COUNTY OF MAUI, BOARD OF WATER SUPPLY
RESOLUTION NO. 06 (1997)

RELATING TO INTERFUND BORROWING



	WHEREAS,  the  Board  approved  a  Bond  Resolution  on

December  17,  1991 (the "Bond Resolution") authorizing  and

providing for the issuance of revenue bonds for the purposes

of the Water System; and

	WHEREAS, Board funds are established for restricted

purposes, and

	WHEREAS, fund balances from time to time exceed

encumbrances, now, therefore, be it resolved by the Board of

Water Supply of the County of Maul as follows:

     1) That in the event there are monies in the Restricted

Fund that, in the judgement of the Director, are in execess

of the amounts necessary for the immediate requirements of

the respective fund and where such action will not impede

the necessary or desirable operations of the Board, the

Board may approve by resolution interfund borrowing without

interest, and

     2) That funds borrowed by the Board from its restricted

funds are to be held to the same standard as funds borrowed

through the issuance of bonds as set forth in the General

Provisions for the Issuance of Bonds, Section 3.03 of

Article III of the Bond Resolution in December 17, 1991, and

     3) That requirements of Section 3.03 that can not be

given effect are to be so noted in all Interfund Borrowing

Resolutions; and

     4) That such resolution shall state a) the amount of

the loan requirement, b) the reason or justification for the

loan, c) the source of funding to reimburse or repay the

transfer or loan, and d) the time schedule proposed for

reimbursement or repayment of the loan, which shall not

exceed one year from the date of borrowing, and

     5) That a copy of this resolution be attached to any

Interfund Borrowing Resolution.

IN WITNESS WHEREOF, and by proper vote of the Board of Water

Supply, I have hereunto subscribed my name and affixed the

seal of the Board of Water Supply


this 21st day of October, 1997.

Dorvin Leis, Chairperson
Maui County Board of Water Supply

APPROVED AS TO FORM AND LEGALITY:

Gary Zakian
Deputy Corporation Counsel