieu of delivering a new Bond for a Bond which has been mutilated,
lost, destroyed or stolen, and which has matured, the County may make payment with respect to
such Bond upon receipt of an indemnity satisfactory to the County.
Section 3.08. Temporary Bonds. Any Bonds issued under this Ordinance maybe
initially issued in temporary form exchangeable for definitive bonds. The temporary bonds may
be printed, lithographed or typewritten, shall be of such denominations. as maybe determined by
the County and may contain such. reference to any of the provisions of this Ordinance as maybe
appropriate. Every temporary Bond shall be executed and sealed by the County and
authenticated by-the Bond Registrar in substantially the same manner as provided in Section 3.02
hereof. If the County issues temporary Bonds it will execute and furnish definitive Bonds
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without delay and thereupon the temporary Bonds maybe surrendered for cancellation at the
principal corporate trust office of the Bond Registrar, and the County shall deliver in exchange
for such temporary Bonds an equal aggregate principal amount of definitive Bonds of the same
interest rates and maturities. Until so exchanged, the temporary Bonds shall be entitled to the
same benefits under this Ordinance as definitive Bonds issued hereunder.
Section 3.09. Book-Entry Only System. Any provision hereof to the contrary
notwithstanding, the Bonds are. being issued initially as "book entry only" securities under the
book entry registration and transfer system of The Depository Trust Company, New York, New
York ("DTC"), as Securities Depository, subject to the following provisions:
(a) The Bonds shall initially be issued in the form of one fully-registered bond for the
aggregate principal amount of tlb~e Bonds of each maturity, which Bonds shall be registered in the
name of Cede ~ Co., as nomine; of DTC. Except as hereinafter provided, all of the Bonds shall
be registered on the Bond Register in the name of Cede & Co., as nominee of DTC; provided that
if DTC shall request that the Bonds be registered in the name of a different nominee, the Bond
Registrar shall exchange all or any portion of the Bonds for an equal aggregate principal amount
of Bonds registered in the name of such nominee or nominees of DTC. No person other than
DTC or its nominee shall be entitled to receive from the County, the Bond Registrar or the
Paying Agent either a Bond or a~1y other evidence of ownership of the Bonds, or any right to
receive any pag~nent in respect thereof unless DTC or its nominee shall transfer record ownership
of all or any portion of the Bond p on the Bond Register maintained by the Bond Registrar, in
connection with the discontinuation of the book entry system as provided below or otherwise.
(b) So long as the Bonds or any portion thereof are registered in the name of DTC or
any nominee thereof, all payments of the principal or redemption price of or interest on such
Bonds shall be made to DTC or its nominee in same day funds on the dates provided for such
payments under this Ordinance. Each such payment to DTC or its nominee shall be valid and
effective to filly discharge all liability of the County or the Paying Agent with respect to the
principal or redemption price of or interest on the Bonds to the extent of the sum. or sums so paid.
In the event of the redemption of less than all of the Bonds Outstanding of any maturity, the
Paying Agent shall not require surrender by DTC or its nominee of the Bonds so redeemed, but
DTC (or its nominee) may retain such Bonds and make an appropriate notation on the Bond
certificate as to the amount of such partial redemption; provided that DTC shall deliver to the
Paying Agent, upon request, a written confirmation of such partial redemption and thereafter the
records maintained by the Paying; Agent shall be conclusive as to the amount of the Bonds of
such maturity which have been redeemed.
(c) The County, the bond Registrar and the Paying Agent may treat DTC (or its
nominee) as the sole and exclusive; owner of the Bonds registered in its name for the purposes of
payment of the principal or redemption price of or interest on the Bonds, selecting the Bonds or
portions thereof to be redeemed, ~~iving any notice permitted or required to be given to
Bondowners under this Ordinance, registering the transfer of Bonds, obtaining any consent or
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other action to be taken by Bondowners and for all other purposes whatsoever; and the County,
the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. The
County, the Bond Registrar and the Paying Agent shall have no responsibility or obligation to
any participant in DTC, any person claiming a beneficial ownership interest in the Bonds under
or through DTC or any such participant, or any other person which is not shown on the Bond
Register as being a Bondowner, with respect to: (i) the Bonds; or (ii) the accuracy of any records
maintained by DTC or any such participant; or (iii) the payment by DTC or any such participant
of any amount: in respect of the: principal or redemption price of or interest on the Bonds; or (iv)
any notice which is permitted or required to be given to Bondowners under this Ordinance; or
(v) the selection by DTC or any such participant of any person to receive payment in the event of
a partial redemption of the Bonds; or (vi) any consent given or other action taken by DTC as
Bondowner.
(d) In connection with any notice or other communication to be provided to
Bondowners pursuant to this Ordinance by the County, the Bond Registrar or the Paying Agent
with respect to any consent or other action to be taken by Bondowners, DTC shall consider the
date of receipt of notice requesting such consent or other action as the record date for such
consent or other action, provided that the County, the Bond Registrar or the Paying Agent may
establish a special record date for such consent or other action. The County, the Bond Registrar
or the Paying Agent, as applicable, shall give DTC notice ofsuch special record date not less
than 15 calendar days in advance ofsuch special record date to the extent possible.
(e) The book-entry system for registration of the ownership of the Bonds maybe
discontinued at any time if either: (i) DTC determines to resign as Securities Depository for the
Bonds; or (ii) the County determines that continuation of the system of book-entry transfers
through DTC (or through a successor Securities Depository) is not in the best interests of the
County. In either of such even± (unless in the case described in clause (ii) above, the County
appoints a successor Securities ~)epository), the Bonds shall be delivered in registered certificate
form to such persons, and in sucl~> maturities and principal amounts, as maybe designated by
DTC, but without any liability o~~ the part of the County, the Bond Registrar or the Paying Agent
for the accuracy of such designation. Whenever DTC requests the County, the Bond Registrar
and the Paying Agent to do so, ~.aach parties shall cooperate with DTC in taking appropriate
action after reasonable notice to arrange for another Securities Depository to maintain custody of
certificates evidencing the Bond..
ARTICLE N
Funds and Accounts
Section 4.01. Establish~~-cent of Funds and Accounts. The County shall establish and
maintain the following Funds ana Accounts, which shall be held and administered in accordance
with the provisions of this Articic N:
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(a) The Special Assessment Account, Administrative Expense Account and
Reserve Account, which. shall be held by the County within the Special Assessment Fund;
(b) The Rebate Fund, which shall be held by the County outside the Special
Assessment Fund; and
(c) The Cost of Issuance Fund and Bond Payment Fund, which shall be held
by the Paying Agent on behalf of the County.
