HRS §47-32
Using sinking fund money to pay off bonds
The finance director must use money set aside in a sinking fund to pay off bonds when the bond agreements say to. If bonds are being paid off early, the director must give notice as the agreements require. If bondholders don't come forward by the redemption date, the money stays set aside for them until they do.
state agencies
The statute, as written — Retirement of bonds from sinking fund money
The director of finance, without further authorization or direction, shall apply money on deposit to a sinking fund to redeem bonds at such times and in such amounts as is required by the proceedings authorizing the bonds. The director of finance shall provide a notice of redemption in the event the bonds are retired by redemption, in such form and substance as is required by the proceedings authorizing the bonds. If the bonds so redeemed as aforesaid are not presented for payment or redemption on or before the redemption date specified in the notice, the amount due thereon shall be held exclusively for the payment of the bonds whenever presented. All redemptions shall be made as provided by law and no notice of redemption shall be required other than that as provided in the proceedings authorizing the bonds.
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