How improvement district bonds get paid

A. The director of finance shall preserve a record of the bonds for each improvement district in a suitable book kept for that purpose. The bonds shall be payable only out of the moneys collected on the unpaid assessments for which said bonds were issued, or from the reserve fund established for such improvement district pursuant to section 14.52.070 , in the event that the moneys collected on the unpaid assessments are not sufficient to pay the bonds or the interest thereon as the same become due. The county shall not otherwise guarantee payment of any bonds issued under the provisions of this article; provided, that, with the approval of the council, interest payments may be advanced temporarily out of any moneys available in the general fund of the county. Moneys in the bond account of the special fund referred to in section 14.50.230 shall be applied solely to the payment of interest and principal of bonds issued for such improvement district, and premiums, if any, on payment of bonds before maturity, until such bonds have been paid. In the event that moneys in the account prove insufficient at any time to pay the principal and interest, or the interest only, as the case may be, on bonds outstanding, moneys shall be advanced from the reserve fund established pursuant to section 14.52.070 into the bond account of the special fund in such amounts as will enable the director of finance to make the payment of principal or interest, or interest only, as the same becomes due. B. The principal and interest of the bonds shall be payable at the office of any bank or fiduciary company or such other places as may be determined by the director of finance. In all cases, the bonds and coupons shall recite the place of payment. In case any bonds are made payable elsewhere than in Wailuku, Hawaii, the director of finance shall remit the funds necessary to pay the interest and principal when due, of any such bonds, with exchange, to the institution so designated, first assuring himself that such institution is then solvent. (Ord. 801 § 1 (part), 1974: prior code § 25-8.3)