Each such Fund or Account shall be held separate and apart from, and shall not be commingled
with any other-funds or accounts of the County or the Paying Agent. Subject to the further
provisions of Section 4.07 hereof, all such Funds and Accounts (excepting only the
Administrative Expense Accou-~t and the Rebate Fund) shall be held in trust, subject to an
express lien and pledge hereunder, for the equal and ratable benefit and security of the Bonds and
any Parity Bonds (if issued).
Section x.02. Special Assessment Account.
(a) Upon issuance of the Bonds, an amount equal to the accrued interest on the Bonds
shall be deposited in the Special Assessment Account as provided in Article II hereof.
Thereafter, the County shall, on each date on which the Special Assessments have been collected,
deposit the Special Assessments in the Special Assessment Account. The amounts so deposited
in the Special Assessment Account shall be transferred, in the amounts and at the times
hereinafter provided, to the following funds in the following order of priority:
(1) to the Bond Payment Fund;
(2) to the Reserve Account;
(3) to the Administrative Expense Account; and
(4) to the Rebate Fund.
(b) In the event of any prepayment of Special Assessments, the County shall establish
within the Special Assessment Account a special prepayment subaccount into which it shall
deposit such portion of the prepa~~rnent as is allocable to payments of the principal or redemption
price of and interest on Bonds wl«ch are not due within 13 months after the date of the
prepayment. Moneys shall be wi'hdrawn from such subaccount and deposited into the Bond
Payment Fund, together with other available moneys in the Special Assessment Account, in the
amounts and at the times required: hereunder for payment of the allocable amounts of principal,
redemption price and interest coming due on the Bonds.
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(c) The County shall provide to any Bondowner, upon the Bondowner's written
request, a balance statement for the month then ended of moneys on deposit in the Special
Assessment Account. Any surplus funds remaining in the Special Assessment Account after
final payment of the Bonds chargeable against such Account shall be applied in such manner as
prescribed by Section 12-49 ofthe Act.
Section 4.03. Bond Payment Fund. The Bond Payment Fund shall be held by the Paying
Agent on behalf of the County, subject to the lien and pledge created hereunder. Deposits into
and payments from such Fund shall be made as follows:
(a) On or before the third day prior to an Interest Payment Date (or any redemption
date, if other than an Interest Pa~~rnent Date), the County shall withdraw from the Special
Assessment Account and deposit in the Bond Payment Fund. an amount equal to all of the
principal or redemption price ant? all of the interest then becoming due and payable, or which is
due and unpaid, on the Bonds as~d Parity Bonds, less amounts on hand in the Bond Payment
Fund and available to pay such I~rincipal or redemption price and interest. Notwithstanding the
foregoing, if the County determines, with due regard to the investments of moneys in the Special
Assessment Account, that it is dsirable to delay the making of such withdrawal-and deposit
beyond such third day (but not titer than the opening of business on the applicable Interest
Payment Date or other redemption date), the County shall notify the Paying Agent of such
determination and shall be permitted to make such withdrawal and deposit at or before the
opening of business on the applicable Interest Payment Date or other redemption date. In the
event that sufficient funds for such deposits are not available in the Special Assessment Account,
the County shall withdraw additional moneys for such purpose from the Reserve Account as
provided in Section 4.04 hereof.
(b) Moneys so deposited in the Bond Payment Fund shall be applied by the Paying
Agent, on each Interest Payment Date and on each redemption date (if other than an Interest
Payment Date), to pay the principal or redemption price of and interest on the Bonds and Parity
Bonds coming due on such date If after all of the Bonds and Parity Bonds have been redeemed
and canceled or paid and canceled there are moneys remaining in the Bond Payment Fund, said
moneys shall be transferred to th ;Special Assessment Account; provided that if said moneys are
part of the proceeds of refunding bonds, such moneys shall be applied as otherwise provided in
accordance with the terms upon which such refunding bonds are issued.
Section 4.04. Reserve Account. The Reserve Account shall be held by the County
within the Special Assessment Fund, subject to the lien and pledge created hereunder. Deposits
into and withdrawals from the Reserve Account shall be made as follows:
(a) Upon the issuance of the Bonds, an amount representing the Reserve
Requirement, as specified in the Issuance Certificate, shall be deposited into the Reserve
Account. In addition, in the event that moneys are withdrawn from the Reserve Account to cure
a deficiency in he Bond Payment Fund (as hereinafter provided), Special Assessments thereafter
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.
deposited in the Special Assessment Account shall be transferred to the Reserve Account to the
extent necessary to restore the I<eserve Account to the Reserve Requirement.
(b) If moneys in the :Bond Payment Fund are insufficient to pay the principal or
redemption price (upon mandatory sinking fund redemption, if applicable) of and interest on the
Bonds and any Parity-Bonds on any Interest Payment Date (after taking into account the moneys
in the Special Assessment Account available for transfer to the Bond Payment Fund) ,the County
shall withdraw from the Reser~.w Account and deposit in the Bond Payment Fund moneys
necessary to cure the deficiency, In addition, on June 30 of each Fiscal Year, commencing on
June 30, 2002, the County shall determine the value (on the basis of the lesser of market value or
historical cost) of the investments in the Reserve Account and moneys in the Reserve Account in
excess of the Reserve Requirement shall be withdrawn from the Reserve Account by the County
and thereafter deposited in the special Assessment Account. Moneys in the Reserve Account
may also be used to pay the principal of and interest on the last outstanding maturity of the Bonds
or any Parity Bonds.
Section 4.05. Administrative Expenses; Issuance Costs.
(a) T`he Administrative Expense Account shall be held by the County within the
Special Assessment Fund, but outside the lien and pledge created hereunder. On August 1 of
each Fiscal Year, commencing o~~ August 1, 2002, the County shall withdraw from the Special
Assessment Account and deposit in the Administrative Expense Account an amount necessary to
pay or reimburse the County for all Administrative Expenses for the then current Fiscal Year, and
shall be used fof such purpose at such times and in such amounts as shall be determined by the
County. All income from the investment of moneys in the Administrative Expense Account
shall be retained in such Account and applied to the foregoing payments therefrom.
