(1) The refunding bonds authorized under RCW
47.56.770 must be general obligation bonds of the state of Washington and must be issued in a total principal amount not to exceed fifteen million dollars. The exact amount of refunding bonds to be issued must be determined by the state finance committee after calculating the amount of money deposited with the trustee for the bonds to be refunded which can be used to redeem or defease outstanding toll bridge authority, ferry, and Hood Canal bridge revenue bonds after the setting aside of sufficient money from that fund to pay the first interest installment on the refunding bonds. The refunding bonds must be serial in form maturing at such time, in such amounts, having such denomination or denominations, redemption privileges, and having such terms and conditions as determined by the state finance committee. The last maturity date of the refunding bonds may not be later than January 1, 2002.
(2) The refunding bonds must be signed by the governor and the state treasurer under the seal of the state, which signatures must be made manually or in printed facsimile. The bonds must be registered in the name of the owner in accordance with chapter
39.46 RCW. The refunding bonds must distinctly state that they are a general obligation of the state of Washington, must pledge the full faith and credit of the state, and must contain an unconditional promise to pay the principal thereof and the interest thereon when due. The refunding bonds must be fully negotiable instruments.
(3) The principal and interest on the refunding bonds must be first payable in the manner provided in this section from the proceeds of state excise taxes on fuels imposed by chapter
82.38 RCW.
(4) The principal of and interest on the refunding bonds must be paid first from the state excise taxes on motor vehicle and special fuels deposited in the ferry bond retirement fund. There is hereby pledged the proceeds of state excise taxes on motor vehicle and special fuels imposed under chapter
82.38 RCW to pay the refunding bonds and interest thereon, and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on the refunding bonds. Not less than fifteen days prior to the date any interest or principal and interest payments are due, the state finance committee must certify to the state treasurer such amount of additional money as may be required for debt service, and the treasurer must thereupon transfer from the motor vehicle fund such amount from the proceeds of such excise taxes into the ferry bond retirement fund. Any proceeds of such excise taxes required for these purposes must first be taken from that portion of the motor vehicle fund which results from the imposition of the excise taxes on motor vehicle and special fuels and which is distributed to the Puget Sound capital construction account. If the proceeds from excise taxes distributed to the state are ever insufficient to meet the required payments on principal or interest on the refunding bonds when due, the amount required to make the payments on the principal or interest must next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities, and towns pursuant to RCW
46.68.090. Any payments of the principal or interest taken from the motor vehicle or special fuel tax revenues which are distributable to the counties, cities, and towns must be repaid from the first money distributed to the state not required for redemption of the refunding bonds or interest thereon. The legislature covenants that it will at all times provide sufficient revenues from the imposition of such excise taxes to pay the principal and interest due on the refunding bonds.