HAR §15-19-85. Sale and use of bonds

(a) Assessment area bonds, including refunding assessment area bonds, may be sold at public or private sale, and for a price or prices as may be determined by resolution of the authority to be in the best interest of the State. (b) If the bonds are to be sold at public sale, the executive director shall advertise for tenders, for the par value or below par value thereof in accordance with the provisions hereof and the resolution authorizing the issuance and sale of bonds. Publication of the advertisement shall be made at least once in a newspaper of general circulation published in the county in which the improvements are situated at least five days prior to the date of sale. In the event only part of the issue so advertised to bid for, then the executive director shall sell at private sale the whole or any part of the remainder of the issue for the par value or below par value thereof at an interest rate not exceeding the highest interest rate received and established by bid. (c) If no purchaser is found at the private sale pursuant to subsection (b) above, then the authority may by UNOFFICIAL COMPILATION NOVEMBER 1999 -25- resolution authorize the executive director to sell at private sale the remainder of the issue for the par value or below par value thereof at an interest rate not exceeding the maximum interest rate established by the resolution authorizing the issue. The proceeds from the sale thereof shall be applied to pay wholly or in part the contract price of improvement and any other costs involved in the undertaking of the improvement, including the cost of land acquisition. In the event no purchaser is found at an advertised sale or at private sale, then the unsold bonds so issued shall be used by the authority at par at the maximum interest rate established by the resolution authorizing the issue to pay wholly or in part the contract price of the improvement made as aforesaid. (d) Prior to the sale of any assessment area bonds, the authority shall determine that sufficient sources of funds are available to complete the improvements in the assessment area for which the bonds are to be issued. [Eff 9/17/84, am 11/1/85, am 2/22/93] (Auth: HRS §§206E-4, 206E-6) (Imp: HRS §§206E-4, 206E-6)