(b) The Cost of Issuance Fund shall be held by the Paying Agent on behalf of the
County, subject to the lien and pledge created hereunder. Upon the issuance of the Bonds, an
amount representing the estimated costs of issuance for the Bonds, as specified in the Issuance
Certificate, shall be deposited int;:~ the Cost of Issuance Fund and thereafter applied by the Paying
Agent to the payment of such costs at the direction of the Director of Finance.
Section 4.06. Rebate Fund. The Rebate Fund shall be established and maintained by
the County outside the lien and pledge created hereunder. The County shall deposit into the
Rebate Fund such amounts (if a_n~=) of excess investment income, as calculated pursuant to
Section 5.03 hereof, as are required to be rebated to the United States Treasury in accordance
with Section 148 of the Code. Tl~e County shall apply the amounts so deposited in the Rebate
Fund, together;~aTith the investment income thereon (which shall be retained therein), to make the
required rebate payments at the times and in the manner required by Section 148 of the Code.
The County agrees to keep and maintain all records required to be maintained by it with respect
to such rebate requirements as and. to the extent required by the Code.
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Section 4.07. Moneys to Be Held for All Bondholders, With Certain Exceptions. Until
applied as herein provided, moneys and investments held in all Funds and Accounts established
hereunder shall be held in trust for the benefit of the holders of all Outstanding Bonds, except
that: (a) on and after the date oz which the interest on or principal or redemption price of any
particular Bond or Parity Bond: is due and payable from the Bond Payment Fund, the unexpended
balance of the amount deposited or reserved therein for the making of such payments shall, to the
extent necessary therefor, be held for the benefit of the Bondowner entitled thereto; (b) any
special redemption fund established in connection with the issuance of any refunding bonds shall
be held for the <benefit of the hcsl.ders of Bonds or Parity Bonds being refunded or, in the event of
any surplus, shall be applied as otherwise provided in accordance with the terms upon which
such refunding bonds are issued; and (c) the Administrative Expense Account and the Rebate
Fund shall be 12e1d outside the lien and pledge created hereunder.
Section 4.08. Additional Funds and Accounts. In addition to the Funds and Accounts
(inclusive of any special subaccounts, if applicable) specifically required to be established
hereunder, additional Funds and Accounts maybe established at the direction of the Director of
Finance if such officer determines that the establishment of such additional Funds and Accounts
is reasonably necessary, whether in connection with the issuance of any series of Parity Bonds or
otherwise, to facilitate the administration of deposits, withdrawals or investments of funds
hereunder; provided that, except as otherwise provided in Section 4.07 hereof, all such additional
Funds and Accounts shall be held in trust for the equal and ratable benefit and security of all
Bonds and Parity Bonds.
Section 4.09. Investments. Moneys on deposit in any Fund or Account hereunder shall
be invested in Authorized Investments; provided Authorized Investments in the Rebate Fund
shall be limited to direct obligations of, or obligations fully and unconditionally guaranteed by
the United States of America. The Authorized Investments in each Fund or Account shall mature
or be subject to redemption, repurchase or withdrawal, without penalty, at the option of the
holder, on or before the dates or;= which the amounts invested are reasonably expected to be
needed for the purposes of the F.~nd or Account in question. Such Authorized Investments in
each Fund or Account shall be deemed to be part of such Fund or Account and, for the purpose
of determining at any given time the balance in any such Fund or Account, any such investments
constituting a part of such funds and accounts shall be valued at the lesser of their market value
or cost. Except as otherwise provided herein, all investment earnings on moneys held under this
Ordinance steal: be deposited into the Special Assessment Account.
ARTICLE V
Certain Covenants
Section 5.01. Covenant..=y Regarding Payment of Bonds. So long as any of the Bonds
issued hereunder are outstanding. and unpaid, the County makes the following covenants with
the Bondowners under the provisions of the Act and this Ordinance (to be performed by the
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County or its proper officers, agents or employees), which covenants are necessary, convenient
and desirable to secure the Bonds and tend to make them more marketable; provided, however,
that said covenants do not requi7-e the County to expend any funds or moneys other than the
Special Assessments.
(a) Punctual Pa r~rient. The County covenants that it will duly and punctually pay or
cause to be paid the principal of and interest on every Bond issued hereunder, together with the
premium thereon, if any be payable, on the date, at the place and in the manner mentioned in the
Bonds and in accordance with this Ordinance to the extent Special Assessments and moneys in
the Funds and Accounts established hereunder are available therefor, and that the payments into
the Bond Payment Fund and the Reserve Account will be made, all in strict conformity with the
terms of the Bonds and this Ordinance, and that it will faithfully observe and perform all of the
conditions, covenants and requirements of this Ordinance and all ordinances supplemental hereto
and of the Bonds issued hereunder, and that time of such payment and performance is of the
essence of the County's contract with the Bondowners.
(b) Levy of Special Assessments. The County Council of the County shall levy
Special Assessments to pay principal, interest and Administrative Expenses of the Bonds and any
Parity Bonds and to replace moneys withdrawn from the Reserve Account in order to maintain
the Reserve Account at the Rese~we Requirement subject to the terms and conditions of the
Ordinance.
(c) Foreclosure Proceedings. The County covenants for the benefit of the Owners of
the Bonds that a.t will commence appropriate foreclosure proceedings as authorized by the Act
within 120 days after failure to receive payment of a Special Assessment installment, or portion
thereof, when due.
Section 5.02. .Limits on Parity Debt. The County covenants that, except for bonds
issued for refunding purposes, no additional Parity Bonds shall be authorized or delivered unless
the following conditions are satisfied:
(a) The County is not in default under the terms of this Ordinance.
(b) The County obtains the appraisal of a qualified appraiser showing that the fair
market value of the Improvement District is sufficient so that the total principal of and interest on
the Outstanding Bonds and Parity Bonds, including proposed Parity Bonds is not more than
twenty-five percent (25%) of the total value of the land within the boundaries of the
Improvement District.
(c) An opinion of Bond Counsel to the effect that the issuance of such Parity Bonds
will not adversely affect the exclusion from gross income for federal income tax purposes of
interest on the Bonds or the exemption from State of Hawaii personal income taxation of
interest on the Bonds.
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(d) Principal will mature and interest will be paid with respect to such Parity Bonds
on the same dates as the Bonds.
