Section 15-19-83 - Special funds for payment of bonds(a) All moneys collected on account of assessments and interest for any improvement or improvements after the issuance of any assessment area bonds, including refunding assessment bonds, for the improvement or improvements shall be kept by the executive director in a special fund and applied solely to the payment of interest and principal of the assessment area bonds until the bonds have been paid. In the event that any surplus remains in the special fund after the payment of assessment area bonds chargeable against the fund or in case of a premium received on the sale of the bonds, it shall be credited and become a part of a fund to be known as the assessment area revolving fund. Moneys in the assessment area revolving fund shall be available to make up deficiencies in the proceeds of bonds sold below par, to cover deficiencies in interest realized on account of diminishing balances of installments outstanding, to advance interest due on assessment area bonds outstanding prior to collection of annual assessments, to be advanced by the authority in lieu of issuing assessment area bonds for the purposes specified in section 15-19-81(e) hereof, to pay all expenses in connection with the sale of delinquent assessment area lots, and to pay the prices of the delinquent lots as are bid for and purchased for the authority by the executive director, and the executive director is authorized upon the purchase to transfer the proper amounts so bid to the proper special funds for the respective assessment area concerned.(b) The executive director shall advance moneys in the assessment area revolving fund for any part of unpaid assessments for any improvement or improvements when, pursuant to this chapter, the authority has rounded off the amount of bonds to be issued, the advancement to be in the amount equal to the difference between the total of the bonds issued and the total of the unpaid assessment. Upon recommendation of the executive director, the authority may by resolution authorize the executive director also to advance moneys in the assessment area revolving fund for unpaid assessments for any improvement or improvements in lieu of the issuance of bonds where the aggregate of the assessment installments for all property owners in the assessment area is less than $1,000.00 for each year, for the purposes specified in section 15-19-81(e) hereof in lieu of issuing assessment area bonds, for any unpaid amount of the first installment of the assessments where elections have been made to pay the assessments in installments and for any payment in connection with any improvement or improvements for which the issuance and sale of assessment area bonds have been duly authorized. After the authority has created, defined and established an assessment area pursuant to this chapter, the authority, upon recommendation of the executive director, may by resolution authorize the executive director to advance moneys in the assessment area revolving fund for the cost of land acquisition for improvements pursuant to this chapter.[Eff 9/17/84, am 2/22/93, am 6/3/95] (Auth: HRS §§ 206E-4, 206E-6) (Imp: HRS §§ 206E-4, 206E-6)