Short Term Borrowing

The Board may at any time or from time to time, by resolution adopted by a majority of all the members of the Board and approved by I Maga’håga/Maga’låhi, incur indebtedness for any lawful purpose for any period not exceeding five

(5)years evidenced by contract with any person or by one or more promissory notes executed as provided in § 8217 (relating to bonds) and delivered to any person. Any such indebtedness shall be incurred subject and subordinate to any contractual obligation of the Board to the holders of any bonds and the principal thereof and interest thereon may be repaid:

(a)form revenues; or

(b)if incurred for a purpose for which bonds may be issued, from revenues or from the proceeds of sale of bonds.