Section 5.03. Tax Covenants. The County hereby covenants that it will make no use of
the proceeds of the Bonds or take or fail to take any action which would cause the Bonds to
become "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the
Code. To that end, the County shall comply with all applicable requirements of said Section 148
and all regulations of the United: States Department of the Treasury issued thereunder, to the
extent imposed as a condition spa continued exclusion from gross income of interest on the
Bonds. Without limiting the generality of the foregoing, the County shall calculate (or cause to
be calculated), annually or as otherwise required by Section 148 of the Code, such amounts of
excess investment income as arc required to be rebated to the United States Treasury pursuant to
Section 148 of the Code and sh~11 deposit such amounts, if any, into the Rebate Fund and make
payments to the United States Treasury from such Fund in accordance with the provisions of
Section 4.06 hereof.
ARTICLE VI
Paying Agent and Bond Registrar
Section 6.01. Pa i~ng ~4;gent and Bond Re isg trar.
(a) Appointment and Acceptance. The County hereby appoints Bank of Hawaii,
acting through its Pacific Century Trust division, as Bond Registrar and Paying Agent for the
Bonds hereunder. The Bond Registrar and Paying Agent shall accept such appointment in
writing prior to he initial delivery of the Bonds.
(b) Removal. The Paying Agent and Bond Registrar initially appointed, and any
successor thereto, may be removed by the County and a successor or successors maybe
appointed; provided that such successor or successors shall be a bank or a trust company doing
business in and having an office n the city where the predecessor did business and had an office.
The County sh~11 compensate the Paying Agent and Bond Registrar for the performance of their
services hereunder and such compensation shall be an Administrative Expense and be payable
only from the Administrative Expense Account.
(c) Resignation. The Paying Agent and/or Bond Registrar appointed hereunder may
resign at any time upon 90 days' written notice and after appointment of a successor. If the
County does not appoint a successor Paying Agent and/or Bond Registrar within ninety (90) days
following the giving of any notice; of removal or receipt of any notice of resignation, the removed
or resigning Paying Agent and/or Bond Registrar may petition at the expense of the County any
appropriate court having jurisdiction to appoint a successor Paying Agent and/or Bond Registrar.
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(d) Merger, Consolidation or Reorganization. Subject to the foregoing provisions
regarding the removal or resignation of the Bond Registrar and Paying Agent, upon merger, -
consolidation, or reorganization of the Bond Registrar and/or Paying Agent, the surviving
corporation upon such merger or the corporation resulting from such consolidation or
reorganization shall succeed to the duties and responsibilities of the Bond Registrar and/or
Paying Agent hereunder.
ARTICLE VII
Supplemental Ordinances
Section 7.01. Supplemental Ordinances or Orders Without Bondowners' Consent. The
County may from time to time:, and at any time, without notice to or consent of any of the
Bondowners, adopt ordinances or orders supplemental hereto for any of the following purposes:
(a) to cure any ambiguity, to correct or supplement any provision herein which maybe
inconsistent with any other provision herein, or to make any other provision with respect to matters
or questions arising under this Ordinance or in any additional ordinance or order, provided that such
action shall not- adversely affect the interests of the Bondowners;
(b) to add to the covenants and agreements of and the limitations and the restrictions
upon the County contained in this Ordinance, other covenants, agreements, limitations and
restrictions to be observed by :the County which are not contrary to or inconsistent with this
Ordinance as theretofore in effect;
(c) to provide for the issuance of Parity Bonds hereunder and, in connection therewith,
to modify or supplement the provisions hereof as reasonably necessary or desirable to provide for
the proper administration of sucl'~ Parity Bonds and to secure the same hereunder on an equal and
ratable basis with the Bonds; and
(d) to modify, alter, amend or supplement this Ordinance in any other respect which is
not adverse to the interests of the Bondowners.
Section 7.02. Supplemental Ordinances or Orders Reduirin~ Bondholders' Consent.
(a) Except as provided in Section 7.01 hereof, the Owners of not less than 60% in
aggregate principal amount of the Bonds then Outstanding shall have the right to consent to and
approve the adoption by the County of such ordinances or orders supplemental hereto as shall be
deemed necessary or desirable icy the County for the purpose of waiving, modifying, altering,
amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this
Ordinance; provided, however, that the consent and approval of the Owners of 100% in aggregate
principal amount of the Bonds then Outstanding shall be required for (i) any extension of the
maturity date of the principal of, or the payment date of interest on, any Bond, (ii) any reduction in
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the principal amount of, or redemption premium on, any Bond or the rate of interest thereon, (iii) any
preference or priority of any Bond or Bonds over any other Bond or Bonds, (iv) any reduction in the
aggregate principal amount of the Bonds the Owners of which are required to consent to such
ordinance or order, without the consent of the Owners of all Bonds then outstanding, or (v) the
creation of a pledge of or lien or charge upon the Special Assessments superior to the pledge of
Special Assessments pursuant to Section 3.03 hereof.
(b) If at any time the County shall desire to adopt a ordinance or order supplemental
requiring the consent ofBondowners, the County shall so notify the Bond Registrar and shall deliver
to the Bond Registrar a copy of the proposed ordinance or order. The Bond Registrar shall, at the
expense of the County, cause notice of the proposed ordinance or order to be mailed, postage
prepaid, to all Bondowners at thei E addresses as they appear in the Bond Register. Such notice shall
briefly set forth he nature of the proposed ordinance or order and shall state that a copy thereof is
on file at the office of the Bond Registrar for inspection by all Bondowners. The failure of any
Bondowner to receive such notice shall not affect the validity of such ordinance or order when
consented to and approved by the requisite percentage of Bondowners. Whenever at any time within
one year after 'he date of the hest mailing of such notice, the Bond Registrar- shall receive an
instrument or instruments purporting to be executed by the Owners of the requisite percentage of
Outstanding Bonds, which instrument or instruments shall refer to the proposed ordinance or order
described in such notice, and shill specifically consent to and- approve the adoption thereof by the
County, such proposed ordinance: or order, when duly adopted by the County, shall be deemed
effective for all. purposes hereur.~der. In determining whether the requisite consents have been
obtained, Bonds which are owned by the County or by any person directly or indirectly controlling
or controlled by or under the direct or indirect common control with the County as certified by the
County, upon which the Bond Registrar may rely, shall be disregarded and shall be treated as though
they were not outstanding for the purpose of any such determination.
(c) Upon the adoption of any ordinance or order supplemental hereto and the receipt of
all requisite consents of Bondown-ors, this Ordinance shall be, and shall be deemed to be, modified
and amended in accordance there~~~ith, and the respective rights, duties and obligations under this
Ordinance ofthe-County and all Owners ofBonds then outstanding shall thereafter be determined,
exercised and enforced hereunder, subject in all respects to such modifications and amendments.
ARTICLE VIII
Defeasance
Section 8.01. Defeasance. If all outstanding Bonds shall be paid and discharged in any one
or more of the following ways:
(a) by paying or causing to be paid the principal of and interest with respect to all Bonds
outstanding, as and when the same become due and payable;
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(b) by depositing with the Paying Agent, in trust, at or before maturity, money which,
together with the amounts then on deposit in the Bond Payment Fund, is fully sufficient to pay the
principal of and interest on all Bonds outstanding as and when the same shalt become due and
payable; or
(c) by depositing with the Paying Agent, in trust, direct obligations of, or obligations
guaranteed by, the United States of America, in which the County may lawfully invest its money,
in such amount as will, together with the interest to accrue thereon and moneys then on deposit in
the Bond Payment Fund together with the interest to accrue thereon, be fully sufficient to pay and
discharge the principal of and interest on all Bonds outstanding as and when the same shall become
due and payable;
then, at the election of the County, and notwithstanding that any Bonds shall not have been
surrendered for payment, all obligations of the County under this Ordinance with respect to all
outstanding Bonds shall cease and terminate, except for the obligation of the Paying Agent to pay
or cause to be paid to the Owners of the Bonds not so surrendered and paid, all sums due thereon.
Notice of such election shall be died with the Paying Agent. Any funds held by the Paying Agent,
at the time of receipt of such notice from the County, which are not required for the purpose above
mentioned, shall be paid over to the Special Assessment Account.
Section 8.02. Cancellation of Bonds. All Bonds surrendered to the Paying Agent for
payment upon :maturity or for r~°demption shall upon payment thereof be stamped "canceled"
immediately and such canceled -Bonds shall be kept in the possession of the Paying Agent. Any
Bond purchase€l. by the County xis authorized herein shall be delivered to the Paying Agent and
canceled forthwith and shall not be reissued.
ARTICLE IX
Events of Defaults and Remedies
Section 9.01. Events of Default. Any one or more of the following events shall constitute
an "event of default":
(a) Default in the due annd punctual payment of the principal or redemption price of any
Bond when and as the same shall become due and payable, whether at or prior to maturity;
(b) Default in the duo and punctual payment of the interest on any Bond when and as the
same shall become due and payable; or
(c) Default shall be made by the County in the observance of any of the agreements,
conditions or covenants on its pas
~ contained in this Ordinance or in the Bonds, and such default
shall have continued for a period of thirty (30) days.
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Section 9.02. Remedie ~ of Owners. Following the occurrence of an event of default (as
defined in Section 9.01 hereof), any Owner shall have the right for the equal benefit and protection
of all Owners similarly situated:
(a) By mandamus or other suit or proceeding at law or in equity to enforce his rights
against the County and any of tl~e members, officers and employees of the County, and to compel
the County or any such members; officers or employees to perform and carry out their duties under
the Act and their agreements with the Owners as provided in this Ordinance;
(b) By suit in equity to enjoin any actions or things which are unlawful or violate the
rights of the Owners; or
(c) By suit in equity to require the County and its members, officers and employees to
account as the trustee: of an express trust.
Section 9.03. Effect of ~~Iaiver,-Delay or Omission. No waiver of any default or breach of
duty or contract by any Owner shall affect any subsequent default or breach of duty or contract, or
impair any rights or remedies on any such subsequent default or breach. No delay or omission by
any Owner to exercise any right ~?r power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver of any such default or an acquiescence therein, and every
power and remedy conferred upon the Owners by the Act or by this Section maybe enforced and
exercised from time to time and ~ often as shall be deemed expedient by the Owners.
Section 9.04. Remedies Non-Exclusive and Cumulative. No remedy herein conferred upon
or reserved to the Owners is intended to be exclusive of any other remedy. Every such remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing, at law or in equity or by>.~tatute or otherwise, and maybe exercised without exhausting and
without regard to any other remedy conferred by the Act or any other law.
Section 9.05. Application of Moneys upon Payment Default. If a default in payment has
occurred under Section 9.01(al or (b) hereof and a Bondowner prevails in an action, suit or
proceeding brought ortaken to enforce payment of the defaulted sum, payment of the defaulted sum
(together with reasonable costs, f;:,es and expenses payable as provided in Section 8.06 hereof) shall
be made solely from the Specia': Assessments and the Funds .and Accounts subject to the lien and
pledge created hereunder. If such Special Assessments and Funds and Accounts are insufficient to
make such payment in full, then all available amounts shall first be applied to the costs, fees and
expenses, and then be applied to the payment of the defaulted sums without preference or priority
of any defaulted payment of principal, redemption price or interest over any other defaulted payment.
Section 9.06. Costs of Enforcement. If a Bondowner shall prevail in any suit, action or
proceeding to enforce any right or exercise any remedy brought or taken hereunder, such Bondowner
shall be entitled to receive, but solely from the Special Assessments and the Funds and Accounts
-24-
subject to the lien and pledge created hereunder, reimbursement for reasonable costs, fees and
expenses (including reasonable attorneys' fees) incurred in connection with the suit, action or
proceeding in question.
Section 9.07. Abandonment ofProceedin~s. If any suit, action or proceeding to enforce any
right or exercise any remedy is :abandoned or determined adversely to the Owners, the County and
the Owners shall be restored to their former positions, rights and remedies as if such suit, action or
proceeding had not been brought or taken.
ARTICLE X
Miscellaneous Provisions
Section 10.01. Execution of Documents and Proof of Ownership. Any request, direction,
consent, revocation of consent, or other instrument in writing required or permitted by this Ordinance
to be signed or executed by Bondowners may be in any number of concurrent instruments of similar
tenor, and may be signed or executed by such owners in person or by their attorneys appointed by
an instrument in writing for that purpose, or by any bank, trust company or other depository for such
Bonds. Proof ~~f the execution of any such instrument, or of any instrument appointing any such
attorney, and ofthe ownership ofT3onds shall be sufficient for the purposes of this Ordinance (except
as otherwise herein provided), if made in the following manner:
(a) The fact and date of the execution by any Owner or his attorney of any such
instrument and of any instrument appointing any such attorney, may be proved by a signature
guarantee of any bank or trust company located within the United States of America. Where any
such instrument is executed by an officer of a corporation or association or a member of a
partnership on behalf of such corporation, association or partnership, such signature guarantee shall
also constitute sufficient proof of his authority.
(b) As to any Bond, the person in whose name the same shall be registered in the Bond
Register shall be deemed and regarded as the absolute Owner thereof for all purposes, and payment
of or on account of the principal of any such Bond, and the interest thereon, shall be made only to
or upon the order of the registered-Owner thereof or his legal representative. All such payments shall
be valid and effectual to satisfy and discharge the liability upon such Bond and the interest thereon
to the extent of the sum or sums so paid. The Paying Agent and Bond Registrar shall not be affected
by any notice to the contrary.
(c) Nothing. contained in this Ordinance shall be construed as limiting the Paying Agent
and Bond Registrar to such proof, it being intended that the Paying Agent and Bond Registrar may
accept any other evidence of the matters herein stated which the Paying Agent and Bond Registrar
-25-
may deem sufficient. Any request or consent of the Owner of any Bond shall bind every future
Owner of the same Bond in resp~;ct of anything done or suffered to be done by the Paying Agent and
Bond Registrar in pursuance of .such request or consent.
Section 10.02. Provisions Constitute Contract. The provisions of this Ordinance and the
Bonds shall constitute a contract between the County and the Bondowners and the provisions hereof
and thereof shall be enforceabic by any Bondowner for the equal benefit and protection of all
Bondowners similarly situated by mandamus, accounting, mandatory injunction. or any other suit,
action or proceeding at law or ire equity that is now or may hereafter be authorized under the laws
of the State of Hawaii in any court of competent jurisdiction. Said contract is made under and is
to be construed in accordance with the laws of the State of Hawai `i.
Section 10.03. Unclaimed Funds. Notwithstanding anyprovisions ofthisOrdinance, subject
to applicable state escheat laws; any moneys held by the County or Paying Agent in trust for the
payment of the principal or premium, if any, or interest on, any Bonds and remaining unclaimed for
six years after the principal of all of the Bonds has become due and payable (whether at maturity or
upon call for redemption or by declaration as provided in this Ordinance), if such moneys were so
held at such date:, or six years after the date of deposit of such moneys if deposited after said date
when all of the -Bonds became due and payable, shall be repaid to the County free from the lien
created by this Ordinance, and x:11 liability of the Paying Agent with respect to such moneys shall
thereupon cease and the Bondowners shall upon such payment look only to the County for payment;
provided, however, that before the repayment of such moneys to the County as aforesaid, the Paying
Agent may (at the cost of the Coa:~.nty) first publish at least once in a financial newspaper or journal
a notice, in such form. as may be deemed appropriate by the Paying Agent, with respect to the
provisions relating to the repaymf~nt to the County of the moneys held for the payment thereof.
Section 10.04. Severability. If any covenant, agreement or provision, or any portion thereof,
contained in this Ordinance, or the application thereof to any person or circumstance, is held to be
unconstitutional, invalid or unenforceable, the remainder of this Ordinance and the application of
any such covenant, agreement or provision, or portion thereof, to other persons or circumstances,
shall be deemed severable and shall not be affected thereby, and this Ordinance and the bonds issued
pursuant hereto -shall remain valid and the Bondowners shall retain all valid rights and benefits
accorded to them under this Ordinance and the Constitution and Laws of the State of Hawaii.
Section 1.0.05. General Authorization. The Mayor and the Director of Finance are hereby
each respectively authorized to ;c~lo and perform from time to time any and all acts and things
consistent with this Ordinance necessary or appropriate to carry the same into effect.
-26-
Section 10.06. Effective Date. This Ordinance shall take effect upon approval.
Introduced by:
ouncil Member, County of Hawaii
Hilo , Hawai `i
Date of Introduction: November 21, 2001
Date of First Reading: November 21, 2001
Date of Second Reading: December 5, 2001
Effective Date: December 17, 2001
Reference Comm.: 4 I S .15
-27-
OFFICE OF THE COUNTY CLERK
County of Hawaii
xi10 ,Hawaii
(DRAFT 2.) _
-
RQ~I:,:G C~.LL•-.~VOTE
Introduced By: Aaron Chung AYES NOES ABS EX
Date Introduced: November 21, 2001 Arakaki ~ X
First Reading: November 21, 2001 Chung X
Published: December 2, 2001 Elarionoff X
Jacobson X
REMARKS: Leithead-Todd X
Pisicchio X
Safarik X
Tyler X
Yagong X
9 0 0 0
(DRAFT 4)
Second Reading: December 5, 2001 ROLL CALL VOTE
To Mayor: December 12, 200I AYES NOES ABS EX
Returned: December 18. 2001 Arakaki X
Effective: December 17, 2001 Chung X
Published: January 1, 2002 Elarionoff X
Jacobson X
REMARKS: Leithead-Todd X
Pisicchio X
Safarik X
Tyler X
Yagong X
9 0 0 0
1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as
indicated above.
APPROVED AS TO
CORM AR1D LEGALITY:
CIL CNA/RMAN
rr.GoC ~~~-~---~-d-
l.,J ~~I,~ B~EP ~ CORPORATION COUNSEL
COU TY OF HAWAII
COUNTY CLERK
Date - - -
131 (DRAFT 4)
Bill No.:
C-418.12
Appro d/Disapprnved this (1 day Reference:
~.~Gt.y~b.~, Ord N o.: ~ ~
of ,20dE
MA YOR, UNTY OL' HAWAII
Exhibit A
IMPROVEMENT DISTRICT 17 (KALOKO SiJBDIVISION)
REVISED ASSESSMENT ROLL*
Asst. No. TMK Lot No. Value % of Value ®wner**
1 7-3-009-017 7A $1,708,124.37 16.8040% MID Corporation
2 7-3-009-025 7B 2,728,932.50 26.8464% MID Corporation
3 7-3-009-026 7C-A 1,487,166.42 14.6303% MID Corporation
4 7-3-051-001 7D-A 0.00 0.0000%
5 7-3-051-065 7D-B1 13,758.89 0.1354% William L. Minson and
Dixie K. Minson
6 7-3-051-092 7D-C31 10,696.57 0.1052% TSA Corporation
7 7-3-051-063 7D-D 0.00 0.0000%
8 7-3-051-064 7D-E 0.00 0.0000%
9 7-3-051-060 7D-F 1,032,154.68 10.1540% TSA Corporation
10 7-3-051-999 7D-Ci 0.00 0.0000%
11 7-3-051-066 7D-B2 12,235.82 0.1204% TSA Corporation
12 7-3-051-067 7D-B3 10,909.72 0.1073% TSA Corporation
13 7-3-051-068 7D-B4 10,088.06 0.0992% TSA Corporation
14 7-3-051-069 7D=1~5 10,790.12 0.1061% TSA Corporation
15 7-3-051-070 7D-136 0.00 0.0000%
16 7-3-051-071 7D-T37 10,114.79 0.0995% Home Depot USA, Inc.
17 7-3-051-072 7D-.38 10,792.71 0.1062% Home Depot USA, Inc.
18 7-3-051-073 7D-139 13,101.64 0.1289% Home Depot USA, Inc.
19 7-3-051-074 7D-B11 12,131.31 0.1193% Home Depot USA, Inc.
20 7-3-051-075 7D-P 12 10,048.56 0.0989% Home Depot USA, Inc.
A-1
Asst. No. TMK Lot No. Value % of Value ®wner**
21 7-3-051-076 7D-B13 10,061.12 0.0990% Home Depot USA, Inc.
22 7-3-051-077 7D-B 14 10,074.89 0.0991 % Home Depot USA, Inc.
23 7-3-051-078 7D-815 12,695.86 0.1249% Home Depot USA, Inc.
24 7-3-051-079 7D-B16 12,066.20 0.11.87% Home Depot USA, Inc.
25 7-3-051-080 7D-B17 10,457.75 0.1029% Home Depot USA, Inc.
26 7-3-051-081 7D-B 18 10,046.92 0.0988% Home Depot USA, Inc.
27 7-3-051-082 7D,I319 10,132.39 0.0997% TSA Corporation
28 7-3-051-083 7D=1320 10,115.59 0.0995% Honsador Lumber
Corporation
29 7-3-051-084 7D-B21 13,059.42 0.1285% TSA Corporation
30 7-3-051-085 7D-1323 11,731.44 0.1154% TSA Corporation
31 7-3-051-086 7D-I324 0.00 0.0000%
32 7-3-051-087 7D-825 10,129.45 0.0997% Alexander P Kreig and Sung
Hon Chung
33 7-3-051-088 7D-B26 10,250.63 0.1008% Stacy N. Hutchison-Miller
34 7-3-051-089 7D-827 10,279.58 0.1011% Taylor Family Limited
Partnership
35 7-3-051-090 7D-B28 11,379.27 0.1119% Taylor Family Limited
Partnership
36 7-3-051-091 7D-B29 11,576.80 0.1139% Piilani, LLC
37 7-3-051-061 7D-B30 20,101.41 0.1978% Kailua-Kona Self Storage,
LLC
38 7-3-051-093 7D-C32 10,819.78 0.1064% TSA Corporation
39 7-3-051-094 7D-C;33 10,697.26 0.1052% TSA Corporation
40 7-3-051-095 7D-C34 10,696.83 0.1052% TSA Corporation
41 7-3-051-096 7D-C35 10,696.83 0.1052% Charles Clarke and Katy
Clarke, as Trustees
42 7-3-051-097 7D-C36 10,696.83 0.1052% TSA Corporation
43 7-3-051-098 7D-B37 0.00 0.0000%
44 7-3-051-098 7D-B38 0.00 0.0000%
45 7-3-051-062 7D-C39 0.00 0.0000%
46 7-3-051-062 7D-C40 0.00 0.0000%
A-2
Asst. No. TMK Lot No. Value % of Value Owner**
47 7-3-051-062 7D-C41 0.00 0.0000%
48 7-3-051-062 7D-C42 0.00 0.0000%
49 7-3-051-062 7D-C44 0.00 0.0000%
50 7-3-009-028 7GB 2,846,187.59 27.9999% MID Corporation
FINAL TOTAL 10,165,000.00 100.00%
In addition to the above, each monthly payment shall be subject to a collection charge equal to the
greater of One Dollar ($1.00) and one-half of one percent of such payment, principal and interest.
*Values are based on $.10,165,000-maximum principal amount of refunding bonds, subject topro-rata
reduction to the extent that a lower principal amount of bonds is issued. Amounts shown do not reflect
prepayments (if any) subsequent o December 1, 2001.
**Owners of properties with outstanding assessments.
A-3
EXHIBIT B
Form of Bond
No. $
UNITED STATES OF AMERICA
STATE OF HAWAII
COUNTY OF HAWAII
COUNTY OF I-IAWAI`I IMPROVEMENT DISTRICT NO. 17,
KALOKO SUBDIVISION, 2001 SPECIAL ASSESSMENT REFUNDING BOND
INTEREST MATURITY DATED CUSIP NO.
RATE D<~TE DATE
REGISTERED OWNER:
PRINCIPAL AMOUNT:
COUNTY OF I-IAWAI`I IMPROVEMENT DISTRICT NO. 17, KALOKO SUBDIVISION
(the "District") situated in the Co~.~nty of Hawaii, State of Hawaii (the "County"), FOR VALUE
RECENED, hereby promises to pay, solely from Special Assessments (as hereinafter defined) and
certain funds and accounts established pursuant to the Ordinance (as hereinafter defined), to the
registered owner named above, or registered assigns, on the maturity dated set forth above, unless
redeemed prior thereto as hereina~'Ier provided, the principal amount set forth above, and to pay
interest on such principal amount from the above dated date or from the most recent interest payment
date to which interest has been paid or duly provided for, semiannually on and of each
year, commencing , 2002, at the interest rate set forth above, until the principal amount
hereof is paid or made available for payment. The principal of and premium, if any, on this Bond
are payable to the registered owner hereof in lawful money of the United States of America upon
presentation and surrender of this- Bond at the principal corporate trast office of Bank of Hawaii,
acting through it:~ Pacific Century Trust division, Honolulu, Hawaii, as paying agent and bond
registrar (in such- capacities, the "Paying Agent" and the "Bond Registrar"). Interest on this Bond
shall be paid by check or draft of the Paying Agent mailed by first class mail to the registered owner
hereof as of the close of business can the 15`h day of the month preceding the interest payment date
(the "Record Datc") at such registered owner's address as it appears on the registration books
B-1
maintained by the Bond Registrar. Interest shall be calculated on the basis of a 360-day year of 12
thirty-day months.
This Bond is one of the duly authorized issue of "County of Hawaii, Improvement District
No. 17, Kaloko Subdivision, 2001 Special Assessment Refunding Bonds" (the `°Bonds") issued in
the aggregate principal amount of $ pursuant to Chapter 12 of the Hawai `i County
Code (1983), as amended, (the "Act") for the purpose of refunding a certain priox series of special
assessment bonds issued by the County for the District. The issuance of the Bonds and the terms and
conditions thereof are provided: 4or by an Ordinance adopted by the County Council of the County
on , 2001 (the "Ordinance"), and this reference incorporates the Ordinance
herein, and by acceptance hereof the owner of this Bond assents to said terms and conditions. The
Ordinance is adopted under, this. Bond is issued under, and both are to be construed in accordance
with the laws of the State of Hawaii.
Pursuant to the Act and the Ordinance, the principal of, premium, if any, and interest on this
Bond are payable solely from, and shall be secured by a pledge, charge and lien upon (a) the annual
special assessments authorized under the Act to be levied and collected within the District, and the
proceeds of any sale of property upon foreclosure pursuant to the Ordinance (the "Special
Assessments") and (b) certain funds and accounts established pursuant to the Ordinance.
Any assessment for the payment hereof shall be limited to the Special Assessments. The
Bonds do not constitute obligations of the County or the District for which the County or the District
is obligated to levy or pledge, er has levied or pledged, general or special taxation or assessments
other than as described hereinabave. The County has covenanted for the benefit of the owners of
the Bonds that itwill commence appropriate foreclosure proceedings as authorizedby the Act within
120 days in the event of delinquencies of any Special Assessments levied for payment of principal
and interest on the Bonds.
[REDEMPTION PROVISIONS TO BE INSERTED]
Notice of redemption with respect to the Bonds to be redeemed shall be given to the
registered owners thereof, in the manner, to the extent and subject to the provisions ofthe Ordinance.
This Bond shall be registered in the name of the owner hereof, as to both principal and
interest.
Each registration and transfer of registration of this Bond shall be entered by the Bond
Registrar in books kept by it for That purpose and authenticated by its manual signature upon the
certificate of authentication endorsed hereon.
No transfer hereof shall be valid for any purpose unless made by the registered owner or his
legal agent, by dxecution of the firm of assignment endorsed hereon, and authenticated as herein
provided, and the principal hereof interest hereon and any redemption premium shall be payable
only to the registered owner or to such owner's order. Interest on this Bond shall be payable to the
person whose name appears upon-the registration books as the registered owner hereof as of the close
B-2
of business on the 15th day of the month preceding the interest payment date, or to such person's
order.
The Bond Registrar shall require the Bond owner requesting transfer or exchange to pay any
tax or other governmental charge required to be paid with respect to such transfer or exchange.
Additional Bonds may be issued, subject to the limitations set forth in the Ordinance, which
rank on a parity with the Bonds.
This Bond shall not become valid or obligatory for any purpose until the certificate of
authentication hereon endorsed hall have been dated and signed by the Bond Registrar.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and
things required by law to exist, happen and be performed precedent to and in the issuance of this
Bond have existed, happened and -been performed in due time, form and manner as required by law,
and that the amount of this Bond, together with all other indebtedness of the District, does not
exceed any debt limit prescribed by the laws or Constitution ofthe State of Hawaii.
IN WITNESS WHEREOF, the County of Hawaii, Hawaii, has caused this Bond to be
signed by the Mayor of the County by facsimile signature and attested by the Director of Finance of
the County.
COUNTY OF HAWAII, HAWAII
Mayor, County of Hawaii
ATTEST:
Director of Finance, County of Hawaii
(SEAL)
B-3
FORM OF CERTIFICATE
OF AUTHENTICATION
This Bond is one of the County of Hawaii, Improvement District No. 17, Kaloko
Subdivision, ?001 Special Assessment Refunding Bonds described in the within-mentioned
Ordinance.
Dated: as Bond Registrar
By:
Authorized Signatory
B-4
FORM OF ASSIGNMENT
For value received, the undersigned does hereby sell, assign and transfer unto (PLEASE INSERT
SOCIAL SECURITY NUMBEf:: OR OTHER IDENTIFYING NUMBER OF .'ASSIGNEE)
(Please print or typewrite name and address including postal zip code of assignee) the within
mentioned Bond, and hereby incvocable constitute(s) and appoint(s)
Attorney, to transfer said Bond on the books of
as Bond Registrar, with full power of substitution in the premise.
Dated:
NOTICE: The signature on this Assignment
must correspond with the name (s) as
written on the face of the within Bond
in every particular without alteration
or enlargement or any change
whatsoever.
Signature Guaranteed:
NOTE: Signature (s) must be guaranteed
by a member firm of the New York Stock
Exchange or a commercial bank or trust
company.
B-5
OFFICE OF THE COUNTY CLERK
County of Hawaii
Hilo ,Hawaii
(DRAFT 2)
RQt,E C~'~LLYOTE
Introduced By: Aaron Chung AYES NOES ABS EX
Date Introduced: November 21, 2001 Arakaki t-.,.' X
First Reading: November 21, 2001 Chung ~ X '
Published: December 2 , 2 0 01 Elarionoff X
Jacobson X
REMARKS: Leithead-Todd X
Pisicchio X
Safarik X
Tyler X
Yagong X
9 0 0 0
(DRAFT 4)
Second Reading: December 5, 2001 ROLL CALL VOTE
To Mayor: December 12, 200 AYES NOES ABS EX
Returned: December 18, 2001. Arakaki X
Effective: December 17, 2001 Chung X
Published: January 1, 2002 Elarionoff X
Jacobson X
REM.9RKS: Leithead-Todd X
Pisicchio X
Safarik X
Tyler X
Yagong X
9 0 0 0
1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as
indicated above.
APPROVED AS TO
FORM AND LEGALITY:
GL CHAIRMAN
~~t t~I;~ B~ ~ CORPORATsON COUNSEL
COU TY OF HAWAII
COUNTY CLERK
-
Date '
131 (DRAFT 4)
Bill No.:
Reference: C- 418.12
Appro d/Disapproved this ~ day
J7zGC~nn~p ~nr" Ord N o.: ~ ~ ~'tg
of ,20 d1
//MAYOR, UNTYOFHAWAII